The following is a summary of the Hess Midstream LP (HESM) Q1 2024 Earnings Call Transcript:
Financial Performance:
Hess Midstream reported a Q1 net income of $162 million, an increase from $153 million in Q4 2023. The adjusted EBITDA for Q1 2024 was $276 million, a rise from $264 million in the previous quarter.
The projected net income for Q2 2024 is expected to be between $155 million and $165 million. Additionally, an adjusted EBITDA of $270 million to $280 million is expected in Q2 2024.
For the full year of 2024, Hess Midstream foresees a net income ranging from $670 million to $720 million, and an adjusted EBITDA between $1.125 billion and $1.175 billion.
The company anticipates generating an adjusted free cash flow from $685 million to $735 million in 2024.
Since 2021, Hess Midstream has returned $1.65 billion to shareholders through unit repurchases, reducing the total unit count by over 20%.
Business Progress:
In Q1 2024, Hess Midstream reported an average throughput volume of 393 million cubic foot per day for gas processing, 117,000 barrels of oil per day for crude terminaling and 116,000 barrels of water per day for water gathering.
The company projects for FY 2024 an average gas processing volume between 395 million and 405 million cubic foot per day, crude terminaling volumes between 120,000 and 130,000 barrels of oil per day, and water gathering volumes between 105,000 and 115,000 barrels of water per day.
Construction of greenfield, high-pressure gas gathering pipelines and two compressor stations are progressing on schedule, providing further gas compression capacity. The total capital expenditure for 2024 is expected to be between $250 million and $275 million.
A unit repurchase worth $100 million was completed in March 2024.
Hess Midstream aims to provide additional incremental returns to shareholders, emphasizing a consistent and ongoing return to its stakeholders.
More details: Hess Midstream IR
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