Hess Midstream(NYSE) HESM

Hess Midstream LP helps energy companies move products from wells. It uses pipelines and storage to clean and transport natural gas. These services help producers manage energy resources safely and reliably.

How the Network Operates

• Gathering Services: Moving natural gas, crude oil, and water from wells through 1,350 miles of gas and 550 miles of oil pipelines; generated $209.8 million in revenue during the second quarter of 2026.
• Processing and Storage: Cleaning natural gas at the Tioga Gas Plant and storing propane in underground caverns; generated $151.3 million in revenue during the second quarter of 2026.
• Terminaling and Export: Managing rail terminals and trucks to ship crude oil to diverse markets; generated $37.9 million in revenue during the second quarter of 2026.

Growing Capacity and Buying Shares

• Placed a new compressor station into service in the first quarter of 2026 to add 50 million cubic feet per day of natural gas capacity.
• Repurchased $42.0 million of Class A shares through an accelerated share repurchase agreement in the first quarter of 2026.
• Purchased 455,811 Class B units from the company sponsor on March 4, 2026, for approximately $18.0 million.

Essential Bakken Infrastructure

Hess Midstream operates primarily in the Bakken and Three Forks shale regions of North Dakota, which are critical areas for American energy production. The company relies on long-term, fee-based contracts with Chevron to ensure stable income and protection from daily swings in oil and gas prices.

Second Quarter Financial Highlights

• Total revenues and other income reached $399.0 million in the second quarter of 2026, down from $414.2 million in the prior-year quarter.
• Consolidated net income was $173.7 million for the second quarter of 2026.
• Adjusted EBITDA, a measure of core operating profit, was $313.7 million in the second quarter of 2026, down $2.3 million from the second quarter of 2025.
• Capital expenditures reached $41.0 million for the six-month period ended June 30, 2026, compared to $120.1 million in the same period of 2025.
• The company declared a cash distribution of $0.7888 per Class A share on July 27, 2026.

Bottom Line

Hess Midstream has evolved into a specialized provider of energy infrastructure with a focus on the Bakken shale region. Its shift toward managing existing assets and returning capital to shareholders through distributions and buybacks provides a foundation for operational stability.