Hess Midstream LP reported first‑quarter 2026 results that included net income of $157.7 million and adjusted EBITDA of $299.8 million, both figures in line with or slightly better than analyst expectations. The company’s revenue for the quarter was $390.1 million, a $8.1 million increase from the $382.0 million earned in Q1 2025. The revenue figure fell short of the consensus estimate of $397.3 million, a miss of $7.2 million, but it beat the lower estimate of $389.51 million by $0.59 million.
The earnings beat was driven by a strong adjusted EBITDA margin of roughly 83%, well above the company’s 75% target. This margin expansion reflects disciplined cost management and pricing power in fee‑based midstream services, offsetting the decline in throughput volumes for oil terminaling and water gathering that resulted from lower production and new‑well activity. The company also benefited from the completion of its gas compression expansion, which reduced capital expenditures to $10.4 million in Q1 2026 from $50.1 million a year earlier.
Management highlighted the significant capex reduction and reaffirmed its 2026 throughput, net income, and adjusted EBITDA targets. CEO Jonathan Stein said the company “continued to execute our operational priorities and deliver our financial strategy,” noting that “Q1 is… the low point in terms of volume.” CFO Mike Chadwick added that the terminaling contract “goes through to 2033” and that the cost‑of‑service rate is adjusted annually. The company also announced a raised full‑year adjusted free cash flow guidance of $910‑$960 million, reflecting the lower capex and a deferral of material income tax payments until after 2028.
The guidance signals strong confidence in cash generation and a commitment to shareholder returns, with a targeted 5 % annual distribution growth policy. The company’s partnership with Chevron as a sponsor is expected to provide long‑term stability and growth opportunities. Investors reacted positively to the results, citing the raised free cash flow guidance and reduced capex as key drivers of the favorable market response.
The Q1 2026 results also included a modest EPS of $0.68 per Class A share, a beat of $0.01 against the consensus estimate of $0.67. The EPS beat is attributed to the company’s ability to maintain high margins and control costs, even as throughput volumes dipped. The company’s guidance for the remainder of the year remains unchanged, underscoring management’s confidence in the business model and operational execution.
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