The following is a summary of the Hess Midstream LP (HESM) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Hess Midstream reported a Q3 net income of $165 million, an increase from $160 million in the previous quarter.

• Adjusted EBITDA for Q3 was $287 million, up from $276 million in Q2, driven by higher throughput volumes.

• Gross adjusted EBITDA margin was maintained at approximately 80%, above the targeted 75%.

• Full-year 2024 adjusted EBITDA forecasted to grow by greater than 10%, with capital expenditures expected to be around $270 million.

• Total shareholder return yield remains one of the highest among midstream peers, with significant returns delivered through strategic repurchases amounting to $300 million year-to-date.

Business Progress:

• Continuing development activities in the Bakken with a maintained 4-rig program, aiming to support an approximate 10% volume growth across oil and gas systems through 2024.

• Construction and planning advances on new compressor stations and a new 125 million cubic foot per day gas processing plant to support long-term growth, slated to come online in 2027.

• There's a steady focus on gas capture and maintaining high system availability, despite operational disruptions like wildfires and planned maintenance.

Opportunities:

• Hess Midstream has forecasted a growth in throughput by approximately 10% for 2024, supported by upward trends in Bakken production from Hess Corporation and third-party developments.

• The planned new gas processing plant and infrastructure developments underline a strategic expansion to cater to projected increases in production and demand.

Risks:

• Potential volume impacts from wildfires and power outages affecting throughput volumes, specifically highlighted for the fourth quarter projections.

• Market conditions and physical disruptions pose a continuous risk to operational stability and expected volume throughput, influencing financial projections marginally.

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