Overview

• U.S. midstream operator's Q1 revenue slightly beat analyst expectations

• Q1 adjusted EBITDA was a slight miss versus consensus

• Company completed $60 mln in share and unit repurchases, raised quarterly cash distribution

Outlook

• Hess Midstream raises 2026 Adjusted Free Cash Flow guidance to $910-$960 mln

• Company reaffirms 2026 guidance for throughput, net income and Adjusted EBITDA

• Hess Midstream does not expect to pay material income taxes until after 2028

Result Drivers

• TARIFF AND SERVICE REVENUE - Higher tariff rates, third-party services, and pass-through revenues drove year-on-year revenue growth, partially offset by lower throughput volumes

• THROUGHPUT CHANGES - Oil terminaling and water gathering throughput fell due to lower production from reduced new-well activity; gas processing throughput rose on higher third-party volumes

• LOWER CAPITAL SPENDING - Capital expenditures dropped 79% from the prior-year quarter after completing gas compression capacity expansion

Company press release: ID:nBw5DcPbQa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$390.10 mln	$389.51 mln (4 Analysts)
Q1 Net Income		$157.70 mln
Q1 Adjusted EBITDA	Slight Miss*	$299.80 mln	$300.43 mln (6 Analysts)
Q1 Adjusted Free Cash Flow		$237 mln
Q1 Capex		$10.40 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy."

• Wall Street's median 12-month price target for Hess Midstream LP is $37.00, about 2.9% below its May 1 closing price of $38.12

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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