Hess Midstream LP Achieves Significant Growth in Q4 2024
Hess Midstream LP Announces Impressive Fourth Quarter 2024 Results
Hess Midstream LP (NYSE: HESM) has reported its estimated financial results for the fourth quarter of 2024, revealing a remarkably successful period. The company achieved a net income of $172.1 million for this quarter, which marks a significant increase from the $152.8 million reported in Q4 2023. Following the deduction for noncontrolling interests, the net income attributable to Hess Midstream LP was $70.4 million, or $0.68 basic earnings per Class A share, showcasing a commendable rise from the $0.55 per Class A share in the same quarter last year.
Financial Performance Overview
The fourth quarter saw Hess Midstream generate an Adjusted EBITDA of $298.2 million, demonstrating the company's ability to manage its operational costs effectively while maximizing revenue. Furthermore, the total cash flow from operating activities reached $258.5 million, with an Adjusted Free Cash Flow of $164.3 million.
"In 2024, we attained significant volume growth and continued progressing on our multi-year infrastructure projects," said John Gatling, President and Chief Operating Officer. The focus remains on delivering reliable operating performance that will enhance throughput volumes and create value for shareholders.
Operating Highlights
Hess Midstream's operational metrics reflect enhanced throughput volumes, recording a 16% increase for gas processing and a 15% increase in gas gathering. Additionally, crude oil gathering volumes rose by 11% while terminaling operations saw a 6% growth, attributed to the overall higher production levels. Water gathering volumes also increased sharply by 15%, due to the efficiency of Hess Midstream's infrastructure.
Costs and Capital Expenditures
The total operating costs and expenses in Q4 2024 reached $152.9 million, which was an increase from $146.4 million in Q4 2023. The rise in costs resulted primarily from increased expenses associated with pass-through services and shared agreements with Hess Corporation. Capital expenditures for the quarter were $84.3 million, up from $71.8 million a year earlier, due to ongoing expansions in gas compression and related pipeline infrastructure.
Future Outlook
As the company reflects on its successful fourth quarter, it plans to provide guidance for 2025 in an upcoming release. Investors and market analysts are keenly awaiting this information to understand the strategic direction Hess Midstream will take in the new year.
About Hess Midstream
Hess Midstream LP is a growth-oriented midstream company that specializes in operating, developing, and acquiring midstream assets. These assets are crucial for processing, terminaling, and transporting oil and gas, primarily serving Hess Corporation and various third-party customers in North Dakota's Bakken and Three Forks shale plays.
Frequently Asked Questions
What were Hess Midstream's net income and earnings per share for Q4 2024?
Hess Midstream reported a net income of $172.1 million, with earnings of $0.68 per Class A share.
How does the Q4 2024 performance compare to Q4 2023?
The net income increased from $152.8 million in Q4 2023 to $172.1 million in Q4 2024, marking a substantial improvement.
What factors contributed to the revenue growth in Q4 2024?
Increased physical volumes in gas processing, gas gathering, and crude oil gathering primarily drove the revenue growth.
When will Hess Midstream release its 2025 guidance?
The company plans to issue guidance for 2025 on January 29, 2025.
What is Hess Midstream's focus moving forward?
Hess Midstream aims to enhance reliable operating performance and continue increasing throughput volumes to provide substantial value for shareholders.
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