Hess Midstream Q4 revenue misses analyst expectations on weather impact

Overview

• Midstream service provider's Q4 revenue missed analyst expectations

• Adjusted EBITDA for Q4 missed analyst expectations

• Company increased quarterly cash distribution to $0.7641 per Class A share

Outlook

• Hess Midstream reaffirms full year 2026 and long-term guidance issued on December 9, 2025

• Company expects lower future capital spending to support growing adjusted free cash flow

Result Drivers

• WEATHER IMPACT - Severe winter weather led to decreased throughput volumes in oil terminaling, gas processing, and water gathering

• CAPEX REDUCTION - Completion of infrastructure projects led to a 44% decrease in capital expenditures

• INFRASTRUCTURE COMPLETION - Successful completion of multiyear infrastructure project buildout reduced future capital spending

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "hold" and no "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 4.3% above its January 30 closing price of $35.47

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

Press Release: ID:nBw8DgMgHa

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