The revenue decline and volume weakness across key segments (oil terminaling -15%, water gathering -12%) signal a softening production environment from Chevron's Bakken activity. With guidance reaffirmed and no upside catalyst, the stock is likely range-bound. Monitor Chevron's drilling plans and Q3 throughput data for signs of stabilization or further deterioration.
Price Chart
Executive Summary
Hess Midstream LP reported Q2 2026 net income attributable to the LP of $96.4M ($0.75/Class A share), up from $90.3M ($0.74/share) in Q2 2025, but consolidated revenue fell 3.7% YoY to $399.0M due to lower throughput volumes across oil terminaling (-15%), water gathering (-12%), and gas processing (-4%). The company reaffirmed full-year 2026 guidance for net income ($650-700M), Adjusted EBITDA ($1,225-1,275M), and Adjusted Free Cash Flow ($910-960M), while increasing the quarterly distribution to $0.7888/share. The revenue decline and volume weakness are the dominant signals, making this a neutral-to-slightly-bearish report despite the EPS beat and steady guidance.
Key Financial Metrics
Key Facts
- Q2 2026 net income attributable to Hess Midstream LP was $96.4M, or $0.75 basic EPS, vs $90.3M ($0.74) in Q2 2025.
- Consolidated revenue fell 3.7% YoY to $399.0M from $414.2M, driven by lower throughput volumes.
- Throughput volumes declined YoY: oil terminaling -15%, water gathering -12%, gas processing -4%.
- Adjusted EBITDA was $313.7M vs $316.0M in Q2 2025; Adjusted Free Cash Flow was $231.6M.
- Full-year 2026 guidance reaffirmed: net income $650-700M, Adjusted EBITDA $1,225-1,275M, Adjusted FCF $910-960M.
- Quarterly cash distribution increased to $0.7888/Class A share, up $0.0096 from Q1 2026.
- Capital expenditures were $30.6M, down 56% from $70.0M in Q2 2025.
- Revolving credit facility drawn balance reduced to $256.0M from $343.0M at Q1 2026 end.
Financial Impact
Revenue down $15.2M YoY (-3.7%); net income attributable to LP up $6.1M (+6.8%); Adjusted FCF up $37.8M (+19.5%)
Risk Factors
- Continued production decline from Chevron's Bakken operations could further reduce throughput volumes and revenue.
- Lower new-well activity and planned maintenance at the Tioga Gas Plant may pressure volumes in H2 2026.
- Reaffirmed guidance leaves no room for upside surprise if volumes deteriorate further.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-329567 |
| Document: hesm-20260803.htm | 0001193125-26-329567 |
| Document: 0001193125-26-329567-index-headers.html | 0001193125-26-329567 |
| Document: 0001193125-26-329567-index.html | 0001193125-26-329567 |
| Document: 0001193125-26-329567.txt | 0001193125-26-329567 |
| 8-K Data (Synthetic) | 0001193125-26-329567 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 3, 2026 8w ago | 8-K | $40.77 $40.21 | ▼ −1.37% | ▼ −2.61% | $37.67 (−7.62%) |
May 4, 2026 21w ago | 8-K | $38.71 $37.92 | ▼ −2.05% | ▼ −7.70% | $37.67 (−2.71%) |
Mar 4, 2026 30w ago | 8-K | $38.08 $38.81 | ▲ +1.92% | ▲ +5.71% | $37.67 (−1.08%) |
US Market Status
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