Hess Midstream Posts Q2 2026 Adjusted EBITDA of $313.7M and Reaffirms Full-Year Outlook
HESM sits 31% above its 52-week low of $31.63.
Summary
Hess Midstream reported Q2 2026 net income of $173.7 million and Adjusted EBITDA of $313.7 million, raised its quarterly distribution, and reaffirmed full-year guidance, highlighting strong free cash flow generation despite lower throughput volumes.
Key Events · Earnings and Guidance · HESM
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Q2 2026 Financial Results
Net income came in at $173.7 million, with Adjusted EBITDA of $313.7 million and Adjusted Free Cash Flow of $231.6 million. Attributable to Hess Midstream LP, net income was $96.4 million, or $0.75 basic earnings per Class A share.
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Distribution Increase
The quarterly cash distribution was raised to $0.7888 per Class A share, a $0.0096 increase from Q1 2026, payable on August 14, 2026 to shareholders of record as of August 6, 2026.
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Full-Year 2026 Guidance Reaffirmed
Management reaffirmed its full-year outlook: net income of $650-700 million, Adjusted EBITDA of $1.225-1.275 billion, and Adjusted free cash flow of $910-960 million. After targeted distributions, approximately $280 million remains available for incremental shareholder returns or debt repayment.
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Capital Expenditure Reduction
Capital expenditures in Q2 2026 totaled $30.6 million, down 56% from $70.0 million in Q2 2025, primarily due to the completion of gas compression capacity expansion.
Analysis · HESM · Energy & Transportation
Despite lower throughput volumes from reduced drilling activity, Hess Midstream turned in a solid second quarter with Adjusted EBITDA of $313.7 million and Adjusted Free Cash Flow of $231.6 million. The company lifted its quarterly distribution to $0.7888 per share and reaffirmed full-year 2026 guidance, underscoring confidence in its fee-based cash flow generation. Capital expenditures fell 56% year-over-year to $30.6 million, reflecting the completion of major expansion projects and freeing up more cash for shareholder returns. At the midpoint, the reaffirmed guidance implies roughly $935 million in Adjusted Free Cash Flow for the year, leaving about $280 million after targeted distributions for incremental returns or debt reduction.
At the time of this filing, HESM was trading at $41.58 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $8.4B. The 52-week trading range was $31.63 to $44.14. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.