Hess Midstream LP (NYSE:HESM) reported fourth-quarter 2025 results that matched earnings expectations but came up short on revenue, prompting a modest pullback in the stock.
The midstream operator posted earnings per share of $0.72, in line with analyst consensus, while revenue totaled $404.2 million, below forecasts of $417.05 million. Shares slipped about 0.9% following the release as investors weighed the top-line miss against steady profitability.
Quarterly net income reached $168.0 million, with $93.3 million attributable to Hess Midstream LP. The company generated Adjusted EBITDA of $309.1 million and Adjusted Free Cash Flow of $207.8 million, underscoring resilient cash generation even as volumes softened.
“In 2025, we successfully completed our planned multiyear infrastructure project buildout,” said Jonathan Stein, Chief Executive Officer of Hess Midstream. “We remain focused on reliable operating performance and expect substantially lower future capital spending, supporting growing Adjusted Free Cash Flow that positions us well for incremental shareholder returns and debt repayment.”
Throughput declined year over year across all business lines, with oil terminaling volumes down 4%, gas processing off 1%, and water gathering lower by 5% versus the fourth quarter of 2024. Management attributed the decreases mainly to reduced production tied to severe winter weather.
Capital spending in the quarter fell sharply to $47.6 million, down 44% from a year earlier, reflecting the completion of the company’s gas compression expansion program.
Hess Midstream raised its quarterly cash distribution to $0.7641 per Class A share, an increase of $0.0093 from the prior quarter, and reaffirmed its full-year 2026 and longer-term guidance issued in December 2025.
As of year-end 2025, total debt stood at roughly $3.8 billion, equating to leverage of about 3.1 times Adjusted EBITDA.