Item 1. Financial Statements
Item 1. Financial Statements
March 31,
December 31,
2026
2025
(in millions, except share amounts)
Assets
Cash and cash equivalents
$
4.6
$
1.9
Accounts receivable from contracts with customers:
Accounts receivable—trade
6.9
6.7
Accounts receivable—affiliate
149.3
143.5
Other current assets
5.0
6.9
Total current assets
165.8
159.0
Equity investments
80.0
81.5
Property, plant and equipment, at cost
5,385.2
5,374.6
Accumulated depreciation
( 2,063.1
)
( 2,004.8
)
Property, plant and equipment, net
3,322.1
3,369.8
Deferred tax asset
744.6
773.9
Other noncurrent assets
4.7
4.1
Total assets
$
4,317.2
$
4,388.3
Liabilities
Accounts payable—trade
$
30.3
$
24.9
Accounts payable—affiliate
22.8
26.9
Accrued liabilities
88.5
89.4
Current maturities of long-term debt
35.0
32.5
Other current liabilities
4.6
14.1
Total current liabilities
181.2
187.8
Long-term debt
3,737.0
3,739.5
Deferred tax liability
0.5
0.5
Other noncurrent liabilities
23.7
22.6
Total liabilities
3,942.4
3,950.4
Partners’ capital
Class A shares ( 128,350,881 shares issued and outstanding as of
March 31, 2026; 129,403,244 shares issued and outstanding
as of December 31, 2025)
518.0
568.3
Class B shares ( 77,827,485 shares issued and outstanding as of
March 31, 2026; 78,283,296 shares issued and outstanding as of
December 31, 2025)
-
-
Total Class A and Class B partners’ capital
518.0
568.3
Noncontrolling interest
( 143.2
)
( 130.4
)
Total partners’ capital
374.8
437.9
Total liabilities and partners’ capital
$
4,317.2
$
4,388.3
See accompanying notes to unaudited consolidated financial statements.
2
PART I—FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
Table of Contents
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31,
2026
2025
(in millions, except per share data)
Revenues
Affiliate services
$
373.1
$
374.3
Third-party services
15.6
6.7
Other income
1.4
1.0
Total revenues
390.1
382.0
Costs and expenses
Operating and maintenance expenses (exclusive of
depreciation shown separately below)
85.6
85.6
Depreciation expense
58.5
51.5
General and administrative expenses
7.9
7.5
Total operating costs and expenses
152.0
144.6
Income from operations
238.1
237.4
Income from equity investments
3.2
3.4
Interest expense, net
55.4
56.4
Income before income tax expense
185.9
184.4
Income tax expense
28.2
23.0
Net income
157.7
161.4
Less: Net income attributable to noncontrolling interest
70.1
89.8
Net income attributable to Hess Midstream LP
$
87.6
$
71.6
Net income attributable to Hess Midstream LP
per Class A share:
Basic
$
0.68
$
0.65
Diluted
$
0.68
$
0.65
Weighted average Class A shares outstanding
Basic
129.2
110.7
Diluted
129.2
110.8
See accompanying notes to unaudited consolidated financial statements.
3
PART I—FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
Table of Contents
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)
(UNAUDITED)
Partners’ Capital
Class A
Shares
Class B
Shares
Noncontrolling
Interest
Total
(in millions)
Balance at December 31, 2025
$
568.3
$
-
$
( 130.4
)
$
437.9
Net income
87.6
-
70.1
157.7
Equity-based compensation
0.2
-
-
0.2
Distributions - $ 0.7641 per share
( 98.9
)
-
( 59.8
)
( 158.7
)
Deferred tax asset
( 1.1
)
-
-
( 1.1
)
Share and unit repurchases
( 37.2
)
-
( 22.8
)
( 60.0
)
Transaction costs (1)
( 0.9
)
-
( 0.3
)
( 1.2
)
Balance at March 31, 2026
$
518.0
$
-
$
( 143.2
)
$
374.8
Balance at December 31, 2024
$
530.7
$
-
$
( 65.4
)
$
465.3
Net income
71.6
-
89.8
161.4
Equity-based compensation
0.3
-
-
0.3
Distributions - $ 0.7012 per share
( 73.0
)
-
( 78.1
)
( 151.1
)
Deferred tax asset
137.8
-
-
137.8
Sale of shares held by Sponsors
( 16.9
)
-
16.9
-
Share and unit repurchases
( 48.8
)
-
( 51.2
)
( 100.0
)
Transaction costs
( 0.4
)
-
( 0.4
)
( 0.8
)
Balance at March 31, 2025
$
601.3
$
-
$
( 88.4
)
$
512.9
(1) Includes excise tax on Class A Share repurchases.
See accompanying notes to unaudited consolidated financial statements.
4
PART I—FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
Table of Contents
CONSOLIDATED S TATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended March 31,
2026
2025
(in millions)
Cash flows from operating activities
Net income
$
157.7
$
161.4
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation expense
58.5
51.5
Income from equity investments
( 3.2
)
( 3.4
)
Distributions from equity investments
4.7
4.9
Amortization of deferred financing costs
3.0
4.9
Equity-based compensation expense
0.2
0.3
Deferred income tax expense
28.2
22.9
Changes in assets and liabilities:
Accounts receivable – trade
( 0.2
)
( 0.4
)
Accounts receivable – affiliate
( 5.8
)
( 1.2
)
Other current and noncurrent assets
0.8
2.7
Accounts payable – trade
5.4
( 31.2
)
Accounts payable – affiliate
2.7
( 4.4
)
Accrued liabilities
10.5
3.4
Other current and noncurrent liabilities
( 9.2
)
( 9.0
)
Net cash provided by operating activities
253.3
202.4
Cash flows from investing activities
Additions to property, plant and equipment
( 28.8
)
( 45.5
)
Net cash used in investing activities
( 28.8
)
( 45.5
)
Cash flows from financing activities
Net proceeds from (repayments of) borrowings with maturities of 90
days or less
5.0
113.0
Borrowings with maturities of greater than 90 days:
Proceeds
-
800.0
Repayments
( 7.5
)
( 805.0
)
Deferred financing costs
-
( 11.4
)
Transaction costs
( 0.6
)
( 0.6
)
Share and unit repurchases
( 60.0
)
( 100.0
)
Distributions to shareholders
( 98.9
)
( 73.0
)
Distributions to noncontrolling interest
( 59.8
)
( 78.1
)
Net cash used in financing activities
( 221.8
)
( 155.1
)
Increase (decrease) in cash and cash equivalents
2.7
1.8
Cash and cash equivalents, beginning of period
1.9
4.3
Cash and cash equivalents, end of period
$
4.6
$
6.1
Supplemental disclosure of non-cash investing and financing activities:
(Increase) decrease in accrued capital expenditures and related liabilities
$
18.4
$
( 4.6
)
Recognition of deferred tax asset
$
( 1.1
)
$
137.8
See accompanying notes to unaudited consolidated financial statements.
5
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
Note 1. Basis of Presentation
Unless the context otherwise requires, references in this report to the “Company,” “we,” “our,” “us” or like terms, refer to Hess Midstream LP and its subsidiaries. References to “Sponsor” or “Sponsors” refer to (a) Hess Corporation (“Hess”) and GIP II Blue Holding, L.P. (“GIP”) when referring to periods prior to May 30, 2025, (b) Hess from May 30, 2025 to July 17, 2025, and (c) Chevron from July 18, 2025.
As used in this report, the term “Chevron” may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
The consolidated financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our consolidated financial position at March 31, 2026 and December 31, 2025, the consolidated results of operations and cash flows for the three months ended March 31, 2026 and 2025. The Company has no items of other comprehensive income (loss); therefore, net income (loss) is equal to comprehensive income (loss). The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year.
The consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted from these interim consolidated financial statements. These financial statements, therefore, should be read in conjunction with the financial statements and related notes included in the Company’s annual report on Form 10‑K for the year ended December 31, 2025.
We consolidate the activities of Hess Midstream Operations LP (the “Partnership”), as a variable interest entity (“VIE”) under GAAP. We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power, through our ownership, to direct those activities that most significantly impact the economic performance of the Partnership. This conclusion was based on a qualitative analysis that considered the Partnership’s governance structure and the delegation of control provisions, which provide us with the ability to control the operations of the Partnership. All financial statement activities associated with the VIE are captured within gathering, processing and storage, and terminaling and export segments (see Note 10, Segments ). We currently do not have any independent assets or operations other than our interest in the Partnership. At March 31, 2026, our noncontrolling interest represented an approxim ate 37.7 % interest in the Partnership retained by our Sponsor (December 31, 2025: 37.7 % ). See Note 2, Equity Transactions for more details.
New Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of income statement expenses. This ASU requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The ASU is effective for public business entities for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this new ASU on our consolidated financial statements.
Note 2. Equity Transactions
Equity Offering Transactions
On February 12, 2025, GIP sold an aggregate of 11,000,000 of our Class A shares representing limited partner interests in the Company (the “Class A Shares”) in an underwritten public offering at a price of $ 39.45 per Class A Share, less underwriting discounts. GIP also granted the underwriter an option to purchase up to an additional 1,650,000 Class A Shares at the same price per Class A Share, which was exercised in full on February 19, 2025. GIP received net proceeds from the offering of approximately $ 494.7 million, after deducting underwriting discounts.
6
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
The Company did no t receive any proceeds in the above equity offering transaction. The above equity offering transaction was conducted pursuant to a registration rights agreement among us and the Sponsors. The Class A Shares sold in the offering were obtained by GIP by exchanging to us a corresponding number of Class B units representing limited partner interests in the Partnership (the “Class B Units”) held by GIP, together with an equal number of Class B shares representing limited partner interests in the Company (the “Class B Shares”) held by the Company’s general partner at the time. As a result, the total number of the Company’s Class A Shares and Class B Shares did not change. The Company retained control in the Partnership based on the delegation of control provisions, as described in Note 1, Basis of Presentation . As a result of the equity offering transaction described above, we recognized adjustments decreasing the carrying amount of the Class A shareholders’ capital balance by $ 16.9 million during the three months ended March 31, 2025 and increasing the carrying amount of noncontrolling interest by an equal amount to reflect the change in ownership interest.
Class B Unit Repurchases
On January 13, 2025, the Company, the Partnership and our Sponsors entered into a unit repurchase agreement, pursuant to which the Partnership agreed to purchase from the Sponsors 2,572,677 Class B Units for an aggregate purchase price of approximately $ 100.0 million. The repurchase transaction was consummated on January 15, 2025. The purchase price per Class B Unit was $ 38.87 , the closing price of the Class A Shares on January 13, 2025.
On March 2, 2026, the Company, the Partnership and our Sponsor entered into a unit repurchase agreement, pursuant to which the Partnership agreed to purchase from the Sponsor 455,811 Class B Units for an aggregate purchase price of approximately $ 18.0 million. The repurchase transaction was consummated on March 4, 2026. The purchase price per Class B Unit was $ 39.49 , the closing price of the Class A Shares on March 2, 2026.
Pursuant to the terms of the unit repurchase agreements described above, immediately following each purchase of the Class B Units from the Sponsors, the Partnership cancelled the repurchased units, and the Company cancelled, for no consideration, an equal number of its Class B Shares.
Accelerated Share Repurchases
In the first quarter of 2026 , we repurchased $ 42.0 million of our publicly traded Class A Shares through an accelerated share repurchase (“ASR”) transaction with a financial institution. Under the terms of the ASR, we paid $ 42.0 million in cash to the financial institution and received 1,065,724 Class A Shares as determined by the average of the daily volume-weighted average prices of Class A Shares during the term of the transaction.
Following the settlement of the ASR transaction, the Company cancelled the repurchased Class A Shares, and the Partnership cancelled, for no consideration, an equal number of its Class A units representing limited partner interests in the Partnership.
The Class B Unit repurchase and ASR transactions described above were funded using borrowings under the Partnership’s existing revolving credit facility (see Note 5, Debt and Interest Expense ).
The Class B Unit repurchase and ASR transactions were accounted for in accordance with Accounting Standards Codification 810, whereby changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary are accounted for as equity transactions. The carrying amounts of the noncontrolling interest were adjusted to reflect the changes in the ownership interest with the difference between the amounts of consideration paid and the amounts by which the noncontrolling interest were adjusted recognized as a reduction in equity attributable to Class A shareholders.
As a result of the transactions described above, we recognized a direct reduction to deferred tax asset of $ 1.1 million (three months ended March 31, 2025: an addition to deferred tax asset of $ 137.8 million) related to the change in the temporary difference between the carrying amount and the tax basis of our investment in the Partnership. The effect of recognizing the changes in deferred tax asset was included in Class A shareholders’ equity balance in the accompanying unaudited consolidated statement of changes in partners’ capital (deficit) due to the transactions being characterized as transactions among or with shareholders.
7
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
Note 3. Related Party Transactions
In addition to the Class B Unit repurchase transactions and distributions to the Sponsors disclosed elsewhere in the Notes to consolidated financial statements, we had the following related party transactions:
Commercial Agreements
We have long-term fee-based commercial agreements with certain subsidiaries of Chevron to provide (i) gas gathering, (ii) crude oil gathering, (iii) gas processing and fractionation, (iv) storage services, (v) terminaling and export services, and (vi) water handling services.
For the services performed under these commercial agreements, we receive a fee per barrel of crude oil, barrel of water, Mcf of natural gas, or Mcf equivalent of natural gas liquids (“NGLs”), as applicable, delivered during each month, and Chevron is obligated to provide us with minimum volumes of crude oil, water, natural gas and NGLs. Minimum volume commitments (“MVCs”) are equal to 80 % of Chevron’s nominations in each development plan that apply on a three-year rolling basis such that MVCs are set for the three years following the most recent nomination. Without our consent, the MVCs resulting from the nominated volumes for any quarter or year contained in any prior development plan cannot be reduced by any updated development plan unless dedicated production is released by us. The applicable MVCs may, however, be increased as a result of the nominations contained in any such updated development plan. If Chevron fails to deliver its applicable MVCs during any quarter, then Chevron will pay us a shortfall fee equal to the volume of the deficiency multiplied by the applicable fee.
Except for the water services agreements and except for a certain gathering sub-system as described below, each of our commercial agreements with Chevron had an initial 10 -year term effective January 1, 2014 (“Initial Term”). For this gathering sub-system, the Initial Term is 15 years effective January 1, 2014 and for the water services agreements the Initial Term is 14 years effective January 1, 2019. Each of our commercial agreements other than our storage services agreement includes an inflation escalator capped at 3 % in any calendar year and a fee recalculation mechanism that allows fees to be adjusted annually during the Initial Term for updated estimates of cumulative throughput volumes and our capital and operating expenditures in order to target a return on capital deployed over the Initial Term of the applicable commercial agreement (or, with respect to the crude oil services fee under our terminal and export services agreement, the 20 -year period commencing on the effective date of the agreement).
For certain crude oil gathering, terminaling, storage, gas processing and gas gathering commercial agreements with Chevron, we exercised our renewal options to extend each of these commercial agreements for one additional 10 -year term (“Secondary Term”) effective January 1, 2024 through December 31, 2033. There were no changes to any provisions of the existing commercial agreements as a result of the exercise of the renewal options. For the remaining gathering sub-system, the Secondary Term is 5 years, and for the water services agreements the Secondary Term is 10 years, and we have the sole option to renew these remaining agreements for their Secondary Term that is exercisable at a later date. Upon the expiration of the Secondary Term, if any, the agreements will automatically renew for subsequent one-year periods unless terminated by either party no later than 180 days prior to the end of the applicable Secondary Term.
8
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
Consistent with the existing terms of the commercial agreements, during the Secondary Term of each of our commercial agreements other than our storage services agreement and terminal and export services agreement (with respect to crude oil terminaling services), the fee recalculation model under each applicable agreement is replaced by an inflation-based fee structure. The initial fee for the first year of the Secondary Term is determined based on the average fees paid by Chevron under the applicable agreement during the last three years of the Initial Term (with such fees adjusted for inflation through the first year of the Secondary Term). For each year following the first year of the Secondary Term, the applicable fee is adjusted annually based on the percentage change in the consumer price index, provided that we may not increase any fee by more than 3 % in any calendar year solely by reason of an increase in the consumer price index, and no fee may ever be reduced below the amount of the applicable fee payable by Chevron in the prior year as a result of a decrease in the consumer price index. During the Secondary Term, MVCs continue to be set at 80 % of Chevron’s nominated volumes in each development plan set three years in advance. Except for the crude oil terminaling and water handling services, Chevron is entitled to receive a credit, calculated in barrels or Mcf, as applicable, with respect to the amount of any shortfall fee paid by Chevron and may apply such credit against any volumes delivered to us under the applicable agreement in excess of Chevron’s nominated volumes during any of the following four quarters after such credit is earned, after which time any unused credits will expire. The shortfall amounts received under MVCs during the Secondary Term (except for the crude oil terminaling and water handling services) are initially recorded as deferred revenue and recognized as revenue as the credits are utilized, expire, or when the likelihood of Chevron utilizing its remaining credits becomes remote .
At March 31, 2026, deferred revenue included in Accrued liabilities in the accompanying unaudited consolidated balance sheet was $ 15.7 million (December 31, 2025: $ 6.4 million ).
For the three months ended March 31, 2026 and 2025 , approximately 96 % and 98 % , respectively, of our revenues were attributable to our fee‑based commercial agreements with Chevron, including revenues from third‑party volumes contracted with Chevron and delivered to us under these agreements. Together with Chevron, we are pursuing strategic relationships with third‑party producers and other midstream companies with operations in the Bakken in order to maximize our utilization rates.
Revenues from contracts with customers, including affiliate services and third-party services, on a disaggregated basis are as follows:
Three Months Ended March 31,
2026
2025
(in millions)
Affiliate services
Oil and gas gathering services
$
166.3
$
171.5
Processing and storage services
139.1
143.6
Terminaling and export services
36.1
29.5
Water gathering and disposal services
31.6
29.7
Total affiliate services
$
373.1
$
374.3
Third-party services
15.6
6.7
Total revenues from contracts with customers
$
388.7
$
381.0
Other income
1.4
1.0
Total revenues
$
390.1
$
382.0
The following table presents third-party pass-through costs for which we recognize revenues in an amount equal to the costs. These pass-through revenues are included in Affiliate services, and the related pass-through costs are included in Operating and maintenance expenses in the accompanying unaudited consolidated statements of operations.
Three Months Ended March 31,
2026
2025
(in millions)
Electricity and other related fees
$
17.4
$
14.5
Produced water trucking and disposal costs
13.2
10.1
Total
$
30.6
$
24.6
9
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
Omnibus and Employee Secondment Agreements
Under our omnibus and employee secondment agreements, Chevron provides substantial operational and administrative services to us in support of our assets and operations. For the three months ended March 31, 2026 and 2025, we had the following charges from Chevron included in Operating and maintenance expenses and General and administrative expenses in the accompanying unaudited consolidated statements of operations. The classification of these charges between operating and maintenance expenses and general and administrative expenses is based on the fundamental nature of the services being performed for our operations.
Three Months Ended March 31,
2026
2025
(in millions)
Operating and maintenance expenses
$
17.1
$
24.9
General and administrative expenses
5.8
5.0
Total
$
22.9
$
29.9
LM4 Agreements
Separately from our commercial agreements with Chevron, we entered into a gas processing agreement with Little Missouri 4 (“LM4”), a 50 / 50 joint venture with Targa Resources Corp., under which we pay a processing fee per Mcf of natural gas and reimburse LM4 for our proportionate share of electricity costs. These processing fees are included in Operating and maintenance expenses in the accompanying unaudited consolidated statements of operations. In addition, we share profits and losses and receive distributions from LM4 under the LM4 amended and restated limited liability company agreement based on our ownership interest. For the three months ended March 31, 2026 and 2025, we had the following activity related to our agreements with LM4:
Three Months Ended March 31,
2026
2025
(in millions)
Processing fee incurred
$
10.0
$
8.3
Earnings from equity investments
3.2
3.4
Distributions received from equity investments
4.7
4.9
Note 4. Accrued Liabilities
Accrued liabilities are as follows:
March 31, 2026
December 31, 2025
(in millions)
Accrued interest
$
40.3
$
37.8
Deferred revenue
15.7
6.4
Accrued capital expenditures
4.7
16.3
Other accruals
27.8
28.9
Total
$
88.5
$
89.4
10
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
Note 5. Debt and Interest Expense
At March 31, 2026, the carrying value of our total debt was $ 3,772.0 million. Excluding deferred issuance costs, our total borrowings at March 31, 2026 consisted of $ 3,100.0 million outstanding under our fixed-rate senior unsecured notes, $ 343.0 million drawn and outstanding under our $ 1.0 billion five-year revolving credit facility and $ 355.0 milli on outstanding under our $ 400.0 million five-year Term Loan A facility. The revolving credit facility and the Term Loan A facility mature in July 2027 .
At March 31, 2026, the fair value of our total debt was approximately $ 3,789.0 million, based on Level 2 inputs in the fair value measurement hierarchy. The carrying value of the amounts under the Term Loan A facility and the revolving credit facility at March 31, 2026 , approximated their fair value. Any changes in interest rates do not impact cash outflows associated with fixed rate interest payments or settlement of debt principal, unless a debt instrument is repurchased prior to maturity.
Note 6. Partners’ Capital and Distributions
Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash, as defined in the partnership agreement, to shareholders of record on the applicable record date. The following table details the distributions declared and/or paid for the periods presented:
z
Period
Record Date
Distribution Date
Distribution per Class A Share
First Quarter 2025
May 8, 2025
May 14, 2025
$
0.7098
Second Quarter 2025
August 7, 2025
August 14, 2025
$
0.7370
Third Quarter 2025
November 6, 2025
November 14, 2025
$
0.7548
Fourth Quarter 2025
February 5, 2026
February 13, 2026
$
0.7641
First Quarter 2026 (1)
May 7, 2026
May 14, 2026
$
0.7792
(1) For more information, see Note 11, Subsequent Events.
Note 7. Earnings per Share
We calculate earnings per Class A Share as we do not have any other participating securities. Substantially all of income tax expense is attributed to earnings of Class A Shares reflective of our organizational structure. Class B Units of the Partnership together with the equal number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one -for-one basis. In addition, our restricted equity-based awards may have a dilutive effect on our earnings per share. Diluted earnings per Class A Share are calculated using the “treasury stock method” or “if-converted method,” whichever is more dilutive.
Three Months Ended March 31,
(in millions, except per share amounts)
2026
2025
Net income
$
157.7
$
161.4
Less: Net income attributable to noncontrolling interest
70.1
89.8
Net income attributable to Hess Midstream LP
87.6
71.6
Net income attributable to Hess Midstream LP
per Class A share:
Basic:
$
0.68
$
0.65
Diluted:
$
0.68
$
0.65
Weighted average Class A shares outstanding:
Basic:
129.2
110.7
Diluted:
129.2
110.8
For the three months ended March 31, 2026 and 2025 , we did not have any material dilutive restricted shares.
Note 8. Concentration of Credit Risk
As of both March 31, 2026 and December 31, 2025, Chevron and its affiliates represented approximately 96 % of accounts receivable from contracts with customers. Total revenues attributable to Chevron for the three months ended March 31, 2026 and 2025 were 96 % and 98 % , respectively .
11
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
Note 9. Commitments and Contingencies
Environmental Contingencies
The Company is subject to federal, state and local laws and regulations relating to the environment. As of March 31, 2026 our reserves for all estimated remediation liabilities were $ 2.0 million in Accrued liabilities and $ 0.9 millio n in Other noncurrent li abilities , each in the accompanying unaudited consolidated balance sheet, compared with $ 1.4 million and $ 0.9 million, respectively, as of December 31, 2025.
Legal Proceedings
In the ordinary course of business, the Company is from time to time party to various judicial and administrative proceedings. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of a known contingency, we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued.
Based on currently available information, we believe it is remote that the outcome of known matters would have a material adverse impact on our financial condition, results of operations or cash flows. Accordingly, as of March 31, 2026 and December 31, 2025 , we did no t have material accrued liabilities for legal contingencies.
Note 10. Segments
Our operations are located in the United States and are organized into three reportable segments: (1) gathering, (2) processing and storage and (3) terminaling and export. Our reportable segments comprise the structure used by our Chief Executive Officer and Chief Financial Officer , who, collectively, have been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. Interest and Other includes certain functional departments that do not recognize revenues.
Our CODM evaluates the segments’ operating performance based on Adjusted EBITDA, defined as net income (loss) before net interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non-cash and non‑recurring items, if applicable. For all of the segments, the CODM uses segment Adjusted EBITDA in the annual budgeting and monthly forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for Adjusted EBITDA on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.
12
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
The following tables reflect certain financial data for each reportable segment:
Gathering
Processing and Storage
Terminaling and Export
Total Reportable Segments
Interest and Other
Consolidated
(in millions)
For the Three Months Ended March 31, 2026
Revenues and other income
$
204.1
$
148.4
$
37.6
$
390.1
$
-
$
390.1
Operating and maintenance expenses
(exclusive of depreciation shown
separately below)
49.7
29.3
6.6
85.6
-
85.6
Depreciation expense
37.7
16.4
4.4
58.5
-
58.5
General and administrative expenses
4.1
1.4
0.3
5.8
2.1
7.9
Income from equity investments
-
3.2
-
3.2
-
3.2
Interest expense, net
-
-
-
-
55.4
55.4
Income tax expense
-
-
-
-
28.2
28.2
Adjusted EBITDA
150.3
120.9
30.7
301.9
Capital expenditures
5.8
4.6
-
10.4
Gathering
Processing and Storage
Terminaling and Export
Total Reportable Segments
Interest and Other
Consolidated
(in millions)
For the Three Months Ended March 31, 2025
Revenues and other income
$
203.6
$
147.8
$
30.6
$
382.0
$
-
$
382.0
Operating and maintenance expenses
(exclusive of depreciation shown
separately below)
50.4
27.7
7.5
85.6
-
85.6
Depreciation expense
32.4
14.7
4.4
51.5
-
51.5
General and administrative expenses
3.0
1.7
0.3
5.0
2.5
7.5
Income from equity investments
-
3.4
-
3.4
-
3.4
Interest expense, net
-
-
-
-
56.4
56.4
Income tax expense
-
-
-
-
23.0
23.0
Adjusted EBITDA
150.2
121.8
22.8
294.8
Capital expenditures
47.7
2.4
-
50.1
The following table presents a reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:
Three Months Ended March 31,
(in millions)
2026
2025
Reconciliation of reportable segment Adjusted
EBITDA to income before income tax expense:
Total reportable segment Adjusted EBITDA
$
301.9
$
294.8
Less:
Depreciation expense
58.5
51.5
Unallocated general and administrative expenses
2.1
2.5
Interest expense, net
55.4
56.4
Income before income tax expense
$
185.9
$
184.4
13
PART I – FINANCIAL INFORMATION (CONT’D)
HESS MIDSTREAM LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Table of Contents
Total assets for the reportable segments are as follows:
March 31, 2026
December 31, 2025
(in millions)
Gathering
$
2,386.3
$
2,413.7
Processing and Storage (1)
949.7
962.8
Terminaling and Export
228.9
230.8
Total reportable segments assets
3,564.9
3,607.3
Interest and Other
752.3
781.0
Total consolidated assets
$
4,317.2
$
4,388.3
(1) Includes investment in equity investees of $ 80.0 million as of March 31, 2026 and $ 81.5 million as of December 31, 2025 .
Note 11. Subsequent Events
On April 27, 2026 , the board of directors of our general partner declared a quarterly cash distribution of $ 0.7792 per Class A Share for the quarter ended March 31, 2026. The distribution represents an increase of $ 0.0151 per Class A Share for the first quarter of 2026 as compared with the fourth quarter of 2025. The distribution will be payable on May 14, 2026 , to shareholders of record as of the close of business on May 7, 2026 . Simultaneously, the Partnership will make a distribution of $ 0.7792 per Class B Unit of the Partnership to our Sponsor.
14
PART I – FINANCIAL INFORMATION (CONT’D)
Table of Contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.