Hess Midstream LP (NYSE:HESM) reported second-quarter 2026 results on Monday that came in ahead of Wall Street expectations, while reaffirming its full-year financial guidance despite lower throughput volumes across much of its business.
The stronger-than-expected earnings helped lift the company’s shares 2.87% in pre-market trading.
Earnings and Revenue Top Forecasts
Adjusted earnings per share came in at $0.75 for the second quarter, exceeding analysts’ consensus estimate of $0.69.
Revenue totaled $399 million, slightly ahead of the expected $396.46 million. However, sales declined 3.7% from $414.2 million recorded in the same quarter of 2025.
Net income for the period was $173.7 million, compared with $179.7 million a year earlier.
Company Maintains Full-Year Guidance
Hess Midstream left its 2026 outlook unchanged, continuing to forecast adjusted EBITDA between $1.225 billion and $1.275 billion.
The company also reaffirmed adjusted free cash flow guidance of $910 million to $960 million for the full year.
During the quarter, adjusted EBITDA reached $313.7 million, while adjusted free cash flow totaled $231.6 million.
CEO Highlights Operational Execution
Chief Executive Officer Jonathan Stein said the company remained focused on operational efficiency and disciplined financial management.
“In the second quarter of 2026, we continued to progress our operational priorities, executing a safe and efficient maintenance program while delivering on our financial strategy,” said Jonathan Stein, Chief Executive Officer of Hess Midstream.
Lower Throughput Reflects Reduced Well Activity
Throughput volumes declined across several business segments during the quarter.
Oil terminaling volumes fell 15% year over year, while water gathering volumes decreased 12%, primarily reflecting lower production resulting from reduced new-well activity.
Gas processing volumes declined 4%, largely due to scheduled maintenance work at the Tioga Gas Plant.
Capital Spending Falls as Expansion Projects Wind Down
Capital expenditures declined significantly to $30.6 million from $70 million in the prior-year quarter, mainly because the company completed its gas compression capacity expansion projects.
The board also approved a quarterly cash distribution of $0.7888 per Class A share, an increase of $0.0096 from the previous quarter. The distribution is scheduled to be paid on August 14, 2026.
Hess Midstream stock price
