Hess Midstream LP has revised its financial and operational guidance for 2025, 2026 and 2027. This update is based on an anticipated reduction in Bakken rig activity by Chevron, which will decrease from four to three drilling rigs starting in the fourth quarter of 2025, Hess Midstream said in a media release.
Hess Midstream said it continues to expect long-term growth in gas throughput volumes in the Bakken through at least 2027, while oil throughput volumes are now expected to plateau in 2026 as a result of lower planned rig activity. The company said it expects throughput volumes to generally stay above already-established minimum volume commitments.
The company earlier projected, for 2025, gas gathering of 475-485 million cubic feet per day (MMcfd), crude oil gathering of 120,000-130,000 barrels per day (bpd), gas processing of 455-465 MMcfd, crude terminal volumes of 130,000-140,000 bpd, and water gathering of 125,000-135,000 bpd.
In its latest update, Hess Mindstream said its full-year gas throughput guidance has been shifted based on adverse weather conditions and maintenance in the third quarter and lower expected third-party volumes in the fourth quarter. In 2025, full-year gas gathering volumes are now anticipated to average between 455 and 465 MMcd, and gas processing volumes are now expected to average between 440 and 450 MMcfd.
For the year ending December 31, 2025, the company earlier provided unaudited financial guidance with a net income projection of $685-735 million, and Adjusted EBITDA of $1,235-1,285 million. Capital expenditures are expected to be approximately $300 million, with adjusted free cash flow forecast to be between $725 million and $775 million.
Hess Midstream said that it now expects significantly lower capital spending in 2026 and 2027 based on the suspension of early engineering activities on the Capa gas plant and removal of the project from its forward plan.
Hess Midstream expects continued adjusted EBITDA growth in 2027 and lower capital expenditures in 2026 and 2027. It expects continued adjusted free cash flow growth through 2027, supporting its return of capital framework that continues to include targeted annual distribution per Class A share growth of at least 5 percent through 2027 and financial flexibility for incremental return of capital, including potential share repurchases.
Third quarter 2025 net income and adjusted EBITDA are expected at the lower end of the previously announced guidance range, and full year 2025 net income and adjusted EBITDA are expected to be within the lower half of the previously announced guidance range.
“Hess Midstream’s strategy continues to focus on delivering differentiated cash flow stability and balance sheet strength that supports consistent and ongoing return of capital to shareholders”, Jonathan Stein, Chief Executive Officer of Hess Midstream, said.
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