Hess Midstream Raises 2026 Free Cash Flow Guidance to $910-$960 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 04 2026
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Hess Midstream now expects total capital expenditures of approximately $105 million in 2026. Hess Midstream no longer expects to pay income tax in 2026 and does not expect to pay material income taxes until after 2028 as a result of the recently issued Additional Interim Guidance Regarding the Application of the Corporate Alternative Minimum Tax. As a result, Hess Midstream is increasing its full year 2026 Adjusted Free Cash Flow guidance to $910 - $960 million and expects approximately $280 million Adjusted Free Cash Flow after Distributions at the midpoint of the updated guidance range after funding distributions that are targeted to grow at least 5% per annum on a distribution per Class A share basis. Hess Midstream continues to expect to generate approximately $1 billion of Adjusted Free Cash Flow after Distributions through 2028 that is expected to be available for incremental shareholder returns and debt repayment.
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Analyst Views on HESM
Wall Street analysts forecast HESM stock price to fall
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 38.180
Low
34.00
Averages
36.50
High
39.00
Current: 38.180
Low
34.00
Averages
36.50
High
39.00
About HESM
Hess Midstream LP is a midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to the Company and third-party customers. It owns oil, gas and produces water handling assets that are located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. Its gathering segment includes Hess North Dakota Pipeline Operations LP and Hess Water Services Holdings LLC, which owns natural gas gathering and compression, crude oil gathering, and produced water gathering and disposal. Its processing and storage segment includes Hess TGP Operations LP and Hess Mentor Storage Holdings LLC, which owns Tioga gas plant, an equity investment in LM4 Joint Venture, and mentor storage terminal. Its terminaling and export segment includes Hess North Dakota Export Logistics Operations LP, which owns Ramberg Terminal Facility, Tioga Rail Terminal, Crude Oil Rail Cars, Johnson's Corner Header System, and other DAPL connections.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- CBRE Strong Fundamentals but Price Decline: CBRE's recent quarter saw a 19% YoY revenue increase to $10.5 billion and an 81% rise in core EPS to $1.61, yet the stock fell below its 200-day moving average due to market fears about long-term interest rates, indicating a divergence between fundamentals and market sentiment.
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- Market Sentiment Impacting Stock Prices: The performance of all three stocks has been influenced by shifts in market sentiment and macroeconomic changes, emphasizing the need for investors to adapt and adjust their strategies in a high-volatility environment.
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Hess Midstream Reports Increased Q1 Earnings
- Earnings Growth: Hess Midstream LP reported a first-quarter profit of $87.6 million, translating to earnings per share of $0.68, which marks an increase from last year's $71.6 million and $0.65 per share, indicating improved profitability.
- Revenue Increase: The company's revenue rose to $390.1 million for the quarter, up 2.1% from $382.0 million last year, reflecting stable performance and ongoing customer demand in the market.
- Financial Health Indicators: The increase in both earnings and revenue compared to last year suggests improvements in operational efficiency and market competitiveness, potentially attracting more investor interest.
- Optimistic Market Outlook: With the growth in earnings and revenue, Hess Midstream may gain greater development opportunities in the future market environment, enhancing its strategic position in the energy infrastructure sector.
See More
Hess Midstream Q1 2026 Earnings Call Highlights
- Capital Expenditure Reduction: Hess Midstream has lowered its 2026 capital expenditure forecast from $150 million to approximately $100 million, a reduction of one-third, reflecting strategic optimization driven by upstream efficiency improvements and longer lateral technology, which is expected to enhance future free cash flow.
- Free Cash Flow Guidance Increase: The company has raised its adjusted free cash flow guidance for 2026 to between $910 million and $960 million, representing a year-over-year increase of about 20%, which will provide stronger funding support for shareholder returns and debt repayment, indicating an improvement in financial health.
- First Quarter Performance: For Q1 2026, net income was $158 million with adjusted EBITDA of $300 million, although down from the previous quarter, the company maintained an 83% gross adjusted EBITDA margin, demonstrating ongoing efforts in cost control and operational efficiency.
- Future Outlook: The company expects full-year 2026 net income to range between $650 million and $700 million, with adjusted EBITDA projected between $1.225 billion and $1.275 billion; despite planned maintenance impacts in Q2, management is confident in a recovery in the second half of the year, reflecting strong market demand.
See More
Hess Midstream Reports Q1 2026 Financial Highlights
- Net Income Performance: Hess Midstream reported a net income of $157.7 million in Q1 2026, slightly down from $161.4 million in Q1 2025, indicating the company's resilience amidst market challenges despite overall revenue fluctuations.
- Cash Flow and EBITDA: The net cash provided by operating activities was $253.3 million, with Adjusted EBITDA at $299.8 million, demonstrating ongoing improvements in cash flow management and profitability, which support future shareholder returns and debt repayment.
- Share Buyback Program: The company completed a $42 million repurchase of Class A shares and an $18 million repurchase of Class B units, further reducing the number of shares outstanding and enhancing earnings per share, reflecting the company's commitment to shareholder value.
- Dividend Increase: Hess Midstream raised its cash distribution for Class A shares to $0.7792 per share for Q1 2026, an increase of $0.0151 compared to Q4 2025, showcasing the company's dedication to returning value to shareholders based on sustained profitability.
See More
Hess Midstream Q1 Earnings Beat Expectations, Adjusted Cash Flow Guidance Raised
- Strong Earnings Report: Hess Midstream LP reported a Q1 GAAP EPS of $0.68, beating expectations by $0.03, indicating robust performance that is likely to positively impact stock prices.
- Revenue Growth: The company achieved Q1 revenue of $390.1 million, reflecting a 2.1% year-over-year increase and surpassing market expectations by $0.59 million, demonstrating sustained business growth and boosting investor confidence.
- Capital Expenditure Guidance Update: Hess Midstream updated its 2026 capital expenditures guidance to approximately $105 million, anticipating an increase in adjusted free cash flow to between $910 million and $960 million due to lower capital spending and deferral of income tax payments, enhancing financial flexibility.
- Performance Outlook Reaffirmed: The company reaffirmed its throughput, net income, and adjusted EBITDA guidance for 2026, projecting net income between $650 million and $700 million and adjusted EBITDA between $1.225 billion and $1.275 billion, reflecting confidence in future performance.
See More
HESS MIDSTREAM Q1 REVENUE REACHES USD 390.1 MILLION, EXCEEDING IBES ESTIMATE OF USD 389.5 MILLION
- Revenue Comparison: HESS reported Q1 revenue of USD 390.1 million, surpassing IBE's estimate of USD 389.5 million.
- Financial Performance: The revenue figures indicate a strong performance by HESS in the first quarter compared to industry estimates.
See More
Analysis of the Best Stocks in the Market
- AT&T Stock Underperformance: AT&T has dropped 20% since March despite reporting new subscriber growth, as market concerns over capital expenditures and debt pressures highlight the risks of high leverage and heavy investment environments.
- CBRE Strong Fundamentals but Price Decline: CBRE's recent quarter saw a 19% YoY revenue increase to $10.5 billion and an 81% rise in core EPS to $1.61, yet the stock fell below its 200-day moving average due to market fears about long-term interest rates, indicating a divergence between fundamentals and market sentiment.
- Chevron's Volatile Performance: Although Chevron's Q1 production rose 15% YoY and returned $6 billion to shareholders, earnings fell YoY due to softening crude prices, leading to a breach of its 200-day moving average, raising concerns about its future profitability.
- Market Sentiment Impacting Stock Prices: The performance of all three stocks has been influenced by shifts in market sentiment and macroeconomic changes, emphasizing the need for investors to adapt and adjust their strategies in a high-volatility environment.
See More
Hess Midstream Reports Increased Q1 Earnings
- Earnings Growth: Hess Midstream LP reported a first-quarter profit of $87.6 million, translating to earnings per share of $0.68, which marks an increase from last year's $71.6 million and $0.65 per share, indicating improved profitability.
- Revenue Increase: The company's revenue rose to $390.1 million for the quarter, up 2.1% from $382.0 million last year, reflecting stable performance and ongoing customer demand in the market.
- Financial Health Indicators: The increase in both earnings and revenue compared to last year suggests improvements in operational efficiency and market competitiveness, potentially attracting more investor interest.
- Optimistic Market Outlook: With the growth in earnings and revenue, Hess Midstream may gain greater development opportunities in the future market environment, enhancing its strategic position in the energy infrastructure sector.
See More
Hess Midstream Q1 2026 Earnings Call Highlights
- Capital Expenditure Reduction: Hess Midstream has lowered its 2026 capital expenditure forecast from $150 million to approximately $100 million, a reduction of one-third, reflecting strategic optimization driven by upstream efficiency improvements and longer lateral technology, which is expected to enhance future free cash flow.
- Free Cash Flow Guidance Increase: The company has raised its adjusted free cash flow guidance for 2026 to between $910 million and $960 million, representing a year-over-year increase of about 20%, which will provide stronger funding support for shareholder returns and debt repayment, indicating an improvement in financial health.
- First Quarter Performance: For Q1 2026, net income was $158 million with adjusted EBITDA of $300 million, although down from the previous quarter, the company maintained an 83% gross adjusted EBITDA margin, demonstrating ongoing efforts in cost control and operational efficiency.
- Future Outlook: The company expects full-year 2026 net income to range between $650 million and $700 million, with adjusted EBITDA projected between $1.225 billion and $1.275 billion; despite planned maintenance impacts in Q2, management is confident in a recovery in the second half of the year, reflecting strong market demand.
See More
Hess Midstream Reports Q1 2026 Financial Highlights
- Net Income Performance: Hess Midstream reported a net income of $157.7 million in Q1 2026, slightly down from $161.4 million in Q1 2025, indicating the company's resilience amidst market challenges despite overall revenue fluctuations.
- Cash Flow and EBITDA: The net cash provided by operating activities was $253.3 million, with Adjusted EBITDA at $299.8 million, demonstrating ongoing improvements in cash flow management and profitability, which support future shareholder returns and debt repayment.
- Share Buyback Program: The company completed a $42 million repurchase of Class A shares and an $18 million repurchase of Class B units, further reducing the number of shares outstanding and enhancing earnings per share, reflecting the company's commitment to shareholder value.
- Dividend Increase: Hess Midstream raised its cash distribution for Class A shares to $0.7792 per share for Q1 2026, an increase of $0.0151 compared to Q4 2025, showcasing the company's dedication to returning value to shareholders based on sustained profitability.
See More
Hess Midstream Q1 Earnings Beat Expectations, Adjusted Cash Flow Guidance Raised
- Strong Earnings Report: Hess Midstream LP reported a Q1 GAAP EPS of $0.68, beating expectations by $0.03, indicating robust performance that is likely to positively impact stock prices.
- Revenue Growth: The company achieved Q1 revenue of $390.1 million, reflecting a 2.1% year-over-year increase and surpassing market expectations by $0.59 million, demonstrating sustained business growth and boosting investor confidence.
- Capital Expenditure Guidance Update: Hess Midstream updated its 2026 capital expenditures guidance to approximately $105 million, anticipating an increase in adjusted free cash flow to between $910 million and $960 million due to lower capital spending and deferral of income tax payments, enhancing financial flexibility.
- Performance Outlook Reaffirmed: The company reaffirmed its throughput, net income, and adjusted EBITDA guidance for 2026, projecting net income between $650 million and $700 million and adjusted EBITDA between $1.225 billion and $1.275 billion, reflecting confidence in future performance.
See More
HESS MIDSTREAM Q1 REVENUE REACHES USD 390.1 MILLION, EXCEEDING IBES ESTIMATE OF USD 389.5 MILLION
- Revenue Comparison: HESS reported Q1 revenue of USD 390.1 million, surpassing IBE's estimate of USD 389.5 million.
- Financial Performance: The revenue figures indicate a strong performance by HESS in the first quarter compared to industry estimates.
See More
