Hess Midstream (HESM) Q4 2025 Earnings Transcript

Lo que extrajimos de esta fuente

The claims Via News extracted from this document. We point to the source; we don't replace it.

• Longer lateral wells not only improve economics and breakevens but produce same volume with fewer wells, reducing well connect capital requirements

  80% confidence

• Conservative financial strategy is consistent with volume profile and Chevron's target of 200,000 barrels of oil per day plateau production in the Bakken

  80% confidence

• Revenues approximately 95% protected by minimum volume commitments (MVCs) on full-year basis in 2026

  80% confidence

• In 2025, Hess Midstream continued record of strong performance execution, completing multiyear projects on time and on budget

  80% confidence

• Gross adjusted EBITDA margin for Q4 2025 was approximately 83%, above the 75% target

  80% confidence

• MVCs provide a floor at 95% coverage in 2026, translating to 90% in 2027, protecting revenues if production were lower

  80% confidence

• Capital spending expected to decrease 40% in 2026 to approximately $150 million

  80% confidence

• Company expects to naturally delever below 3x leverage in the next few years

  80% confidence

• Adjusted free cash flow expected to reach $850-900 million in 2026, representing 12% growth over 2025

  80% confidence

• Chevron targets 200,000 barrels of oil equivalent per day plateau production in the Bakken

  80% confidence

• 2025 delivered strong results with full-year net income of approximately $685 million and adjusted EBITDA of $1.238 billion, representing 9% growth from 2024

  80% confidence

• Capital spending expected to decrease further to less than $75 million per year in 2027 and 2028

  80% confidence

Data points we hold from this source