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Investing.com -- Hess Midstream LP (NYSE:HESM) reported second quarter earnings that exceeded analyst expectations, with EPS of $0.74 surpassing the consensus estimate of $0.66 and revenue of $414.2 million beating the expected $405.13 million.
The midstream energy company posted a 19.3% increase in net income to $179.7 million compared to $160.3 million in the same quarter last year. Revenue rose 13.3% YoY from $365.5 million. The company’s shares climbed 1.2% following the announcement.
Operational performance showed strong growth across all segments, with gas processing volumes up 7%, oil terminaling up 9%, and water gathering up 11% compared to the second quarter of 2024.
"Hess Midstream delivered strong operational and financial results in the second quarter, driven by upstream performance and high system availability," said John Gatling, President and Chief Operating Officer of Hess Midstream.
The company reaffirmed its full-year 2025 throughput and Adjusted EBITDA guidance of $1,235-$1,285 million, while updating its net income guidance to $685-$735 million. Hess Midstream also declared a quarterly cash distribution of $0.7370 per Class A share, representing an increase of $0.0272 per share compared to the previous quarter.
The company continues to target at least 5% annual distribution growth per Class A share through 2027 and expects to generate more than $1.25 billion in financial flexibility through 2027 for additional shareholder returns.
Notably, on July 18, 2025, Chevron Corporation (NYSE:CVX) completed its previously announced merger with Hess Corporation (NYSE:HES), indirectly acquiring approximately 37.8% interest in Hess Midstream on a consolidated basis.
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