HESM Earnings Prediction
The chart below shows how HESM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HESM sees a -0.46% change in stock price 10 days leading up to the earnings, and a -0.60% change 10 days following the report. On the earnings day itself, the stock moves by -0.50%. This data can give you a slight idea of what to expect for the next quarter's release.
HESM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
395.90M
11.05%
4.60%
Gross Margin
--
--
--
Operating Margin
61.38%
4.16%
0.26%
Net Margin
43.47%
1.42%
-0.09%
EPS
0.68
23.64%
7.94%
No Data Available
HESM Earnings Analysis
Hess Midstream LP Corporation (HESM.N) Earnings Conference Call
Positive
Gas Processing Growth: 14% year over year growth in gas processing throughputs, indicating strong operational performance.
Adjusted EBITDA Growth: Full year adjusted EBITDA of $1,136,000,000 for 2024, representing a growth of approximately 12% from 2023.
2025 EBITDA Projections: Projected adjusted EBITDA for 2025 is expected to increase by 11% at the midpoint compared to 2024, with a range of $1,235,000,000 to $1,285,000,000.
Shareholder Return Commitment: Since the beginning of 2021, $1,950,000,000 has been returned to shareholders through accretive repurchases, demonstrating a strong commitment to shareholder returns.
Class A Share Distribution Growth: Distribution per Class A share has increased by approximately 55% since 2021, with over 10% growth in 2024, highlighting effective capital allocation strategies.
Negative
Projected Net Income Decline: For Q1 2025, net income is projected to be approximately $160 million to $170 million, reflecting a decrease from Q4 2024 due to severe winter weather impacts, indicating potential operational challenges ahead.
Q1 2025 Adjusted EBITDA Decline: Adjusted EBITDA for Q1 2025 is expected to be approximately $285 million to $295 million, which is lower than Q4 2024's adjusted EBITDA of $298 million, highlighting a decline in operational performance due to weather-related disruptions.
2025 Volume Guidance Decline: Full year 2025 guidance anticipates lower volumes compared to Q4 2024, with gas processing volumes expected to average between 455 million and 465 million cubic feet per day, indicating a slowdown in growth momentum.
Adjusted EBITDA Projections: The anticipated full year adjusted EBITDA for 2025 is projected to be between $1,235 million and $1,285 million, which, while showing growth, reflects a significant reliance on Hess' development activity and third-party volumes, raising concerns about sustainability.
Gas Plant Maintenance Impact: The planned maintenance at the Tioga Gas Plant in 2027 is expected to temporarily reduce gas volumes by approximately 10 million cubic feet per day, which could negatively impact overall throughput and revenue generation.
HESM FAQs
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HESM Earning Call Sentiment
Earnings call transcript: Hess Midstream Q4 2024 earnings beat expectations
HESM.N
-0.23%Positive
The earnings call shows strong financial performance with record high revenue, increased EBITDA, and positive guidance for 2025. The company maintains a high shareholder return yield and low leverage ratio. Despite some vague responses in the Q&A, particularly about M&A and weather impacts, the overall financial health and strategic growth plans, including significant capital expenditures, suggest a positive market reaction. Given the market cap, the stock is likely to see a moderate positive movement in the next two weeks.
