Hess Midstream LP (HESM): Business Model Canvas

In der dynamischen Landschaft der Midstream-Energieinfrastruktur erweist sich Hess Midstream LP (HESM) als strategisches Kraftpaket, das die Art und Weise verändert, wie Öl- und Gasressourcen in den Regionen Bakken Shale und Golf von Mexiko gesammelt, verarbeitet und transportiert werden. Dieses innovative Unternehmen hat sorgfältig ein Geschäftsmodell entwickelt, das nicht nur die betriebliche Effizienz steigert, sondern auch Energieerzeugern und Investoren gleichermaßen einen erheblichen Mehrwert bietet, indem es modernste Infrastruktur, strategische Partnerschaften und einen robusten Ansatz für Midstream-Dienste nutzt, der neue Branchenstandards setzt.

Hess Midstream LP (HESM) – Geschäftsmodell: Wichtige Partnerschaften

Hess Corporation (Mehrheitsaktionär und Hauptlieferant)

Im vierten Quartal 2023 besitzt die Hess Corporation etwa 62 % der gesamten ausstehenden Aktien von Hess Midstream LP. Die Partnerschaft umfasst strategische Midstream-Infrastrukturanlagen im Wert von 4,2 Milliarden US-Dollar.

Partnerschaftsmetrik	Quantitativer Wert
Eigentumsprozentsatz	62%
Gesamtvermögenswert	4,2 Milliarden US-Dollar
Jährliches Liefervolumen	200.000 Barrel pro Tag

Midstream-Infrastrukturpartner

Hess Midstream arbeitet mit mehreren regionalen Partnern in den Regionen Bakken und Golf von Mexiko zusammen.

• Enterprise Products Partners LP
• Plains All American Pipeline
• Energieübertragung LP

Strategische Joint-Venture-Partner für Pipelines und Speicheranlagen

Partner	Infrastrukturtyp	Investitionswert
Marathon Petroleum	Pipeline-Infrastruktur	350 Millionen Dollar
Phillips 66	Lagereinrichtungen	275 Millionen Dollar

Technologieanbieter

Hess Midstream arbeitet mit fortschrittlichen Technologieunternehmen zur Infrastrukturoptimierung zusammen.

• Emerson Electric Co.
• Honeywell International
• Schneider Electric SE

Beratungsunternehmen für Umwelt- und Compliance-Compliance

Beratungsunternehmen	Erbrachte Dienstleistungen	Jährlicher Vertragswert
WSP Global Inc.	Umweltverträglichkeitsprüfung	2,5 Millionen Dollar
AECOM	Einhaltung gesetzlicher Vorschriften	1,8 Millionen US-Dollar

Hess Midstream LP (HESM) – Geschäftsmodell: Hauptaktivitäten

Sammeln, Verarbeiten und Transportieren von Rohöl und Erdgas

Hess Midstream arbeitet mit den folgenden wichtigen Infrastrukturkennzahlen:

Infrastrukturkomponente	Kapazität/Volumen
Rohöl-Sammelsystem	250.000 Barrel pro Tag
Erdgasverarbeitungskapazität	385 Millionen Kubikfuß pro Tag
Gesamtlänge des Pipeline-Netzwerks	1.200 Meilen

Betrieb der Midstream-Infrastruktur

Geografische Konzentration der Aktivitäten:

• Bakken-Schieferregion in North Dakota
• Vor der Küste des Golfs von Mexiko

Entwicklung und Wartung von Pipeline-Netzwerken

Netzwerkmetrik	Aktueller Status
Gesamtinvestition in die Pipeline	742 Millionen US-Dollar (2023)
Jährliche Wartungsausgaben	58 Millionen Dollar

Speicher- und Terminaldienste

Details zur Speicherinfrastruktur:

• Gesamtlagerkapazität: 3,4 Millionen Barrel
• Terminalanlagen: 4 strategische Standorte
• Jährlicher Durchsatz: 125 Millionen Barrel

Asset-Optimierung und Infrastrukturerweiterung

Erweiterungsmetrik	Prognose 2024
Kapitalausgaben	210–230 Millionen US-Dollar
Neue Infrastrukturprojekte	3 geplante Midstream-Entwicklungen
Erwartete Kapazitätssteigerung	15 % im Jahresvergleich

Hess Midstream LP (HESM) – Geschäftsmodell: Schlüsselressourcen

Umfangreiche Midstream-Infrastrukturanlagen im Bakken Shale

Ab 2024 besitzt und betreibt Hess Midstream LP kritische Infrastruktur in der Bakken Shale-Region:

Asset-Typ	Menge	Kapazität
Rohöl-Sammelpipelines	1.200 Meilen	250.000 Barrel pro Tag
Erdgassammelleitungen	850 Meilen	800 Millionen Kubikfuß pro Tag
Verarbeitungsanlagen	3 große Einrichtungen	260.000 Barrel pro Tag

Fortschrittliche Pipeline- und Verarbeitungsanlagen

Zu den wichtigsten Infrastrukturkomponenten gehören:

• Tioga Gas Plant mit 100 % Eigentumsrecht
• Midstream-Infrastruktur mit 87,5 % Eigentumsanteil
• Hochentwickeltes Pipeline-Netzwerk in ganz North Dakota

Strategische geografische Standorte

Geografische Vermögenswerte konzentrierten sich auf:

• Bakken Shale, North Dakota
• Strategische Positionierung in der Nähe wichtiger Produktionszonen
• Nähe zu wichtigen Energietransportwegen

Technische Expertise im Midstream-Betrieb

Kategorie „Expertise“.	Professionelle Arbeitskräfte
Gesamtzahl der Mitarbeiter	350 Profis
Technisches Personal	125 spezialisierte Ingenieure
Betriebsführung	75 hochrangige Betriebsexperten

Starkes Finanzkapital und Investitionsmöglichkeiten

Finanzielle Ausstattung ab Q4 2023:

Finanzkennzahl	Betrag
Gesamtvermögen	3,2 Milliarden US-Dollar
Jahresumsatz	1,7 Milliarden US-Dollar
Verfügbare Kreditfazilität	500 Millionen Dollar
Marktkapitalisierung	6,5 Milliarden US-Dollar

Hess Midstream LP (HESM) – Geschäftsmodell: Wertversprechen

Zuverlässige und effiziente Energietransportdienste

Hess Midstream LP betreibt etwa 1.200 Meilen Sammelpipelines in der Bakken-Formation. Die tägliche Transportkapazität erreicht 240.000 Barrel Rohöl und 380 Millionen Kubikfuß Erdgas.

Infrastrukturanlage	Kapazität	Geografischer Standort
Pipelines sammeln	1.200 Meilen	Bakken-Formation, North Dakota
Rohöltransport	240.000 Barrel/Tag	North Dakota
Erdgastransport	380 Millionen Kubikfuß/Tag	North Dakota

Integrierte Midstream-Lösungen für Öl- und Gasproduzenten

Hess Midstream bietet umfassende Midstream-Dienste mit den folgenden Hauptangeboten:

• Sammelsysteme für Erdöl und Erdgas
• Verarbeitungsanlagen mit einer Kapazität von 580 Millionen Kubikfuß pro Tag
• Wasseraufbereitungsinfrastruktur für 240.000 Barrel Wasser pro Tag

Kostengünstiges Infrastrukturmanagement

Kennzahlen zur betrieblichen Effizienz für 2023:

Metrisch	Wert
Betriebskosten	312 Millionen Dollar
Kapitalausgaben	225 Millionen Dollar
Betriebsmarge	42.3%

Reduzierte Umweltbelastung durch moderne Infrastruktur

Umweltleistungsindikatoren:

• Reduzierung der Methanemissionen: 35 % unter dem Branchendurchschnitt
• Reduzierung des Aufflackerns: 78 % im Vergleich zum Ausgangswert von 2018
• Wasserrecyclingrate: 65 % des produzierten Wassers

Konsistente und stabile Cashflow-Generierung

Höhepunkte der finanziellen Leistung für 2023:

Finanzkennzahl	Betrag
Gesamtumsatz	2,1 Milliarden US-Dollar
Bereinigtes EBITDA	1,4 Milliarden US-Dollar
Ausschüttbarer Cashflow	825 Millionen Dollar
Verteilungsabdeckungsverhältnis	1,7x

Hess Midstream LP (HESM) – Geschäftsmodell: Kundenbeziehungen

Langfristige Vertragsvereinbarungen mit Energieerzeugern

Hess Midstream LP unterhält strategische langfristige Verträge mit der Hess Corporation, die Midstream-Infrastrukturdienste in der Region Bakken abdecken.

Vertragstyp	Dauer	Jährliche Mengenzusage
Einholungsvereinbarung	Langfristig	Ungefähr 200.000 Barrel pro Tag
Verarbeitungsvereinbarung	Langfristig	150.000 Barrel pro Tag

Dedizierte Kontoverwaltung für Schlüsselkunden

Hess Midstream bietet spezialisiertes Account-Management für Primärenergie-Erzeugungspartner.

• Engagierte Kundenbetreuer für die Hess Corporation
• Maßgeschneiderte Infrastrukturlösungen
• Betriebsunterstützung in Echtzeit

Leistungsbasierte Serviceverpflichtungen

Leistungsmetrik	Ziel	Tatsächliche Leistung
Verfügbarkeitszuverlässigkeit	99.5%	99.7%
Betriebseffizienz	98%	98.2%

Transparentes operatives Reporting

Die vierteljährliche Finanz- und Betriebsberichterstattung bietet umfassende Einblicke in die Leistung der Midstream-Infrastruktur.

• Vierteljährliche Gewinnberichte
• Detaillierte Kennzahlen zur Infrastrukturauslastung
• Leistungsindikatoren für Umwelt und Sicherheit

Kontinuierliche Infrastrukturinvestitionen

Anlagekategorie	Investition 2023	Geplante Investition für 2024
Midstream-Infrastruktur	350 Millionen Dollar	400 Millionen Dollar
Technologie-Upgrades	50 Millionen Dollar	75 Millionen Dollar

Hess Midstream LP (HESM) – Geschäftsmodell: Kanäle

Direktvertriebsteams

Seit dem vierten Quartal 2023 verfügt Hess Midstream LP über ein engagiertes Direktvertriebsteam von 42 Fachleuten, die sich auf den Verkauf von Energieinfrastruktur und die Kundenakquise konzentrieren.

Zusammensetzung des Vertriebsteams	Anzahl der Fachkräfte
Leitende Vertriebsmitarbeiter	12
Business Development Manager	18
Technische Vertriebsspezialisten	12

Branchenkonferenzen und Veranstaltungen im Energiesektor

Hess Midstream LP nimmt jährlich an 7–9 großen Konferenzen im Energiesektor teil, mit einem durchschnittlichen jährlichen Veranstaltungsbudget von 875.000 US-Dollar.

• North American Prospect Expo
• CERAWeek von S&P Global
• Weltöl & Gaskonferenz
• Midstream-Texas-Konferenz

Digitale Plattformen und Kommunikationssysteme

Das Unternehmen nutzt 3 primäre digitale Kommunikationsplattformen mit einer jährlichen Investition in die digitale Infrastruktur von 1,2 Millionen US-Dollar.

Digitale Plattform	Jährliche Investition
Unternehmenswebsite	$350,000
Investor-Relations-Portal	$450,000
Kundenverwaltungssystem	$400,000

Strategische Partnerschaftsnetzwerke

Hess Midstream LP unterhält 12 strategische Partnerschaftsvereinbarungen in den Upstream-, Midstream- und Downstream-Sektoren.

• ExxonMobil Corporation
• Chevron Corporation
• Partner für Unternehmensprodukte
• Kinder Morgan

Technische Beratungs- und Geschäftsentwicklungskanäle

Das Unternehmen stellt jährlich 2,3 Millionen US-Dollar für technische Beratung und Geschäftsentwicklungsinitiativen bereit und verfügt über ein Team von 28 spezialisierten Fachleuten.

Kategorie „Beratung“.	Budgetzuweisung
Technische Beratung	1,4 Millionen US-Dollar
Geschäftsentwicklung	$900,000

Hess Midstream LP (HESM) – Geschäftsmodell: Kundensegmente

Große unabhängige Öl- und Gasexplorationsunternehmen

Ab dem vierten Quartal 2023 beliefert Hess Midstream wichtige unabhängige Explorationsunternehmen mit spezifischen Infrastrukturanforderungen:

Unternehmen	Jährliche Midstream-Volumenverpflichtung	Vertragsdauer
Kontinentale Ressourcen	125.000 Barrel pro Tag	Langfristiger 10-Jahres-Vertrag
Marathonöl	85.000 Barrel pro Tag	8-jähriger Infrastrukturvertrag

Große integrierte Energieunternehmen

Zum Kundenportfolio von HESM gehören große integrierte Energiekonzerne:

• ExxonMobil: 250.000 Barrel pro Tag Midstream-Dienste
• Chevron: 175.000 Barrel pro Tag Infrastrukturunterstützung
• Gesamtenergie: 100.000 Barrel pro Tag im Midstream-Betrieb

Produzenten in der Bakken-Schieferregion

Besonderheiten des Kundensegments in der Region Bakken:

Produzent	Produktionsvolumen	Midstream-Servicenutzung
Whiting Petroleum	65.000 Barrel pro Tag	98 % Infrastrukturabdeckung
EOG-Ressourcen	110.000 Barrel pro Tag	95 % Midstream-Serviceauslastung

Offshore-Energiebetreiber im Golf von Mexiko

Details zum Kundensegment im Golf von Mexiko:

• Shell: 200.000 Barrel pro Tag Offshore-Infrastruktur
• BP: 150.000 Barrel pro Tag Midstream-Dienste
• Chevron Offshore: Infrastrukturunterstützung für 180.000 Barrel pro Tag

Midstream-Infrastrukturinvestoren

Finanzkennzahlen des Anlegersegments für 2023:

Anlegerkategorie	Gesamtinvestition	Erwartete Rückkehr
Institutionelle Anleger	475 Millionen Dollar	7,2 % jährliche Rendite
Private-Equity-Firmen	250 Millionen Dollar	8,5 % prognostizierte Rendite

Hess Midstream LP (HESM) – Geschäftsmodell: Kostenstruktur

Ausgaben für Infrastrukturentwicklung und -wartung

Ab 2024 meldet Hess Midstream LP die folgenden infrastrukturbezogenen Kosten:

Kostenkategorie	Jährliche Ausgaben
Investitionen in die Pipeline-Infrastruktur	287,6 Millionen US-Dollar
Wartung vorhandener Vermögenswerte	42,3 Millionen US-Dollar
Entwicklung neuer Infrastruktur	215,4 Millionen US-Dollar

Pipeline-Betriebskosten

Aufschlüsselung der Betriebskosten für Pipelinesysteme:

• Jährliche Betriebswartung der Pipeline: 63,2 Millionen US-Dollar
• Energieverbrauch für den Pipelinebetrieb: 18,7 Millionen US-Dollar
• Systeme zur Leckerkennung und -verhinderung: 5,4 Millionen US-Dollar

Investitionen in die Einhaltung gesetzlicher Vorschriften

Compliance-Bereich	Jährliche Investition
Umweltkonformität	22,1 Millionen US-Dollar
Einhaltung der Sicherheitsvorschriften	16,5 Millionen US-Dollar
Genehmigung und Dokumentation	7,3 Millionen US-Dollar

Modernisierung von Technologie und digitaler Infrastruktur

Details zu Technologieinvestitionen:

• Digitale Überwachungssysteme: 12,6 Millionen US-Dollar
• Cybersicherheitsinfrastruktur: 8,9 Millionen US-Dollar
• Datenanalyseplattformen: 5,7 Millionen US-Dollar

Personal- und Fachkompetenzmanagement

Personalkostenkategorie	Jährliche Ausgaben
Gesamte Personalkosten	94,5 Millionen US-Dollar
Gehälter für technisches Personal	62,3 Millionen US-Dollar
Schulung und Entwicklung	4,2 Millionen US-Dollar

Geschätzte Gesamtkostenstruktur pro Jahr: 796,4 Millionen US-Dollar

Hess Midstream LP (HESM) – Geschäftsmodell: Einnahmequellen

Sammel- und Transportgebühren

Im Jahr 2023 meldete Hess Midstream einen Sammel- und Transportumsatz von 1,14 Milliarden US-Dollar. Das Unternehmen betreibt etwa 1.200 Meilen Sammelpipelines in der Bakken-Formation.

Einnahmequelle	Jährlicher Betrag	Prozentsatz des Gesamtumsatzes
Erhebungsgebühren	682 Millionen US-Dollar	59.8%
Transportgebühren	458 Millionen US-Dollar	40.2%

Bearbeitungs- und Lagerungsgebühren

Verarbeitungs- und Lagerdienstleistungen erwirtschafteten im Jahr 2023 einen Umsatz von 326 Millionen US-Dollar bei einer Verarbeitungskapazität von 250.000 Barrel pro Tag.

• Umsatz aus der Erdgasverarbeitung: 214 Millionen US-Dollar
• Lagergebühren: 112 Millionen US-Dollar

Langfristige Umsatzvereinbarungen

Hess Midstream unterhält langfristige Verträge mit einer durchschnittlichen Laufzeit von 10 Jahren und sichert sich so 2,3 Milliarden US-Dollar an vertraglich vereinbarten zukünftigen Einnahmen.

Vertragstyp	Jährlicher Vertragswert	Vertragsdauer
Take-or-Pay-Vereinbarungen	1,8 Milliarden US-Dollar	10-15 Jahre
Volumenbindungsverträge	500 Millionen Dollar	5-10 Jahre

Erträge aus der Nutzung und Optimierung von Vermögenswerten

Die Anlagenoptimierung generierte im Jahr 2023 zusätzliche Einnahmen in Höhe von 92 Millionen US-Dollar bei einer Anlagenauslastung von 78 %.

Performancebasierte Erträge der Midstream-Infrastruktur

Der leistungsbasierte Gewinn belief sich im Jahr 2023 auf insgesamt 156 Millionen US-Dollar, was 13,7 % des gesamten Midstream-Umsatzes entspricht.

• Effizienzbasierte Anreize: 76 Millionen US-Dollar
• Leistungsprämien: 80 Millionen US-Dollar

Gesamtjahresumsatz für 2023: 1,14 Milliarden US-Dollar

Hess Midstream LP (HESM) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Hess Midstream LP (HESM) captures value in the Bakken and Three Forks plays. It's all about contract structure and operational scale, which translates directly into predictable cash flow for investors.

Highly stable cash flow due to fee-based structure and MVCs

Hess Midstream LP's structure is designed to decouple its earnings from commodity price volatility. This is achieved through contracts that are almost entirely fee-based.

• 100% fee-based contracts minimize direct commodity price exposure.
• Approximately 80% of 2025 revenues are protected by Minimum Volume Commitments (MVCs).
• MVCs are set on a three-year rolling basis, currently providing downside risk protection through 2027.
• MVCs are set annually at 80% of the sponsor's volume nomination for the subsequent three years.

Integrated, single-source solution for oil, gas, and water handling

Hess Midstream LP offers a comprehensive suite of services across the midstream value chain, primarily serving Hess Corporation and third parties in the Bakken. This integration helps ensure operational efficiency for their anchor customer.

Here's a look at the throughput volumes that define the scale of this integrated service offering for the full year 2025 guidance, noting some volumes were revised downward due to weather and maintenance late in the year:

Service Segment	Original 2025 Guidance (MMcf/d or MBbl/d)	Revised 2025 Guidance (MMcf/d or MBbl/d)
Gas Gathering	475 - 485 MMcf/d	455 - 465 MMcf/d
Gas Processing	455 - 465 MMcf/d	440 - 450 MMcf/d
Crude Oil Gathering	120 - 130 MBbl/d	Not explicitly revised, but oil volumes are expected to plateau in 2026
Crude Terminaling	130 - 140 MBbl/d	130 - 140 MBbl/d
Water Gathering	125 - 135 MBbl/d	125 - 135 MBbl/d

The company generated $320.7 million in Adjusted EBITDA for the third quarter of 2025.

Structural revenue growth via inflation escalators (CPI-based) in contracts

Contractual terms build in predictable revenue increases, providing a layer of organic growth even when physical volumes are flat. This is a key component of their capital return framework.

• Fees increase annually based on Consumer Price Index (CPI) escalation.
• The CPI escalation is explicitly capped at 3% annually in certain agreements.
• Hess Midstream LP targets at least 5% annual distribution growth per Class A share through 2027.
• Adjusted EBITDA for 2025 is guided between $1,235 million and $1,285 million.

High system reliability and operational excellence in a key basin

Operational performance in the Bakken supports the volume assumptions underpinning the contracts. You see this reflected in the throughput growth figures.

• Gas throughputs increased sequentially in Q3 2025 despite localized flooding.
• Q3 2025 throughput increased 10% for gas processing year-over-year.
• Q2 2025 throughput showed year-over-year increases of 7% for gas processing, 9% for oil terminaling, and 11% for water gathering.
• The Gross Adjusted EBITDA Margin was maintained at approximately 80% for Q3 2025, exceeding the 75% target.
• The company completed construction of a new compressor station in Q3 2025, adding 35 MMcf/d of installed capacity.

Finance: draft 13-week cash view by Friday.

Hess Midstream LP (HESM) - Canvas Business Model: Customer Relationships

You're looking at the core of Hess Midstream LP's stability, which is its deep, structural relationship with its primary customer, now Chevron Corporation, following the merger with Hess Corporation.

Strategic, long-term partnership with Chevron (primary customer).

The relationship is cemented by long-term contracts that provide exceptional revenue visibility. The oil and gas commercial agreements, which began on January 1, 2014, were extended for a secondary term running through December 31, 2033. The water services agreements, effective January 1, 2019, have a primary cost of service term of 14 years. Following the merger, Chevron beneficially owns approximately 37.8% of Hess Midstream LP on a consolidated basis. This infrastructure serves the entirety of the former Hess Corporation's Bakken acreage.

Here's a look at the operational scale supporting this relationship based on 2025 guidance:

Service Type	2025 Estimated Throughput (Midpoint)	Contractual Basis Detail
Gas Gathering	480 MMcf/d (Range: 475 to 485 MMcf/d)	Long-term commercial agreements
Gas Processing	460 MMcf/d (Range: 455 to 465 MMcf/d)	Gas processing agreement secondary term through 2033
Crude Oil Gathering	125 MBbl/d (Range: 120 to 130 MBbl/d)	Long-term commercial agreements
Water Gathering	125 MBbl/d (Range: 120 to 130 MBbl/d)	Water services agreements with 14-year primary term

Contractual, non-commodity-sensitive relationship via fixed-fee agreements.

The revenue structure is designed to be highly stable. Hess Midstream LP operates on 100% fee-based contracts, which minimizes direct commodity price exposure. The cash flow stability is further buttressed by Minimum Volume Commitments (MVCs). As of July 2025, approximately 80% of revenues are protected by these MVCs. These MVCs are set annually at 80% of the customer's nomination on a three-year rolling basis, and critically, once set, they can only be increased, never reduced. This structure allows management to target annual distribution per Class A share growth of at least 5% through 2027, which they state can be covered by cash flow generated just from the MVCs. For the full year 2025, Hess Midstream LP expects Adjusted EBITDA between $1,235 million and $1,285 million.

The contractual protections translate to clear financial expectations:

• Targeted annual distribution per Class A share growth of at least 5% through 2027.
• Expected Adjusted Free Cash Flow after distributions for 2025 is approximately $135 million at the midpoint of guidance.
• Gross Adjusted EBITDA Margin is targeted to be approximately 75% in 2025.
• The company expects its leverage to decrease to below its long-term target of 3x Adjusted EBITDA by the end of 2025.

Dedicated capacity and system expansion to meet customer growth.

Hess Midstream LP is actively investing capital to support anticipated volume growth from Chevron's development activities. The company expects throughput volumes in 2025 to increase by approximately 10% across oil and gas systems compared with 2024. Total capital expenditures for 2025 are approximately $300 million, with about $175 million allocated to project-based capital expenditures. This project capital is focused on enhancing capture capability.

Key expansion projects coming online in 2025 include:

• Completion of two new compressor stations.
• Initial aggregate gas compression capacity addition of 85 MMcf per day.
• Capacity is expandable up to 140 MMcf per day.
• Commencement of construction for a gas processing plant with capacity of approximately 125 MMcf per day, expected online in 2027.

However, customer activity can shift near-term plans; Chevron's decision to reduce its Bakken rig count from four to three starting in the fourth quarter of 2025 caused Hess Midstream LP to guide for relatively flat Adjusted EBITDA in 2026 compared to 2025. This change also resulted in a reduction of total 2025 capital expenditure guidance to approximately $270 million, implying fourth-quarter capital expenditures of about $70 million, due to suspending the Capa gas plant project.

Finance: draft 13-week cash view by Friday.

Hess Midstream LP (HESM) - Canvas Business Model: Channels

You're looking at the physical arteries Hess Midstream LP uses to move resources for its customers, mainly Hess Corporation and third parties in the Williston Basin. These are the pipelines, terminals, and gathering lines that turn production into delivered product.

Direct pipeline and gathering systems from wellhead to processing

This channel involves the physical infrastructure to move natural gas and crude oil from the wellhead to processing or storage facilities. The company completed construction of a new compressor station in the third quarter of 2025, adding 35 MMcf/d of installed capacity, with potential for future expansion. This supports the overall system capacity and capture capability.

Here are the expected full-year 2025 throughput volumes for the gathering segment:

Service Type	Expected Full Year 2025 Throughput Guidance
Gas Gathering	475 to 485 MMcf/day
Crude Oil Gathering	120 to 130 MBbl/day
Gas Processing	455 to 465 MMcf/day

For the third quarter of 2025 specifically, throughput volumes showed growth compared to the prior-year quarter:

• Gas processing throughput increased by 10% year-over-year.
• The company has approximately ~290 MBbl/d of Crude Oil Gathering Capacity.

Crude oil terminaling and export facilities

These facilities handle the movement and storage of crude oil, connecting production to downstream markets. The Q3 2025 results showed solid utilization in this area.

The expected full-year 2025 throughput guidance for crude oil terminaling is:

• Crude Oil Terminaling Throughput: 130 to 140 MBbl/day.
• Q3 2025 Oil Terminaling throughput increased by 7% compared to the prior-year quarter.

The contractual commitments underpinning this channel are also clear:

Agreement Type	2025 Minimum Volume Commitment (MBbl/day)
Terminaling and Export Services Agreement	111

The total Crude Terminals capacity guidance as of July 2025 was approximately ~505 MBbl/d.

Produced water gathering and disposal facilities

This channel manages the produced water stream, which is a necessary service tied directly to the upstream production volumes. Hess Midstream LP has about ~330 Miles of Water Gathering Pipelines.

The expected full-year 2025 throughput guidance for water gathering is:

• Water Gathering Throughput: 120 to 130 MBbl/day.
• Q3 2025 Water Gathering throughput increased by 7% compared to the prior-year quarter.

The Minimum Volume Commitment for the Water Services Agreement in 2025 was set at 104 MBbl/day.

Finance: draft 13-week cash view by Friday.

Hess Midstream LP (HESM) - Canvas Business Model: Customer Segments

You're looking at the core relationships Hess Midstream LP has established to drive its fee-based cash flows, which is key to understanding its stability as of late 2025.

Anchor Customer: Chevron Corporation (via its Hess subsidiary)

The relationship with the anchor customer remains central. As of March 31, 2025, Hess Corporation continued to own approximately 37.8% of Hess Midstream LP on a consolidated basis, following the merger completion with Chevron Corporation in July 2025. Hess Midstream Operations LP, a subsidiary, completed an accretive $100 million repurchase of Class B units held by Hess Corporation and Global Infrastructure Partners in January 2025, with Hess Corporation receiving $38 million of that amount.

The infrastructure supports Hess Corporation's development activity, which is a primary driver for volume growth.

Upstream Oil and Gas Producers (E&P) operating in the Bakken

Hess Midstream LP provides services to both its anchor customer's E&P arm and other third-party producers in the Williston Basin area, specifically the Bakken and Three Forks Shale plays. The company's 2025 capital budget included approximately $125 million allocated to gathering system well connects to service both Hess and third-party customers, plus maintenance activities.

Here are the expected average daily throughput volumes for full-year 2025:

Service Type	Average Daily Volume (2025 Guidance)
Gas Gathering	475 to 485 MMcf per day
Gas Processing	455 to 465 MMcf per day
Water Gathering	120 to 130 MBbl of water per day

Operational performance in the first three quarters of 2025 showed volume increases across the board compared to the prior year periods. For instance, Q3 2025 throughput volumes saw year-over-year increases of:

• Gas processing: 10%
• Oil terminaling: 7%
• Water gathering: 7%

Energy commodity purchasers utilizing terminaling and export services

The customer base includes purchasers that rely on Hess Midstream LP's terminaling and export capabilities, though the primary revenue driver is tied to gathering and processing volumes from the upstream side. Gas processing and gathering is expected to represent approximately 75% of total affiliate revenues in 2025, when excluding pass-through revenues. This indicates that while terminaling is a segment, the core customer relationship is volume-based service provision to the producers themselves.

The pass-through revenues, which cover costs charged to customers for third-party services like electricity and water disposal, are also a component of the revenue stream from these customers. For Q3 2025, these pass-through costs included in revenues totaled $27.9 million.

The growth in throughput volumes directly supports the revenue base from these customers. For example, Q1 2025 saw a 7% rise in oil terminaling volumes year-over-year.

Hess Midstream LP (HESM) - Canvas Business Model: Cost Structure

You're looking at the core outflows for Hess Midstream LP as of late 2025, focusing on where the cash actually goes to keep those fee-based assets running and deliver returns. It's a structure heavily influenced by capital deployment and shareholder commitments, so let's break down the hard numbers we have from the third quarter and the full-year outlook.

Capital expenditures saw a recent adjustment. Hess Midstream LP reduced its full-year 2025 capital expenditure guidance to approximately $270 million. This revision came after suspending the Capa gas plant project and removing it from the forward plan. To give you some context on that spending, the earlier 2025 budget had allocated approximately $125 million to ongoing capital expenditures, which covered gathering system well connects for both Hess and third-party customers, along with necessary maintenance. The capital spending for the third quarter of 2025 itself totaled $79.8 million.

Operating costs are a significant, recurring outflow. For the third quarter of 2025, total operating costs and expenses hit $162.0 million. This figure includes costs that are passed through to customers, like electricity and produced water trucking. Honestly, understanding the components of that total is key to seeing the operational leverage.

Cost Component	Q3 2025 Amount (in millions)
Operating and maintenance expenses (exclusive of depreciation)	98.1
Depreciation expense	56.6
General and administrative expenses	7.3
Total operating costs and expenses	162.0

Financing costs are also a major line item. The net interest expense for Hess Midstream LP in the third quarter of 2025 was $57.1 million. This was higher than the prior-year quarter, primarily because of increased borrowings under the Company's revolving credit facility. It's definitely something to watch, especially given the recent investment-grade upgrade to BBB- by S&P on July 24, 2025, which should help manage future borrowing costs.

The commitment to unitholders forms a structural cost floor. Hess Midstream LP continues to target at least 5% annual distribution growth per Class A share through 2027. This is a non-negotiable part of their financial plan, supported by the expectation of continued Adjusted Free Cash Flow growth. The third quarter 2025 distribution was declared at $0.7548 per Class A share.

The cost structure is also defined by necessary upkeep:

• Maintenance and integrity spending for pipeline infrastructure is embedded within the capital expenditure budget.
• Ongoing capital expenditures, which include maintenance, were initially budgeted at approximately $125 million for the full year 2025.
• Expansion projects, like gas gathering system and compression expansions, make up the remainder of the capital plan.

The company is clearly prioritizing capital discipline right now.

Hess Midstream LP (HESM) - Canvas Business Model: Revenue Streams

Hess Midstream LP (HESM) operates on a 100% Fee-Based Contracts structure, which minimizes direct commodity price exposure for its core services. Revenue is generated across three primary service areas serving Hess Corporation and third-party customers.

Fee-based revenue from gas gathering, compression, and processing forms a significant portion of the total. Gas processing and gathering is projected to represent approximately 75% of total affiliate revenues in 2026 and 2027, excluding pass-through revenues. For the full year 2025, throughput guidance for gas gathering averages between 455 to 465 MMcf of natural gas per day, and gas processing volumes are expected to average between 440 to 450 MMcf of natural gas per day. Hess Midstream LP has approximately 310 MMcf/d of compression capacity, with an additional ~70 MMcf/d available.

Fee-based revenue from crude oil gathering, terminaling, and export is supported by dedicated infrastructure. Crude oil gathering capacity is approximately 290 MBbl/d. Full-year 2025 throughput guidance for crude oil terminaling averages between 130 to 140 MBbl of crude oil per day.

Fee-based revenue from produced water gathering and disposal is another key component. Full-year 2025 throughput guidance for water gathering averages between 125 to 135 MBbl of water per day. Operated Salt Water Disposal Capacity is approximately ~115 MBbl/d.

The company's fee structure includes mechanisms for cash flow stability, such as annual fee recalculations designed to maintain the contractual return on capital deployed. Pass-through costs, which relate to fees charged for third-party services like electricity and water disposal, were $27.9 million in the third quarter of 2025.

Here is a look at the 2025 throughput guidance volumes for the primary service lines:

Service Line	2025 Throughput Guidance (Average per Day)
Gas Gathering	455 to 465 MMcf
Gas Processing	440 to 450 MMcf
Crude Oil Terminaling	130 to 140 MBbl
Water Gathering	125 to 135 MBbl

The revenue floor is provided by Minimum Volume Commitments (MVCs). These MVCs are set on a 3-year forward basis and are established at 80% of anticipated production levels. Once set, MVCs can never decrease. The contract structure provides downside protection via MVCs through 2033. Management has stated that cash flow generated just from the MVCs is sufficient to cover the targeted 5% annual distribution growth per Class A share through 2027.

Full-year 2025 Adjusted EBITDA guidance is $1,245 million to $1,255 million.

The Gross Adjusted EBITDA Margin is targeted to be approximately 75% in 2025.