Hess Midstream LP (HESM): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage dynamique de l'infrastructure énergétique médiane, Hess Midstream LP (HESM) apparaît comme une puissance stratégique, transformant la façon dont les ressources pétrolières et gazières sont rassemblées, traitées et transportées à travers les régions de schiste de Bakken et le golfe du Mexique. Cette entreprise innovante a méticuleusement conçu un modèle commercial qui non seulement stimule l'efficacité opérationnelle mais offre également une valeur substantielle aux producteurs d'énergie et aux investisseurs, en tirant parti des infrastructures de pointe, des partenariats stratégiques et une approche robuste des services intermédiaires qui établit de nouvelles normes industrielles.

Hess Midstream LP (HESM) - Modèle d'entreprise: partenariats clés

Hess Corporation (actionnaire majoritaire et fournisseur principal)

Au quatrième trimestre 2023, Hess Corporation détient environ 62% des actions totales en circulation de Hess Midstream LP. Le partenariat implique des actifs stratégiques d'infrastructure intermédiaire d'une valeur de 4,2 milliards de dollars.

Métrique de partenariat	Valeur quantitative
Pourcentage de propriété	62%
Valeur totale de l'actif	4,2 milliards de dollars
Volume de l'offre annuelle	200 000 barils par jour

Partenaires d'infrastructure intermédiaire

Hess Midstream collabore avec plusieurs partenaires régionaux dans les régions de Bakken et du Golfe du Mexique.

• Enterprise Products Partners LP
• Plaines All American Pipeline
• LP de transfert d'énergie

Pipeline stratégique et partenaires de coentreprise des installations de stockage

Partenaire	Type d'infrastructure	Valeur d'investissement
Marathon pétrole	Infrastructure de pipeline	350 millions de dollars
Phillips 66	Installations de stockage	275 millions de dollars

Fournisseurs de technologies

Hess Midstream s'associe à des entreprises de technologie de pointe pour l'optimisation des infrastructures.

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

Cabinets de conseil en conformité environnementale et réglementaire

Cabinet de conseil	Services fournis	Valeur du contrat annuel
WSP Global Inc.	Évaluation de l'impact environnemental	2,5 millions de dollars
Aecom	Conformité réglementaire	1,8 million de dollars

Hess Midstream LP (HESM) - Modèle d'entreprise: activités clés

Rassembler, transformer et transporter du pétrole brut et du gaz naturel

Hess Midstream fonctionne avec les mesures d'infrastructure clés suivantes:

Composant d'infrastructure	Capacité / volume
Système de rassemblement de pétrole brut	250 000 barils par jour
Capacité de traitement du gaz naturel	385 millions de pieds cubes par jour
Longueur totale du réseau de pipeline	1 200 miles

Infrastructure en milieu médian opérationnel

Concentration géographique des opérations:

• Dakota du Nord Région de schiste de Bakken
• Golfe offshore du Mexique

Développement et maintenance du réseau de pipelines

Métrique du réseau	État actuel
Investissement total du pipeline	742 millions de dollars (2023)
Dépenses de maintenance annuelles	58 millions de dollars

Services de stockage et de terminaison

Détails de l'infrastructure de stockage:

• Capacité de stockage totale: 3,4 millions de barils
• Installations de terminaison: 4 emplacements stratégiques
• Débit annuel: 125 millions de barils

Optimisation des actifs et expansion des infrastructures

Métrique d'expansion	2024 projection
Dépenses en capital	210 à 230 millions de dollars
Nouveaux projets d'infrastructure	3 Développements prévus en milieu en milieu
Augmentation de la capacité attendue	15% d'une année à l'autre

Hess Midstream LP (HESM) - Modèle d'entreprise: Ressources clés

Des actifs d'infrastructures intermédiaires importants dans le schiste de Bakken

Depuis 2024, Hess Midstream LP possède et exploite des infrastructures critiques dans la région du schiste de Bakken:

Type d'actif	Quantité	Capacité
Pipelines de rassemblement de pétrole brut	1 200 miles	250 000 barils par jour
Pipelines de rassemblement de gaz naturel	850 miles	800 millions de pieds cubes par jour
Installations de traitement	3 installations majeures	260 000 barils par jour

Pipeline avancée et installations de traitement

Les composantes clés de l'infrastructure comprennent:

• Plant de gaz Tioga avec une propriété à 100%
• Infrastructure intermédiaire avec 87,5% de propriété
• Réseau de pipelines sophistiqué à travers le Dakota du Nord

Emplacements géographiques stratégiques

Des actifs géographiques concentrés dans:

• Bakken Schiste, Dakota du Nord
• Positionnement stratégique près des grandes zones de production
• Proximité avec les principales voies de transport d'énergie

Expertise technique dans les opérations intermédiaires

Catégorie d'expertise	Main-d'œuvre professionnelle
Total des employés	350 professionnels
Personnel d'ingénierie	125 ingénieurs spécialisés
Gestion des opérations	75 experts opérationnels seniors

Capacités financières et investissements solides

Ressources financières au quatrième trimestre 2023:

Métrique financière	Montant
Actif total	3,2 milliards de dollars
Revenus annuels	1,7 milliard de dollars
Facilité de crédit disponible	500 millions de dollars
Capitalisation boursière	6,5 milliards de dollars

Hess Midstream LP (HESM) - Modèle d'entreprise: propositions de valeur

Services de transport d'énergie fiables et efficaces

Hess Midstream LP exploite environ 1 200 miles de pipelines de rassemblement dans la formation de Bakken. La capacité de transport quotidienne atteint 240 000 barils de pétrole brut et 380 millions de pieds cubes de gaz naturel.

Actif d'infrastructure	Capacité	Emplacement géographique
Rassembler des pipelines	1 200 miles	Formation de Bakken, Dakota du Nord
Transport de pétrole brut	240 000 barils / jour	Dakota du Nord
Transport de gaz naturel	380 millions de pieds cubes / jour	Dakota du Nord

Solutions intégrées intermédiaires pour les producteurs de pétrole et de gaz

Hess Midstream fournit des services médian complets avec les offres clés suivantes:

• Rassemblement des systèmes pour le pétrole brut et le gaz naturel
• Installations de traitement avec 580 millions de pieds cubes par jour
• Infrastructures de manutention d'eau soutenant 240 000 barils d'eau par jour

Gestion des infrastructures rentables

Mesures d'efficacité opérationnelle pour 2023:

Métrique	Valeur
Dépenses d'exploitation	312 millions de dollars
Dépenses en capital	225 millions de dollars
Marge opérationnelle	42.3%

Impact environnemental réduit grâce à l'infrastructure moderne

Indicateurs de performance environnementale:

• Réduction des émissions de méthane: 35% en dessous de la moyenne de l'industrie
• Réduction du lac: 78% par rapport à la ligne de base 2018
• Taux de recyclage de l'eau: 65% de l'eau produite

Génération de flux de trésorerie cohérente et stable

Points forts de la performance financière pour 2023:

Métrique financière	Montant
Revenus totaux	2,1 milliards de dollars
EBITDA ajusté	1,4 milliard de dollars
Flux de trésorerie distribuables	825 millions de dollars
Ratio de couverture de distribution	1,7x

Hess Midstream LP (HESM) - Modèle d'entreprise: relations avec les clients

Accords contractuels à long terme avec les producteurs d'énergie

Hess Midstream LP maintient des contrats stratégiques à long terme avec Hess Corporation, couvrant les services d'infrastructure Midstream dans la région de Bakken.

Type de contrat	Durée	Engagement annuel en volume
Contrat de rassemblement	À long terme	Environ 200 000 barils par jour
Accord de traitement	À long terme	150 000 barils par jour

Gestion de compte dédiée pour les clients clés

Hess Midstream fournit une gestion des comptes spécialisée pour les partenaires de production d'énergie primaires.

• Gestionnaires des relations dédiées à Hess Corporation
• Solutions d'infrastructure personnalisées
• Support opérationnel en temps réel

Engagements de service basés sur la performance

Métrique de performance	Cible	Performance réelle
Fiabilité de la disponibilité	99.5%	99.7%
Efficacité opérationnelle	98%	98.2%

Rapports opérationnels transparents

Les rapports financiers et opérationnels trimestriels fournissent des informations complètes sur les performances des infrastructures intermédiaires.

• Rapports de bénéfices trimestriels
• Mesures détaillées de l'utilisation des infrastructures
• Indicateurs de performance environnementale et de sécurité

Investissement continu des infrastructures

Catégorie d'investissement	2023 Investissement	Investissement prévu en 2024
Infrastructure intermédiaire	350 millions de dollars	400 millions de dollars
Mises à niveau technologique	50 millions de dollars	75 millions de dollars

Hess Midstream LP (HESM) - Modèle d'entreprise: canaux

Équipes de vente directes

Depuis le quatrième trimestre 2023, Hess Midstream LP maintient une équipe de vente directe dédiée de 42 professionnels axée sur les ventes d'infrastructures énergétiques et l'acquisition de clients.

Composition de l'équipe de vente	Nombre de professionnels
Représentants des ventes supérieurs	12
Gestionnaires du développement commercial	18
Spécialistes des ventes techniques	12

Conférences de l'industrie et événements du secteur de l'énergie

Hess Midstream LP participe à 7 à 9 conférences majeures du secteur de l'énergie chaque année, avec un budget de participation annuel moyen de 875 000 $.

• Exposition de prospects nord-américains
• Ceraweek par S&P Global
• Huile mondiale & Conférence
• Conférence du Texas au milieu

Plates-formes numériques et systèmes de communication

L'entreprise utilise 3 plateformes de communication numérique primaires avec un investissement annuel sur les infrastructures numériques de 1,2 million de dollars.

Plate-forme numérique	Investissement annuel
Site Web de l'entreprise	$350,000
Portail des relations avec les investisseurs	$450,000
Système de gestion des clients	$400,000

Réseaux de partenariat stratégiques

Hess Midstream LP maintient 12 accords de partenariat stratégique dans les secteurs en amont, du milieu et du montant en aval.

• ExxonMobil Corporation
• Chevron Corporation
• Partners des produits d'entreprise
• Kinder Morgan

Canaux de conseil technique et de développement commercial

La société alloue 2,3 millions de dollars par an à des initiatives de conseil technique et de développement commercial, avec une équipe de 28 professionnels spécialisés.

Catégorie de conseil	Allocation budgétaire
Conseil technique	1,4 million de dollars
Développement commercial	$900,000

Hess Midstream LP (HESM) - Modèle d'entreprise: segments de clientèle

Grandes sociétés d'exploration de pétrole et de gaz indépendantes

Depuis le quatrième trimestre 2023, Hess Midstream dessert les principales sociétés d'exploration indépendantes ayant des exigences d'infrastructure spécifiques:

Entreprise	Engagement annuel de volume intermédiaire	Durée du contrat
Ressources continentales	125 000 barils par jour	Accord à long terme à 10 ans
Huile de marathon	85 000 barils par jour	Contrat d'infrastructure de 8 ans

Grandes sociétés énergétiques intégrées

Le portefeuille de clients de HESM comprend des grandes sociétés énergétiques intégrées:

• ExxonMobil: 250 000 barils par jour des services en milieu en milieu
• Chevron: 175 000 barils par jour
• Énergies totales: 100 000 barils par jour

Producteurs de région de schiste de Bakken

Bakken Region Customer SEGLING SECHITELS:

Producteur	Volume de production	Utilisation du service intermédiaire
Whiting Petroleum	65 000 barils par jour	Couverture d'infrastructure à 98%
Ressources EOG	110 000 barils par jour	Utilisation du service à 95% au milieu

Golfe du Mexique

Détails du segment de la clientèle du golfe du Mexique:

• Shell: 200 000 barils par jour Infrastructure offshore
• BP: 150 000 barils par jour des services en milieu en milieu
• Chevron Offshore: 180 000 barils par jour Soutien de l'infrastructure

Investisseurs d'infrastructure intermédiaire

Mesures financières du segment des investisseurs pour 2023:

Catégorie d'investisseurs	Investissement total	Retour attendu
Investisseurs institutionnels	475 millions de dollars	Retour annuel de 7,2%
Sociétés de capital-investissement	250 millions de dollars	8,5% de rendement projeté

Hess Midstream LP (HESM) - Modèle d'entreprise: Structure des coûts

Développement des infrastructures et dépenses de maintenance

En 2024, Hess Midstream LP rapporte les coûts liés à l'infrastructure suivants:

Catégorie de coûts	Dépenses annuelles
Dépenses en capital des infrastructures de pipeline	287,6 millions de dollars
Entretien des actifs existants	42,3 millions de dollars
Nouveau développement d'infrastructures	215,4 millions de dollars

Coûts opérationnels de pipeline

Répartition des dépenses opérationnelles pour les systèmes de pipeline:

• Maintenance opérationnelle annuelle du pipeline: 63,2 millions de dollars
• Consommation d'énergie pour les opérations du pipeline: 18,7 millions de dollars
• Systèmes de détection et de prévention des fuites: 5,4 millions de dollars

Investissements de conformité réglementaire

Zone de conformité	Investissement annuel
Conformité environnementale	22,1 millions de dollars
Adhésion au règlement sur la sécurité	16,5 millions de dollars
Autorisation et documentation	7,3 millions de dollars

Mises à niveau de la technologie et des infrastructures numériques

Détails de l'investissement technologique:

• Systèmes de surveillance numérique: 12,6 millions de dollars
• Infrastructure de cybersécurité: 8,9 millions de dollars
• Plateformes d'analyse de données: 5,7 millions de dollars

Gestion du personnel et de l'expertise technique

Catégorie de coût du personnel	Dépenses annuelles
Total des coûts du personnel	94,5 millions de dollars
Salaires du personnel technique	62,3 millions de dollars
Formation et développement	4,2 millions de dollars

Structure totale des coûts annuels estimés: 796,4 millions de dollars

Hess Midstream LP (HESM) - Modèle d'entreprise: Strots de revenus

Frais de rassemblement et de transport

En 2023, Hess Midstream a déclaré des revenus de collecte et de transport de 1,14 milliard de dollars. La société exploite environ 1 200 miles de pipelines de rassemblement dans la formation de Bakken.

Source de revenus	Montant annuel	Pourcentage du total des revenus
Frais de rassemblement	682 millions de dollars	59.8%
Frais de transport	458 millions de dollars	40.2%

Frais de service de traitement et de stockage

Les services de traitement et de stockage ont généré 326 millions de dollars de revenus pour 2023, avec une capacité de traitement de 250 000 barils par jour.

• Revenus de traitement du gaz naturel: 214 millions de dollars
• Frais de stockage: 112 millions de dollars

Accords de revenus contractuels à long terme

Hess Midstream maintient des contrats à long terme avec une durée moyenne de 10 ans, ce qui obtient 2,3 milliards de dollars de revenus futurs contractés.

Type de contrat	Valeur du contrat annuel	Durée du contrat
Accords à prendre ou à payer	1,8 milliard de dollars	10-15 ans
Contrats d'engagement de volume	500 millions de dollars	5-10 ans

Utilisation des actifs et revenu d'optimisation

L'optimisation des actifs a généré 92 millions de dollars de revenus supplémentaires pour 2023, avec un taux d'utilisation des actifs de 78%.

Infrastructure médiane Infrastructure Générations basées sur

Les bénéfices basés sur les performances ont totalisé 156 millions de dollars en 2023, ce qui représente 13,7% du total des revenus en milieu médian.

• Incitations basées sur l'efficacité: 76 millions de dollars
• Bonus de performance: 80 millions de dollars

Revenu annuel total pour 2023: 1,14 milliard de dollars

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.