Hess Midstream LP (HESM): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário dinâmico da infraestrutura de energia do meio da corrente, o Hess Midstream LP (HESM) emerge como uma potência estratégica, transformando como os recursos de petróleo e gás são coletados, processados ​​e transportados através do xisto de Bakken e das regiões do Golfo do México. Esta empresa inovadora criou meticulosamente um modelo de negócios que não apenas gera eficiência operacional, mas também oferece valor substancial aos produtores e investidores de energia, alavancando a infraestrutura de ponta, parcerias estratégicas e uma abordagem robusta dos serviços médios que estabelece novos padrões do setor.

Hess Midstream LP (HESM) - Modelo de negócios: Parcerias -chave

Hess Corporation (acionista majoritário e fornecedor primário)

A partir do quarto trimestre de 2023, a Hess Corporation possui aproximadamente 62% das ações totais em circulação da Hess Midstream LP. A parceria envolve ativos estratégicos de infraestrutura média no meio do valor de US $ 4,2 bilhões.

Métrica de Parceria	Valor quantitativo
Porcentagem de propriedade	62%
Valor total do ativo	US $ 4,2 bilhões
Volume anual de oferta	200.000 barris por dia

Parceiros de infraestrutura média

Hess Midstream colabora com vários parceiros regionais nas regiões Bakken e Golfo do México.

• Enterprise Products Partners LP
• Plains todo o oleoduto
• LP de transferência de energia

Parceiros de joint venture da instalação de oleoduto e armazenamento estratégicos

Parceiro	Tipo de infraestrutura	Valor de investimento
Maratona Petróleo	Infraestrutura de pipeline	US $ 350 milhões
Phillips 66	Instalações de armazenamento	US $ 275 milhões

Provedores de tecnologia

A Hess Midstream faz parceria com empresas de tecnologia avançada para otimização de infraestrutura.

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

Empresas de consultoria de conformidade ambiental e regulatória

Empresa de consultoria	Serviços prestados	Valor anual do contrato
WSP Global Inc.	Avaliação de impacto ambiental	US $ 2,5 milhões
Aecom	Conformidade regulatória	US $ 1,8 milhão

Hess Midstream LP (HESM) - Modelo de negócios: Atividades -chave

Coleta, processamento e transporte de petróleo e gás natural

Hess Midstream opera com as seguintes métricas de infraestrutura -chave:

Componente de infraestrutura	Capacidade/volume
Sistema de coleta de petróleo bruto	250.000 barris por dia
Capacidade de processamento de gás natural	385 milhões de pés cúbicos por dia
Comprimento total da rede de pipeline	1.200 milhas

Infraestrutura médio operacional

Concentração geográfica de operações:

• Região de xisto de Dakota do Norte Bakken
• Offshore Golfo do México

Desenvolvimento e manutenção da rede de pipeline

Métrica de rede	Status atual
Investimento total de pipeline	US $ 742 milhões (2023)
Gastos anuais de manutenção	US $ 58 milhões

Serviços de armazenamento e terminal

Detalhes da infraestrutura de armazenamento:

• Capacidade total de armazenamento: 3,4 milhões de barris
• Instalações de terminal: 4 locais estratégicos
• Taxa de transferência anual: 125 milhões de barris

Otimização de ativos e expansão de infraestrutura

Métrica de expansão	2024 Projeção
Gasto de capital	US $ 210 a US $ 230 milhões
Novos projetos de infraestrutura	3 desenvolvimentos planejados no meio da corrente
Aumento da capacidade esperada	15% ano a ano

Hess Midstream LP (HESM) - Modelo de negócios: Recursos -chave

Extensos ativos de infraestrutura médio em Bakken Shale

A partir de 2024, o Hess Midstream LP possui e opera infraestrutura crítica na região de Bakken Shale:

Tipo de ativo	Quantidade	Capacidade
Oleodutos de coleta de petróleo bruto	1.200 milhas	250.000 barris por dia
Oleodutos de coleta de gás natural	850 milhas	800 milhões de pés cúbicos por dia
Instalações de processamento	3 principais instalações	260.000 barris por dia

Instalações avançadas de oleoduto e processamento

Os principais componentes de infraestrutura incluem:

• Planta de gás Tioga com 100% de propriedade
• Infraestrutura média com 87,5% de propriedade
• Rede de oleodutos sofisticados em Dakota do Norte

Locais geográficos estratégicos

Ativos geográficos concentrados em:

• Bakken Shale, Dakota do Norte
• Posicionamento estratégico próximo às principais zonas de produção
• Proximidade com as principais rotas de transporte energético

Experiência técnica em operações no meio do fluxo

Categoria de especialização	Força de trabalho profissional
Total de funcionários	350 profissionais
Equipe de engenharia	125 engenheiros especializados
Gerenciamento de operações	75 especialistas em operação seniores

Fortes capital financeiro e capacidades de investimento

Recursos Financeiros a partir do quarto trimestre 2023:

Métrica financeira	Quantia
Total de ativos	US $ 3,2 bilhões
Receita anual	US $ 1,7 bilhão
Linha de crédito disponível	US $ 500 milhões
Capitalização de mercado	US $ 6,5 bilhões

Hess Midstream LP (HESM) - Modelo de negócios: proposições de valor

Serviços de transporte energético confiáveis ​​e eficientes

O Hess Midstream LP opera aproximadamente 1.200 milhas de oleodutos na formação de Bakken. A capacidade diária de transporte atinge 240.000 barris de petróleo bruto e 380 milhões de pés cúbicos de gás natural.

Ativo de infraestrutura	Capacidade	Localização geográfica
Coleta de oleodutos	1.200 milhas	Formação Bakken, Dakota do Norte
Transporte de petróleo bruto	240.000 barris/dia	Dakota do Norte
Transporte de gás natural	380 milhões de pés cúbicos/dia	Dakota do Norte

Soluções integradas de meio -fluxo para produtores de petróleo e gás

A Hess Midstream fornece serviços abrangentes no meio da corrente com as seguintes ofertas -chave:

• Sistemas de coleta para petróleo bruto e gás natural
• Instalações de processamento com 580 milhões de pés cúbicos por dia
• Infraestrutura de manuseio de água que suporta 240.000 barris de água por dia

Gerenciamento de infraestrutura econômica

Métricas de eficiência operacional para 2023:

Métrica	Valor
Despesas operacionais	US $ 312 milhões
Despesas de capital	US $ 225 milhões
Margem operacional	42.3%

Impacto ambiental reduzido através da infraestrutura moderna

Indicadores de desempenho ambiental:

• Redução das emissões de metano: 35% abaixo da média da indústria
• Redução de queima: 78% em comparação com a linha de base de 2018
• Taxa de reciclagem de água: 65% da água produzida

Geração de fluxo de caixa consistente e estável

O desempenho financeiro destaca para 2023:

Métrica financeira	Quantia
Receita total	US $ 2,1 bilhões
Ebitda ajustada	US $ 1,4 bilhão
Fluxo de caixa distribuível	US $ 825 milhões
Taxa de cobertura de distribuição	1.7x

Hess Midstream LP (HESM) - Modelo de Negócios: Relacionamentos do Cliente

Acordos contratuais de longo prazo com produtores de energia

A Hess Midstream LP mantém contratos estratégicos de longo prazo com a Hess Corporation, cobrindo os serviços de infraestrutura média na região de Bakken.

Tipo de contrato	Duração	Compromisso anual de volume
Contrato de coleta	A longo prazo	Aproximadamente 200.000 barris por dia
Contrato de processamento	A longo prazo	150.000 barris por dia

Gerenciamento de conta dedicado para clientes -chave

Hess Midstream fornece gerenciamento de contas especializado para parceiros de produção de energia primária.

• Gerentes de relacionamento dedicados para a Hess Corporation
• Soluções de infraestrutura personalizadas
• Suporte operacional em tempo real

Compromissos de serviço baseados em desempenho

Métrica de desempenho	Alvo	Desempenho real
Confiabilidade do tempo de atividade	99.5%	99.7%
Eficiência operacional	98%	98.2%

Relatórios operacionais transparentes

Os relatórios financeiros e operacionais trimestrais fornecem informações abrangentes sobre o desempenho da infraestrutura média.

• Relatórios de ganhos trimestrais
• Métricas detalhadas de utilização de infraestrutura
• Indicadores de desempenho ambiental e de segurança

Investimento contínuo de infraestrutura

Categoria de investimento	2023 Investimento	Investimento de 2024 planejado
Infraestrutura média	US $ 350 milhões	US $ 400 milhões
Atualizações de tecnologia	US $ 50 milhões	US $ 75 milhões

Hess Midstream LP (HESM) - Modelo de Negócios: Canais

Equipes de vendas diretas

No quarto trimestre 2023, o Hess Midstream LP mantém uma equipe de vendas direta dedicada de 42 profissionais focados nas vendas de infraestrutura de energia e na aquisição de clientes.

Composição da equipe de vendas	Número de profissionais
Representantes de vendas seniores	12
Gerentes de desenvolvimento de negócios	18
Especialistas em vendas técnicas	12

Conferências do setor e eventos do setor de energia

O Hess Midstream LP participa de 7-9 principais conferências do setor de energia anualmente, com um orçamento médio de participação anual de eventos de US $ 875.000.

• Expo de Prospect da América do Norte
• Ceraweek por S&P Global
• Petróleo mundial & Conferência de Gás
• Conferência Midstream Texas

Plataformas digitais e sistemas de comunicação

A empresa utiliza 3 plataformas primárias de comunicação digital com um investimento anual de infraestrutura digital de US $ 1,2 milhão.

Plataforma digital	Investimento anual
Site corporativo	$350,000
Portal de Relações com Investidores	$450,000
Sistema de gerenciamento de clientes	$400,000

Redes de parceria estratégica

A Hess Midstream LP mantém 12 acordos de parceria estratégica nos setores a montante, midstream e a jusante.

• ExxonMobil Corporation
• Chevron Corporation
• Enterprise Products Partners
• Morgan mais gentil

Canais de consultoria técnica e desenvolvimento de negócios

A empresa aloca US $ 2,3 milhões anualmente para iniciativas de consultoria técnica e desenvolvimento de negócios, com uma equipe de 28 profissionais especializados.

Categoria de consultoria	Alocação de orçamento
Consultoria técnica	US $ 1,4 milhão
Desenvolvimento de negócios	$900,000

Hess Midstream LP (HESM) - Modelo de negócios: segmentos de clientes

Grandes empresas independentes de exploração de petróleo e gás

A partir do quarto trimestre 2023, a Hess Midstream atende às principais empresas de exploração independentes com requisitos específicos de infraestrutura:

Empresa	Compromisso anual de volume médio	Duração do contrato
Recursos continentais	125.000 barris por dia	Acordo de longo prazo de 10 anos
Óleo de maratona	85.000 barris por dia	Contrato de infraestrutura de 8 anos

Principais corporações de energia integrada

O portfólio de clientes da HESM inclui grandes empresas integradas de energia:

• ExxonMobil: 250.000 barris por dia Midstream Services
• Chevron: 175.000 barris por dia Suporte de infraestrutura
• Energias totais: 100.000 barris por dia operações no meio da corrente

Produtores da região de xisto Bakken

Especíadas do segmento de clientes da região de Bakken:

Produtor	Volume de produção	Utilização do serviço médio
Whiting Petroleum	65.000 barris por dia	Cobertura de infraestrutura de 98%
Recursos EOG	110.000 barris por dia	Utilização de serviços médios de 95%

Operadores de energia offshore do Golfo do México

Detalhes do segmento de clientes do Golfo do México:

• Shell: 200.000 barris por dia infraestrutura offshore
• BP: 150.000 barris por dia Midstream Services
• Chevron Offshore: 180.000 barris por dia Suporte de infraestrutura

Investidores de infraestrutura média

Métricas financeiras de segmento de investidores para 2023:

Categoria de investidores	Investimento total	Retorno esperado
Investidores institucionais	US $ 475 milhões	7,2% de retorno anual
Empresas de private equity	US $ 250 milhões	8,5% de retorno projetado

Hess Midstream LP (HESM) - Modelo de negócios: estrutura de custos

Desenvolvimento de infraestrutura e despesas de manutenção

A partir de 2024, o Hess Midstream LP relata os seguintes custos relacionados à infraestrutura:

Categoria de custo	Despesa anual
Despesas de capital de infraestrutura de pipeline	US $ 287,6 milhões
Manutenção de ativos existente	US $ 42,3 milhões
Novo desenvolvimento de infraestrutura	US $ 215,4 milhões

Custos operacionais de pipeline

Redução de despesas operacionais para sistemas de pipeline:

• Manutenção operacional anual de pipeline: US $ 63,2 milhões
• Consumo de energia para operações de pipeline: US $ 18,7 milhões
• Sistemas de detecção e prevenção de vazamentos: US $ 5,4 milhões

Investimentos de conformidade regulatória

Área de conformidade	Investimento anual
Conformidade ambiental	US $ 22,1 milhões
Adesão à regulamentação de segurança	US $ 16,5 milhões
Permitir e documentação	US $ 7,3 milhões

Atualizações de tecnologia e infraestrutura digital

Detalhes de investimento em tecnologia:

• Sistemas de monitoramento digital: US $ 12,6 milhões
• Infraestrutura de segurança cibernética: US $ 8,9 milhões
• Plataformas de análise de dados: US $ 5,7 milhões

Gerenciamento de pessoal e experiência técnica

Categoria de custo de pessoal	Despesa anual
Total de custos de pessoal	US $ 94,5 milhões
Salários da equipe técnica	US $ 62,3 milhões
Treinamento e desenvolvimento	US $ 4,2 milhões

Estrutura de custo anual estimada total: US $ 796,4 milhões

Hess Midstream LP (HESM) - Modelo de negócios: fluxos de receita

Taxas de coleta e transporte

Em 2023, Hess Midstream relatou receita de coleta e transporte de US $ 1,14 bilhão. A empresa opera aproximadamente 1.200 milhas de coleta de oleodutos na formação de Bakken.

Fonte de receita	Valor anual	Porcentagem da receita total
Coleta de taxas	US $ 682 milhões	59.8%
Taxas de transporte	US $ 458 milhões	40.2%

Tobros de serviço de processamento e armazenamento

Os serviços de processamento e armazenamento geraram US $ 326 milhões em receita para 2023, com uma capacidade de processamento de 250.000 barris por dia.

• Receita de processamento de gás natural: US $ 214 milhões
• Castas de armazenamento cobranças: US $ 112 milhões

Acordos de receita contratados de longo prazo

Hess Midstream mantém contratos de longo prazo com uma duração média de 10 anos, garantindo US $ 2,3 bilhões em receitas futuras contratadas.

Tipo de contrato	Valor anual do contrato	Duração do contrato
Acordos de levar ou pagamento	US $ 1,8 bilhão	10-15 anos
Contratos de compromisso de volume	US $ 500 milhões	5-10 anos

Utilização de ativos e renda de otimização

A otimização de ativos gerou US $ 92 milhões em receita adicional para 2023, com uma taxa de utilização de ativos de 78%.

Midstream Infraestrutura Ganhos baseados em desempenho

Os ganhos baseados em desempenho totalizaram US $ 156 milhões em 2023, representando 13,7% da receita total do meio do meio.

• Incentivos baseados em eficiência: US $ 76 milhões
• Bônus de desempenho: US $ 80 milhões

Receita anual total para 2023: US $ 1,14 bilhão

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.