HESMMEDIUM SIGNALFINANCIAL10-K

HESM delivered strong financial performance with 58% net income growth while significantly increasing shareholder returns through expanded buybacks, though cash reserves declined notably.

The substantial increase in net income alongside higher share buybacks demonstrates strong cash generation and management's confidence in the business. However, the 56% decline in cash reserves warrants monitoring to ensure adequate liquidity for operations and growth investments.

Comparing 2026-02-25 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

HESM showed robust profitability with net income surging 58% to $353M, while simultaneously increasing share buybacks by 33% to $400M, reflecting strong cash generation capabilities. The company reduced current liabilities by 14% and expanded outstanding shares from 117M to 129M shares, indicating both debt management and potential equity financing activities. However, cash reserves dropped significantly by 56% to just $1.9M, which may signal either aggressive capital allocation or potential liquidity constraints that investors should monitor closely.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+58.2%
$223.1M$352.9M

Net income grew 58.2% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
-55.8%
$4.3M$1.9M

Cash declined 55.8% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Share Buybacks
Cash Flow
+33.3%
$300.0M$400.0M

Share repurchases increased 33.3% — management returning capital, signals confidence in intrinsic value.

Current Liabilities
Balance Sheet
-14.4%
$219.3M$187.8M

Current liabilities reduced — improved short-term financial position and working capital health.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-27
ADDED
129,403,244 Class A shares representing limited partner interests in the registrant were outstanding as of February 18, 2026.
Words such as anticipate, estimate, expect, forecast, guidance, drive, could, may, should, would, enable, believe, intend, focus, potential, project, plan, trend, predict, will, target, opportunity and similar expressions, and variations or negatives of these words, are intended to identify forward-looking statements, but not all forward-looking statements include such words.
These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and other factors, many of which are beyond the Company s control and difficult to predict.
Therefore, actual outcomes and results may differ materially from our current projections or expectations of future results expressed or forecasted by these forward-looking statements.
Caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date of this report.
References to Sponsor or Sponsors refer to (a) Hess and GIP II Blue Holding, L.P.
( GIP ) when referring to periods prior to May 30, 2025, (b) Hess from May 30, 2025 to July 17, 2025, and (c) Chevron from July 18, 2025.
As used in this report, the term Chevron may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole.
All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
BUSIN ESS AND PROPERTIES Overview We are a fee-based, growth-oriented, limited partnership that owns, operates, develops and acquires a diverse set of midstream assets and provides fee-based services to Chevron, its subsidiaries, and third-party customers.
REMOVED
116,736,900 Class A shares representing limited partner interests in the registrant were outstanding as of February 19, 2 025.
Words such as anticipate, estimate, expect, forecast, guidance, could, may, should, would, believe, intend, project, plan, predict, will, target and similar expressions identify forward-looking statements, which are not historical in nature.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future.
As and when made, we believe that our forward-looking statements are reasonable.
Unless otherwise stated or the context otherwise indicates, references in this report to Hess Midstream Operations LP, the Partnership, us, we, our or similar terms, when referring to periods between April 10, 2017 and December 16, 2019, refer to Hess Midstream Operations LP (formerly known as Hess Midstream Partners LP, the predecessor registrant to Hess Midstream LP), including its consolidated subsidiaries.
BUSIN ESS AND PROPERTIES Overview We are a fee-based, growth-oriented, limited partnership that owns, operates, develops and acquires a diverse set of midstream assets and provides fee-based services to Hess Corporation ( Hess ) and third-party customers.
We are managed and controlled by Hess Midstream GP LLC ( GP LLC ), the general partner of our general partner.
Hess dedicated substantially all of its existing and future owned or controlled production in the Bakken under our long-term, fee-based agreements and intends to use us as the primary midstream vehicle to support the growth of its Bakken production assets and grow its midstream business.
HIP was originally formed in 2015 as a 50/50 joint venture between Hess and Global Infrastructure Partners, a part of BlackRock ( GIP and, together with Hess, the Sponsors ).
On October 22, 2023, Hess entered into an Agreement and Plan of Merger (the Chevron Merger Agreement ) with Chevron Corporation ( Chevron ) and Yankee Merger Sub Inc., a direct, wholly-owned subsidiary of Chevron ( Merger Subsidiary ).
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