Hess Midstream Guides 2026 Free Cash Flow to $910-$960 Million as Volumes Stay Flat

โดย Zacks Investment Research·

Summary · why it matters

Hess Midstream LP is guiding 2026 adjusted free cash flow to $910-$960 million, up from $779.1 million in 2025, as capital spending falls to about $105 million from $247.5 million last year. At the midpoint, roughly $280 million of adjusted free cash flow after targeted distributions is expected to remain available for incremental shareholder returns and debt repayment, and management targets at least 5% annual distribution-per-share growth through 2028 while leverage falls below 3.0X in 2026 and toward roughly 2.5X by 2028. The cash-flow gain is offset by a flat operating outlook: full-year 2026 oil and gas volumes are guided broadly flat with 2025, and Adjusted EBITDA of $1.225-$1.275 billion is roughly flat at the midpoint versus $1.238 billion in 2025, after second-quarter oil terminaling fell 15% year over year, water gathering declined 12% and gas processing slipped 4%. Cash flow visibility rests on long-term commercial agreements with Chevron and third-party services that are 100% fee-based, mostly extend through 2033, and cover roughly 95% of 2026 revenues through minimum volume commitments, with fixed-fee rates adjusted annually for inflation up to 3%. HESM trades at 13.19X forward 12-month earnings, near its five-year median of 13.23X but above the Zacks sub-industry's 9.41X, and carries a Zacks Rank #2 (Buy) alongside a Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of D.