Hess Midstream (NYSE:HESM) reported fourth-quarter 2025 results on Monday that met analyst earnings expectations but fell slightly short on revenue, as severe winter weather in the Bakken region hampered throughput volumes.
The Houston-based midstream provider posted net income of $168 million, compared with $172.1 million in the prior-year period.
Net income attributable to Hess Midstream was $93.3 million, or $0.72 per Class A share, aligning with the consensus estimate.
The quarter was defined by a transition toward a "harvest" phase for the company’s capital.
Total capital expenditures fell 44% year-over-year to $47.6 million, following the successful completion of a multi-year infrastructure expansion.
This reduction in spending helped fuel adjusted free cash flow of $207.8 million, up from $164.3 million in the fourth quarter of 2024.
Operational performance also faced seasonal headwinds, with throughput volumes decreasing across all segments compared to the prior-year quarter.
Oil terminaling volumes fell 4%, gas processing dropped 1%, and water gathering declined 5%.
Despite these dips, the company successfully placed a new compressor station into service in January 2026, adding 50 MMcf/d of gas compression capacity to support future volume growth from its primary customer, Chevron (which assumed its stake in HESM following the July 2025 merger with Hess Corp).
Following the results, the company reaffirmed its 2026 guidance, which anticipates net income between $650 million and $700 million and adjusted EBITDA in the range of $1.225 billion to $1.275 billion.