Hess Midstream Q1 net income drops slightly to $157.7 million

Hess Midstream (NYSE:HESM) reported first-quarter 2026 net income of $157.7 million, a slight decrease from the $161.4 million recorded in the prior-year period.

However, on a per-share basis, net income attributable to Class A shareholders rose to $0.68 per share, compared to $0.65 in Q1 2025, reflecting the impact of recent equity repurchases.

The company demonstrated strong operational cash generation, reporting adjusted EBITDA of $299.8 million and adjusted free cash flow of $237 million.

Net cash provided by operating activities totaled $253.3 million.

Hess Midstream continues to prioritize returning capital to shareholders through a combination of dividends and buybacks.

During the quarter, the company completed $60 million in total repurchases, including $42 million of Class A shares and $18.0 million of Class B units.

Capitalizing on the reduced share count, the Board increased the quarterly cash distribution to $0.7792 per Class A share.

This represents a $0.0151 per share increase over the fourth quarter of 2025, underscoring management's commitment to consistent distribution growth.

Elsewhere, throughput volumes for the quarter showed a mixed performance due to shifting production levels.

While gas processing increased 1% year-over-year, supported by higher third-party volumes, oil terminaling decreased 5% compared to Q1 2025.

Additionally, water gathering decreased 9% year-over-year.