Hess Midstream misses Q1 top and bottom consensus; updates FY23 outlook
- Hess Midstream press release (NYSE:HESM): Q1 GAAP EPS of $0.47 misses by $0.12.
- Revenue of $305M (-2.4% Y/Y) misses by $7.49M.
- Adjusted EBITDA for the first quarter of 2023 was $239.0 million. Relative to distributions, DCF for the first quarter of 2023 of $196.6 million resulted in an approximate 1.4x distribution coverage ratio.
- Adjusted Free Cash Flow for the first quarter of 2023 was $142.2 million.
- Throughput volumes increased 7% for gas processing and 6% for gas gathering in the first quarter of 2023 compared with the first quarter of 2022 primarily due to higher gas capture.
- Throughput volumes in the first quarter of 2023 compared with the first quarter of 2022 decreased 8% for crude oil gathering and 4% for terminaling primarily due to lower production and lower third-party volumes.
- Capital expenditures for the first quarter of 2023 totaled $57.3 million, including $54.4 million of expansion capital expenditures and $2.9 million of maintenance capital expenditures.
- Guidance: Hess Midstream continues to target at least 5% annual distribution growth per Class A share through 2025 from this new higher level with expected annual distribution coverage of at least 1.4x and continues to prioritize financial strength with a long-term leverage target of 3x Adjusted EBITDA.
- For FY23: Adjusted EBITDA $990M – 1,030M; Adjusted free cash flow of $605M – 645M.
- For 2024 and 2025, Hess Midstream continues to expect organic throughput volume growth across all systems relative to 2023 volume guidance.