Hess Midstream Partners LP (HESM) Misses Q1 EPS by 1c, Revenues Beat
Hess Midstream Partners LP (NYSE: HESM) reported Q1 EPS of $0.32, $0.01 worse than the analyst estimate of $0.33. Revenue for the quarter came in at $174 million versus the consensus estimate of $171.11 million.
- Acquired crude oil and gas gathering assets of Summit Midstream Partners’ Tioga Gathering System.
- Announced plans to expand natural gas processing capacity at the Tioga Gas Plant to 400 million cubic feet per day (MMcf/d), expected to be in service in mid-2021.
- Net income was $95.3 million. Net cash provided by operating activities was $126.1 million.
- Adjusted EBITDA1 was $128.3 million, of which $25.0 million was attributable to Hess Midstream Partners LP.
- DCF1 of Hess Midstream Partners LP was $24.7 million resulting in 1.13x DCF coverage of distributions for the period.
- Increased quarterly cash distribution to $0.3833 per unit, an increase of 15% compared to the prior-year quarter.
- Compared with the prior-year quarter, throughput volumes increased 40% for crude oil gathering, 33% for crude oil terminaling, 11% for gas processing, and 7% for gas gathering driven by Hess Corporation’s growing production, capturing additional third-party customer volumes, and continued strong operating performance of our assets.
- Hess Midstream reaffirms its previously announced guidance for full year 2019.
Commenting on the first quarter 2019 results, John Gatling, Chief Operating Officer of Hess Midstream said, “Hess Midstream Partners is off to a strong start in the first quarter of 2019, achieving significant milestones including completing the acquisition of Summit Midstream’s Tioga crude oil and gas gathering assets, increasing our total compression and gas gathering capacity and announcing plans for a major gas processing expansion. We continue to capitalize on opportunities to create optionality throughout our system. We are positioned well for significant growth in the second half of 2019 and in the long-term.”
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