Hess Midstream Partners LP

Hess Midstream LP reported second-quarter 2026 earnings of 75 cents per Class A share, up 1.4% year over year and 8.7% above the Zacks Consensus Estimate, even as revenues and other income declined 3.7% to $399 million. Lower throughput was the main drag on revenue, partly offset by higher tariff rates and third-party services, which more than doubled to $17.9 million from $8.2 million. Operating and maintenance expenses fell to $85.9 million from $94.1 million a year earlier, lifting the gross Adjusted EBITDA margin to 85% from 82%, though Adjusted EBITDA still slipped 0.7% to $313.7 million from $316 million. Management expects second-half volumes to exceed first-half levels, with full-year guidance of 450-460 MMcf/d for gas gathering, 435-445 MMcf/d for gas processing and 125-135 MBbl/d for both crude terminaling and water gathering, and it guided third-quarter Adjusted EBITDA to $310-$320 million as deferred maintenance and higher capital spending shift into the second half. Full-year Adjusted EBITDA guidance stands at $1.225-$1.275 billion, roughly flat at the midpoint versus 2025, while the Zacks Consensus Estimate for 2026 earnings is $2.94 per share, a 2.8% year-over-year increase.

Hess Midstream LP reported a climb in second-quarter earnings. Net income rose to $96.4 million, or $0.75 per share, compared with $90.3 million, or $0.74 per share, in the same period last year. Revenue fell 3.7% to $399.0 million from $414.2 million a year earlier.

Hess Midstream LP announced a quarterly cash distribution of $0.7888 per Class A share for the quarter ended June 30, 2026, an increase of $0.0096 per Class A share compared with the first quarter of 2026. The distribution will be payable on August 14, 2026, to Class A shareholders of record as of the close of business on August 6, 2026. Chief Executive Officer Jonathan Stein said the increase highlights continued execution of return of capital to shareholders and is in line with the company's targeted 5% annual distribution growth per Class A share through 2028.

Hess Midstream and Western Midstream offer dividend yields of 7.7% and 8.1%, respectively, outpacing the 4.9% yield of large-cap peer Enbridge. Hess Midstream, an $8.3 billion mid-cap operator in the Bakken and Three Forks shale regions, announced a distribution increase in January and expects at least 5% annual dividend growth through 2028, supported by free-cash-flow growth and minimum-volume commitments from Chevron, which accounted for 96% of its first-quarter revenue. Western Midstream, an $18.8 billion Permian Basin operator, has a five-year streak of dividend increases and forecast 2026 distributable cash flow of $1.85 billion to $2.05 billion, while its recent $1.6 billion acquisition of Brazos and $1.5 billion purchase of Aris Water Solutions strengthen its position in the Delaware Basin and water services. Both stocks have posted gains this year, with Hess Midstream up 16.2%.