HESM - Earnings call transcript Q4 2024

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Operator

Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2024 Hess Midstream Conference Call. My name is Gigi, and I'll be your operator for today. [Operator Instructions] Please be advised that today's conference is being recorded for replay purposes. I would now like to turn the conference over to Jennifer Gordon, Vice President of Investor Relations. Please proceed.

Jennifer Gordon

Gigi. you, Thank and quarter everyone, for in participating Good conference thank call. fourth earnings our afternoon, you

Hess Our was the and Midstream's website, securities call, www.hessmidstream.com. Today's within the earnings Gatling, measures. on release. meaning and filings laws. conference certain are John appears and earnings release today the these subject call now those that Officer. with issued A the Factors may known Officer; These Operating this financial measures statements or to in statements. SEC. Also such financial most on contains directly President Chief Stein, implied to the between uncertainties actual the set in to Risk me John may Chief include Jonathan projections the forth Financial today's of and GAAP other differences are of Gatling. unknown statements risks and non-GAAP differ we turn I'll results conference forward-looking section With be can in comparable over These cause federal reconciliation GAAP morning the of our and and measures from call found expressed risks discuss those financial

John Gatling

and give Conference processing an review execution volume throughputs. everyone, an was gas our Hess Corporation's for results. XXXX update then of our significant and afternoon, Hess year-over-year Good Quarter our We to results strong and Midstream. delivered XX% 'XX XXXX growth, of overview growth Jennifer. Thanks, performance financial will the outlook year Jonathan and Fourth Hess outlook of for a including longer-term Bakken. Call. in continued performance XXXX through Midstream's review I'll provide Today, welcome XXXX highlights, plans and

our strategically gas grow gas progress through release, from expected advancing XXXX. multiyear guidance than XXXX, profile by projects system grow issued with extending processing gas we made while on expansion. Today, MVCs our more growth key we XX% Additionally, and our excellent our planned volumes gathering to to

development planned volumes, by for driven processing the remains need gas growth activity Hess' additional reinforcing third-party and long-term Our increasing capacity.

net fourth equivalent per the day, Now impact of turning highlights. contracts, Bakken to averaged of Hess equivalent barrels per XXX,XXX Midstream percentage oil Hess In do not quarter, throughputs. barrels which production including of XX,XXX day from proceeds Upstream oil

oil XXXX, equivalent net day, XXXX first in marking full production averaged reaffirmed a of program severe January. projected XXXX The production of quarter increase. Hess in the XXX,XXX of drilling For XXX,XXX XX% in net decrease the range XXXX be winter equivalent plan barrels year-over-year Bakken to weather XXX,XXX day. to quarter attributed year to primarily per oil a to from its fourth X-rig per barrels and maintain is

day Hess volumes performance, per to with we In water foot oil turning volumes averaging per averaging day, XXX,XXX quarter, of million per volumes averaged barrels operational the strong of Now delivered XXX,XXX barrels XXX fourth cubic terminaling processing gas results. crude gathering water Midstream and day.

full XXXX, day, XXX,XXX processing per gathering gas of year foot of a XXX Midstream's year volumes per water volumes averaged full barrels Hess For volumes barrels XXX,XXX adjusted day, resulting crude billion. cubic terminaling oil and EBITDA $X.XXX averaged water averaged of in day million per

Hess to moving Now guidance. Midstream's

the XXXX, of quarter. weather quarter first the we the due impacts impact of the XXXX in first volumes to the January quarter severe fourth For be of lower in than to and weather-related of anticipate winter further possibility

compared volumes in volumes. year primarily approximately increasing gas XXXX, oil XXXX, activity and anticipate driven by full across For to Hess' systems our we and third-party development XX% growth

to our an includes XXXX anticipate planned per temporarily water foot day. million while Plant the period. gas to Driven annually to of and gathering of expected EBITDA terminaling cubic to billion. Building to we over gas for processing year approximately million million regulatory average grow oil and volumes maintenance expected XXX XXXX, XXX,XXX by day, have by adjusted foot XXXX and and $X.XXX $X.XXX is This XX% per and range water Tioga barrels expect the are by volumes, oil inspections is which at the to XXX impact volumes with XXXX approximately average of between expected volume of in gas and approximately growth, at on XX X% between XXX,XXX XXXX, to barrels volumes increase volume XXXX, per projected XX% We increase compared in in full to our and X% between per Gas volumes by same XXX,XXX crude reduce day. cubic a growth, billion volumes to midpoint average XXX,XXX day

the our our throughput Given year Once decade. we end XXXX. exceeding XXX this announced day To are on operational Capa XXXX, foot previously Plant. beginning the capacity in support growth processing gas this, cubic construction the at growth current the will through Gas least trajectory, we million third Hess of per new parties anticipate and plant address in from

add gathering to compression for capital Once of are well program. foot capital cubic day. for XXXX, system stations we year including volume-driven, and combined on potential new investments, per processing completing expected up project-based maintenance, are gas million, to cubic Midstream's approximately approximately expansions. In to million million compressor associated the operational, are and to dedicated focused million allocated Hess with X a XXXX ongoing XXX foot $XXX stations to Total million expand connects XX day to and turning to Now systems. expenditures gathering capacity, expected $XXX expenditures per $XXX be their the these gas with gathering and

in per the station million to fabrication of gathering to and projects necessary are gas on through completing Additionally, an demand. and range additional of expected growth XXX cubic million the meet Plant processing capital Plant. These starting million growing $XXX capacity to construction our provide This plan XXXX. Gas compressor capital expenditures maintain $XXX Capa We will the annual to approximately in includes XXXX. construction Gas and foot day Capa support the

generally expansions low-cost demand performance. and commissioning basin growth we gathering our projected to additional finalize of the as create and reliable beyond, and allocation on sustainable return to to Plant strategy in to results the to shift expect over Gas meet shareholders. I'll while we now remain investments Capa Jonathan as flow growing opportunities strong generate With executing focused focus to capital our summary, growth through the expect we review on disciplined, time over capital and will to XXXX of and While we projects cash financial guidance. XXXX. In decline financial progress, maintaining our our call turn spending operations

Jonathan Stein

XXXX XXXX, through continued XXXX, shareholders. everyone. Thanks, process of recently to ongoing capital prioritization Hess on and and including completed John, afternoon, our incremental with nomination provide details guidance Today, of outlook I our and summarize good in highlights our our discussed financial will return and

and $XXX of adjusted For XXXX, results, we XXXX. with billion. full This adjusted approximately year net $X.XXX represents of EBITDA delivered strong from a growth EBITDA income million XX% of

approximately XXXX supported throughput income, than grow line in volumes. Gas adjusted which each in Looking followed oil make by than and sight in of by followed XXXX. to revenues, in X% growing up by volumes, EBITDA and net adjusted to greater cash of each gas XX% our free XXXX, XX% flow X% in XXXX, XX% are approximately growth greater by growth and have of forward, we expected and of XXXX XXXX,

returned shareholder a return shareholders that XXXX, execute demonstrated returns. Since we capital a beginning billion have financial repurchases. shareholders through of $X.XX to to of prioritizes the of accretive track with strategy to continue differentiated We record

over the by distribution our since XX each XX% through we increases addition, distribution Class XX% and approximately have growth X% distribution by In of following and XXXX our XXXX. combination targeted share per repurchase, level increased annual A in

our a deliver differentiated peers. Furthermore, yield midstream month, adjusted while significant approximately balance our result, transaction shareholder this sheet unit per total in to of million share on is XXXX cash X.Xx basis our among free one an Class both per is our A first was highlighting basis. peers, we return returns highest $XXX of maintaining flow repurchase our also of leverage strength. and an Class As our of the A Earlier adjusted the earnings EBITDA that ability lowest accretive share of completed shareholder one

free distribution our flow repurchase. increase X% distribution included As we've the share annual targeted our adjusted growth fourth following and additional the past, Class per excess cash done in A utilizing an increase after quarter

and been started capital A for return As Class growth our framework, distribution annual of XXXX approximately every we XX%, has significantly a growth. year X% since for above share our result, targeted our

release morning, are guidance this prioritize and continuing a we our in returns sheet. announced balance to shareholder As strong

distribution $X.XX billion maintaining of We EBITDA. per X% expecting annual potential A financial target basis have at extended that capital our an ongoing XXXX flexibility through prioritization adjusted unit than allocation of greater target our of repurchases for and leverage through growth on while XXXX long-term least includes of Xx Class are share

to Turning results. our

$XXX to relative Total increased follows. Processing expenses, and quarter primarily by by for third gathering $X share resulting LMX increase our of was $XX million as to the fourth quarter, EBITDA attributable the the under cost increased changes in was higher the million, lower for quarter. from net and revenues amortization, $XXX earnings the costs for EBITDA omnibus $X adjusted quarter million. increased by of primarily was pass-through total income million depreciation employee quarter. For fourth revenues $XXX volumes revenue offset excluding million, excluding and proportional approximately primarily pass-through throughput third compared secondment following: in approximately net revenues, by approximately the million, driven higher and by million revenues, segment our allocations partially G&A maintenance, of million Adjusted quarter $XXX The $XXX to by $X resulting approximately adjusted agreements, increased compared for EBITDA the million. third general fourth to and in

EBITDA deferred XX% free our had at were XX%, quarter drawn leverage. approximately of adjusted our our We balance resulting million. on of net quarter approximately revolving interest, target, $XX facility was margin was and million, for expenditures $XX Fourth gross operating credit a capital in costs, at continued amortization fourth excluding highlighting Our approximately approximately strong maintained adjusted $XX the cash million year-end. million, $XXX of finance flow above

beyond. fixed escalator rates our year that capped based approximately our XX% each Turning rates represent in at X%, of resulting XXXX. fees, rates through increasing with are to and an steadily of The our increase majority systems inflation XXXX on for revenues

XXXX, on water we rates rates. XXXX our our through for rates rate For of reset annual all XX% tariff systems rate Based across continue our XXXX. setting through revenues, our terminaling our are represent to process redetermination and process than higher systems that approximately this gathering

volumes. to Turning

as our new our of per with expected across of by to expect foot XXXX, XX% XXXX. the planned and Hess that that gas exceed through downside at growth and investment year we by As in this set each meet of and This Gas approximately our guidance in are years on XXXX. Based in XXXX gas systems grow be XXXX. In volumes to to XXXX. X% from and provide continued growth set John volumes our rate, from gas protection are we Hess construction XXX advance continue all volumes this XXXX expect approximately day opening to throughputs Oil grow our parties. each processing XXXX XXXX. year volumes capacity XX% million underpinned MVCs in expected through expected to our by X% approximately in XXXX be of of described, release is we XX% current growing X in morning, in oil processing third gas aligned XXXX, plant by nominated cubic in in MVCs approximately followed through in expected processing this to and is

XXXX nomination the required nominated based of XXXX and of and newly Hess established in each were were As process, volumes system on while MVCs for increase, the reviewed that for XXXX year. MVCs XX% part were for

for financial beyond. XXXX our guidance to and Turning

of growth $X.XXX million by For described. as growing the growth revenues of our year expect and net from volume adjusted John billion $X.XXX to of is adjusted approximately at $XXX million physical This the supported EBITDA and income range full EBITDA across $XXX oil XX% to of systems XXXX, we gas midpoint continued billion.

target a We approximately EBITDA adjusted XXXX. in continue gross XX% to margin of

million expenditures expect a and targeted $XXX adjusted excess $XXX adjusted expected to basis. expect increasing flow cash of adjusted growing full million, between to With total cash and after flow $XXX year for approximately leverage we our of we be distributions. below $XXX of generate on million our Xx funding XXXX XXXX, our free For adjusted target fully million EBITDA, EBITDA capital approximately with

$XXX For for XXXX, the million be million we net the events adjusted million impact to $XXX weather approximately January first to potential weather approximately winter through severe $XXX to and to in expect income additional EBITDA quarter. of winter be including the quarter and $XXX million, the of

oil across EBITDA adjusted increasing For growing expect quarter, volumes the remainder consistent with gas systems. we and of each XXXX,

X% oil targeted Looking steadily supports incremental expected gas by capacity and flow adjusted we that annual of for by XXXX based to financial in XX%, least in providing greater XX% beyond growth strategy. margin and XXXX, trend that than to inflation cash EBITDA in annually growing free XXXX, and followed XXXX. In in both grow increase significant to our financial growth on adjusted we we to continued greater by the XXXX, shareholders. we escalator expect have in to are approximately volume, our gas adjusted with supported to that of grow clear least flow decade, at greater continue increasing processing gross volumes the the continue continue capital With than cash expenditures greater return gas adjusted line rest in Supported of and that adjusted flexibility inflation, growing growth decade. Hess EBITDA fees with than X% relatively expect are rates visibility in by XXXX, growth then rest at and capital by free to EBITDA a for XX% lower that and of stable EBITDA grow the to than in expect adjusted volumes XXXX, EBITDA

prioritize In addition, shareholder return with continuing framework. to we are of capital our returns

to First, share X% distribution our through extending our distribution growth Class continuing of targeted least grow at are annually XXXX. we by per A base

is than and at our XXXX flexibility growth we XX% of and relative XXXX, adjusted significant base below distribution adjusted capacity to returns incremental below through and Xx greater free level X% long-term Second, EBITDA adjusted cash distribution. With adjusted to in to annual growing leverage to flow leverage generate target. continue expected growth XXXX of X%, free expected expect greater we XXXX flow excess beyond targeted to have excess cash for potential of adjusted in than financial EBITDA of our beyond shareholder X.Xx by decline the and EBITDA distribution, in leverage providing our this our least end

expect on As includes and for unit and potential we these a our incremental delivered a growing concludes be look focus this for consistent differentiated in per than beyond through a cash to questions. through have X% repurchases with to period growth level visible per shareholders. This our balance XXXX underpins to ongoing a and answer now result, financial allocation capital have trajectory capacity, return to to to for a pleased least are metrics will and growth. In of capital year repurchases over operational we that of that unique We'll summary, billion greater the multiple targeted operator. annual call the with strong the with leverage financial remarks. XXXX potential flexibility significant distribution Class distribution the associated forward happy our at turn our and increases share financial A my strategy any of $X.XX I

Operator

UBS. Naomi Our Instructions] from question from the [Operator of line first comes Marfatia

Naomi Marfatia

growth multiyear your is question on first outlook. My

slightly established EBITDA in alluded 'XX 'XX and growth its MVCs, have increased to HESM So XX% and 'XX you all 'XX. MVCs and

kind -- we EBITDA of curious see growth think like growth on this So -- and this based you off is upside about an just is could potentially your to MVCs target? how

Jonathan Stein

turn those growth. it that growth to This I'm how start. business what point we going of I'll walk John view. set Jonathan. talk volume over and Maybe of MVCs I'll through is about terms the the the in a of of math mean underpinning to just to from kind

I'm processing. So as we use to said, going gas

we've revenues. the gas of in said our XX% past, As is

in XXXX. provided in we X% growth of and focusing guidance So XXXX on that, XX% growth

you they provide underpin that So at that the MVCs, look to see visibility growth. volumes if can you our

our million more That's for at take, guidance, our XXX you X.X% example, the cubic XX%. Compared per up XXXX, implies feet So MVC day. midpoint grossed growth. than of with if XXXX that

up As cubic there, we XXX day. feet look at XXXX, growth our MVC million that's per

rate, gets TGP you add rate. On Hess gets a million through the of maintenance. maintenance primary really X% is You the our per feet for which that impact the that, you about driver That John of XXX XX day, per with being the growth the third-party volumes in additional need top to million back to cubic cubic period. and annual the mentioned day growth add to feet growth volumes that the

over growth. give So He on it John. now that turn the what's with kind can I'll background to that, driving you of

John Gatling

Jonathan. I Sure. Thanks, question. Yes, a mean it's good

both be We growth, oil and Hess' continuing 'XX Jonathan overall, continue plan. of to longer efficiency and 'XX to as 'XX X% from as X% improves, the time, oils overall the cycle got growing is XX% program productivity on to we've on laterals, mentioned, 'XX. generate to to 'XX focused on the And X-rig side improved the from productivity wells, 'XX, development and side. And from drilling gas

our are is outpacing addition, a gas in In the The basin bit expected. GORs continuing as to oil increase. little

out mature, wells over naturally expected. so GOR time, the As exactly increases playing it's we as

from perspective, also And that growth our we'll a but from infrastructure processing. perspective, supports both need additional gathering additional from field so trajectory the the

sight showing good that and between on in and there's that, MVCs growth guidance line set given the now and we've even the based we've XXXX the of call. earnings beyond So actually trajectory the

Naomi Marfatia

in Bakken of been I question Bakken thinking outlook That's long-term on HESM then us you second my help via is helpful. is is M&A? there thinking And any in in recently. future? beyond HESM the understand how some Bakken at either on And Bakken. Can if quite point expanding organically about know has growing activity or in your

John Gatling

part of to expand There's at the question of Sure. your I first. plans mean Well, outside Bakken. maybe the no. I'll no hit last point, this

happy really, got. we've the think we're I position with really

rock production. opportunities we we're as significant M&A best third But growth growth in third-party always organic additional extremely basin. then strategic looking some underpinned by perspective, to the is trajectory growing. capture a Hess. To it bolt-on there perspective, will about the volumes, our look interested do really is third-party on bar the Hess But our -- is growth a leverage our pace and anticipate with. From question for parties Hess continue top obviously on to Hess is opportunities underpinned out us of the to from basin. continue is same really the have footprint is grow organic those the with support the in sponsor in opportunities. underpinned partner There's to the Our sits We're going work to and We -- of of that right at at and versus the by built high. in, activity, your at really we infrastructure

Our is the really that's approach the disciplined thing us of years. kind stabilized over

As the process in rightsized It's gas through the right of the planned end plant. the even I in naturally foot at own mentioned, building trajectory day. cubic we've XXX that million with per of plays decade that. beyond got we're our It and growth

but infrastructure, So at to our footprint. really make from the into opportunities happy sense integrate and we're always interested that we're perspective, nicely look with strategic bolt-on our

Operator

[Operator Doug from question Instructions] Irwin of Our line Citi. comes the next from

Douglas Irwin

on to Maybe CapEx start. one

maybe with of curious budget what's meaningful CapEx 'XX out you just of build-out? the wondering on could in just longer-term step higher near once driving color above a moving pretty I look think it guide you growth to higher, Is processing little what a fair came get little the CapEx Just to your come then the more as online. some down a assume on and beyond if 'XX. And on you relatively phase a these see you view higher provide come bit that budget projects term, 'XX growth like both might

John Gatling

really in perspective, hand the 'XX really our CapEx then from of from productivity on over Maybe for wells, drilling Hess start Yes. has of overall phasing. has a bit and wells, wells drilling little main to efficiency it bringing both 'XX seeing longer-term the the a activity been great longer component and CapEx Jonathan From view. I'll also sooner. We're an They're faster perspective. job done good the laterals.

trying that growth following the just Hess maintain well. generally the to really trajectory parties with on are we're -- as pace side. that's same third And So

growth We represents range, of of of kick $XXX for would be our it's wanted in that. infrastructure where we acceleration be CapEx We end to will as through expansion, then our spending anticipate is off going the we to XXXX 'XX be to So of XXXX. And construction 'XX to XXXX, will the about that million ahead that, same. of down to an as step to actually bit fabrication in additional and decade going $XXX infrastructure. There there the approximate in start kind be post and to the then that? little after a I it's that's in is and million growth gas trajectory operationalize Hess think the to million anything it some that compression how drill the right. place that. doing we'll able after approximately for expect, through of opportunity that support decides with but to opportunity see mean spending a has do the you into some we add it, XXXX do activity Jonathan, bulk be $XXX expect plant to

Jonathan Stein

No, was good. that

of I highlighted ongoing budget, of -- we've think capital $XXX growth is capital. as million our our

some years, really kind online. declining of of busy John There'll So continued that of next of declining. next the coming -- may that the that's come both really new now. And the about just couple through about really, would visibility really the think we'll beyond. And capital of I with years, the side said, growth are but XXXX, capital. of on highlight, through have to only there, can the talked ongoing but it decline the decade. of about that's some as but about gas expect side, additional where the We be exciting 'XX be one and plant and project then we've to then projects the right And relative visibility really talked these is in kind And beyond over growth on 'XX, just think volume financial that's over phasing certainly rest I to there while we rest general, the can about some we're we of we couple capital, things for it's as that be online that then talk talking today not the decade. talk growth that supports capital through now

that the growing have for rest of the with really And decade as So really rest just growing declining about, flow, we'll not visibly means through that cash EBITDA of provide free decade. growth, us the the and through that we've to today, capital, the continue but but now the will talked the really through to opportunity to through really only continue not distribution decade. rest potential fund that fund to the XXXX, for we've incremental return extended capital, of as of visibility XXXX

exciting really an the really exciting we which right line our differentiated, is through of now already financial decade. just can XXXX, that not time we So journey, give of rest metric now in and the time are but through really where we have the it's growth clear visibility our to sight volume

Douglas Irwin

your rather than directly uses might relative sponsors. less specifically, actions the thoughts my second that buybacks moving sponsor just the get heavily from attractive become year, That's the the public line And cash really having happen wanted the factor at repurchase this into that latest all in from I I helpful. I'm how other the you've context question, to of I'm capital guess eventually the And sponsor you're into level could I guess forward. 'XX. extended curious down program around Okay. just to wondering if decisions potential your changes allocation just if And of to potentially

Jonathan Stein

I No, our achieve that. really our we're our highly a proud repurchases. on very of by deliver we're of And Yes. and the of at cash level. MVC so funded our same increases is through parts, the then X% matching return our and lot maintaining we've then framework that distributed done, That, levels, And capital that's repurchases Sure. positive even capital think off dividend we've to at of really are X share feedback return what with total growth. -- count our annual really we in really, those incremental lower confident distribution ability can with this, gotten

even though that just really targeted per us double in what we've XX%, average really since we allowed at this base. started has distribution our it's XXXX, X% approximately year growth growth, have since our least been distribution almost really So program, had we've

and So now billion that at in year forward repurchases multiple times those done then distribution of the utilize financial least talked looking matching forward, we as certainly flexibility, $X.XX about past, we've for to level I've as per unit going with and described. expect increases

in think change potentially change does as that. terms think of to I really ownings how shareholder change, I real no that our

didn't we I future would the in XX% the I as certainly that In we forward, something go there is a are ownership, becomes public the repurchases as were a that really change in percentages the we potential sponsor we size. time, being public at of and the of incorporate because that's think would over this certainly, point, certainly public? mean, we the of the the float past, of and include kind liquidity consider. that At public concern. we the building up the our less -- the

shareholder program, we we're something to consider particularly would a in terms change. taking changes, something opportunity of total program May the in adjust, I real the no on sector. as really ownership about, there's deliver -- now, repurchase that as the yields public I but described, it's right one change certainly, step an continuing certainly of to the Not the talked execute consider. ownership but the really, to But highest So something the depending into as bring and we'd would to really, program, program. the continue certainly something,

Operator

Jackie Sachs. from from Koletas line Our Goldman the next question of comes

Jacqueline Koletas

the do that want just forward in to 'XX, given X.Xx get your how reach you below I start, as First, going target? to of think use leverage expectations you about below

Jonathan Stein

Right.

that's if you think So we $X.XX elements. the capacity if will, have, billion X really, by said you what we've of funded about is, that

leverage distributions. and is cash free after First then flow capacity, excess

comes you from about with billion. If that let's given, come kind leverage of least the at turn, half meaning the we've capacity, math what of about half do assume with $X.XX is that half you'll a EBITDA up of the say, growth

The target to about $X.XX is a flow cash free great That's a on able of distribution, focus really our our exceeds priority. be objective to growth, we're X% return in half of billion. Certainly, position continue you other to that exceeds as capital. that gives other half -- primary is the

in talked look said at about, opportunities. of I to my course, John we'll bolt-on comments. As continue

of us, very continue continuing priority but fortunate. not evaluate For bit opportunities, high. we're bar the our will a -- an is to or, but It's and, be an

And that, to growth, absent do and repurchases organic focus we've returns shareholder so through not increases. We returns of have dividend on significant course, anything. as then there's incremental through need we'll a and to done continue

Jacqueline Koletas

the there. January. of is weather basin in rest What for just recover the those how quarter And we the have up, do has And to the the guidance Appreciate beyond that expect occurred color you does quarter? what adjusted assume in months for left? first following guidance already impacts the

John Gatling

Yes.

as So tends also been little operational I from a speaking, overall from more for bouncing to some think perspective, the bit first kind has and temperature challenges the of unpredictable be well. quarter wind weather bit perspective. an a weather to Generally January, around contributing a just little

has magnitude, the seen is recovery less that. I obviously XX%. order is would we've think than down Hess basin, impact, the strong. overall of down again, about say and So I been

us. expect to ahead still online, X volumes more of months but we We at least X of -- weather more get back have

our little thoughtful quarter. So manage but approach we're the to to into first be conservative maybe just expectations going on first and to just bit trying a quarter, trying

can Hess recovers our we kind first numbers I like overall, basin. the we as think focused that of feel are a quarter we're deliverable, So and -- on as volume just in supporting it's best

Jonathan Stein

look is add just implies first thing guidance, on then EBITDA our that would through going really that right, to on you guidance QX full quarter and at One if XX% take year our QX I be average, is average. up EBITDA

So really Jonathan I growth to significant be described, the of that rest throughout year. expect phased, growth the volume growth. as would

step-up and certainly, the year. grow. just we past So continued EBITDA it's expect a all the get things significant the to described, once that weather to rest of continue But certainly John growth for and that the

Operator

from Chase. Katz JPMorgan from the question comes Our Noah of next line

Noah Katz

about How could for to and each seasonally it costs throughout if would should helpful walk 'XX? EBITDA be quarter we First, XXXX. compared of business provide a of you expectations the think

Jonathan Stein

Yes.

to start that really what highest had cost has advantage would we've getting done way about good, get optimize, the in QX, quarters. other is, severe back of say think seasonality is into different work Really, particularly in we amount really of winter than a QX quarters. the you lower we is generally, to in have to the weather. of the where the QX before I and I for worked will on take If and really credit really then the our types bit let's have, team, that say, quarters side. weather QX team potential North QX this are the typically to Dakota, activity. And the think QX

So it's a bit milder.

We have bit had to be years do a in we'll able more QX.

a so So little that's you a bit in as kind a finalize of year, bit of that provides of QX, kind in always variable. Also of QX, this variability. allocations always saw

expect side, throughout the general, year. thing. that quarter-on-quarter. On steady that and on type vary of But steady online really Obviously, in growth depending will all wells the growth volume just

As we gas and that in well. as online, with see bring then continue growth oil, to associated continue more growth we to wells in

Noah Katz

And quarter, as for consistent? around Or you this million should looking exceed at XXXX? quick in stay expect threshold in just repurchases you then could the trend to of follow-up, $XXX relatively do we a this every think

Jonathan Stein

per look, repurchases year. been Sure. we Yes. -- with would doing, what What consistent I multiple say we've is, expect

stone, saw as that, kind was say amount. quarter. $XXX as million, really say, here to that of at we've in at execute of that beginning set would have, before as would XXXX, that's just QX, year-end. -- I the do think We the a already we did in about but QX you $XXX Certainly million kind But got a want doing more and I we that right not we that, the all it of of of into didn't holidays been

the for certainly what catch-up kind so year, QX, way. So would think done the year, then multiple expect of kind more but throughout repurchases I And of that that set it was the of pace, per in past. we've similar we'll a of to

Operator

conference today's for concludes participating. This call. you you. Thank Thank

now may You disconnect.

Hess Midstream (HESM) 29 Jan 252024 Q4 Earnings call transcript