Hess Midstream trims growth plans as Chevron cuts Bakken rigs

[Hess Oil Company Fuel Depot]
yosmanor/iStock Editorial via Getty Images

Hess Midstream (NYSE:HESM [https://seekingalpha.com/symbol/HESM]) -1.9% post-market Thursday after providing updated guidance [https://seekingalpha.com/pr/20237920-hess-midstream-lp-announces-updated-guidance] for the rest of FY 2025 based on updated expectations, and for 2026-27 based on an expected decrease in Bakken rig activity by Chevron (CVX [https://seekingalpha.com/symbol/CVX]) from four to three drilling rigs beginning in Q4 2025.

Hess Midstream (NYSE:HESM [https://seekingalpha.com/symbol/HESM]) said it continues to expect long-term growth in gas throughput volumes through at least 2027 in the Bakken while oil throughput volumes are seen plateauing in 2026 due to lower planned rig activity.

The company also said it now expects relatively flat adjusted EBITDA in 2026 compared to 2025, while reducing FY 2025 gas throughput guidance to 455M-465M cf/day with gas processing volumes of 440M-450M cf/day, based on adverse weather conditions and maintenance in Q3 and lower expected third-party volumes in Q4.

Q3 2025 net income and adjusted EBITDA is expected at the lower end of previously announced guidance and FY 2025 net income and adjusted EBITDA is anticipated at the lower half of the prior guidance range, the company said.

MORE ON HESS MIDSTREAM

* Hess Midstream: Chevron Clarity Nears (Downgrade) [https://seekingalpha.com/article/4812126-hess-midstream-chevron-clarity-nears-downgrade]
* Hess Midstream: Valuations Are Tricky, Technicals Are Pricing In Risks [https://seekingalpha.com/article/4801778-hess-midstream-valuations-are-tricky-technicals-are-pricing-in-risks-hold-for-now]
* Hess Midstream: GIP Is Gone [https://seekingalpha.com/article/4800576-hess-midstream-gip-gone]