Hess Midstream LP

Good day, ladies and gentlemen, and welcome to the second quarter 2024 HESS Midstream Conference Call. My name is Gigi. Now I'll be your operator for today. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. 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.

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

Thanks, Jennifer. Good afternoon, everyone, and welcome to HESS Midstream's second quarter 2024 conference call. Today I'll discuss our second quarter performance and review HESS Corporation's results and outlook for the Bakken. Jonathan will then review our financial results and guidance. In the second quarter, throughput volumes averaged 419 million cubic foot per day for gas processing. 126,000 barrels of oil per day for crude terminaling, and 124,000 barrels of water per day for water gathering. Throughputs increased across all segments of our business, with gas processing and oil terminating volumes increasing by approximately 7% and 8%, respectively, from the first quarter, primarily driven by strong HES performance. System availability remained high across our midstream assets and gas capture was particularly strong in the second quarter. Now turning to HESS upstream highlights. Earlier today, HESS reported second quarter net production for the Bakken averaged 212,000 barrels of oil equivalent per day, which was above the high end of their guidance range of 195 to 200,000 barrels of oil equivalent per day. Approximately one-third of the increase is from volumes received under percentage of proceeds contracts which do not impact HESS Midstream's throughputs or revenues. HESS anticipates Bakken net production will be in the range of 200 to 205,000 barrels of oil equivalent per day in the third quarter, reflecting lower anticipated volumes under percentage of proceeds contracts and planned maintenance at the Little Missouri 4 gas plant. HESS reiterated its plans to run a four-rig program in the Bakken in 2024. Turning to HESS midstream guidance, which was included in our earnings release this morning, with HESS's continued strong Bakken production and our focus on gas capture, we're raising our gas gathering and processing throughput volume guidance for full year 2024 to average between 425 and 435 million cubic foot per day and between 405 and 415 million cubic foot per day, respectively. This implies approximately 3% growth at the midpoint for the second half of the year and includes our expectations for roughly flat volumes in the third quarter, which incorporates HESS upstream guidance and lower midstream throughputs due to a planned week-long maintenance outage at the Little Missouri 4 gas plant. Consistent with prior guidance, we continue to make excellent progress on our 2024 capital plans and are focused on supporting HESS and third-party development in the Bakken. The progress of our multi-year projects to build two compressor stations and associated gathering pipelines continue as planned. We expect to spend more in the second half of the year as we continue construction activities. In summary, we remain focused on executing our operational priorities and safely delivering our growth strategy, which will continue to drive sustainable cash flow generation and the potential to return additional capital to our shareholders. I'll now turn the call over to Jonathan to review our financial results and guidance.