Hess Midstream LP

Good day, ladies and gentlemen, and welcome to the fourth quarter of 2025 HESS Midstream Conference Call. My name is Gigi, and 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 morning, everyone, and thank you for participating in our fourth 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 factor section of HES Midstream's filings with the SEC. Also, on today's conference call, we may discuss certain 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 Jonathan Stein, Chief Executive Officer, and Mike Chadwick, Chief Financial Officer. I'll now turn the call over to Jonathan Stein.

Thanks, Jennifer. Welcome, everyone, to our fourth quarter 2025 earnings call. Today, I will review our 2025 performance, our 2026 and long-term guidance issued in December, and then I'll hand the call over to Mike to review our financials. In 2025, we continued our record of strong performance execution. completing our multi-year projects on time and on budget, and strategically growing our gas gathering and compression system. With the system now substantially built, our projected capital spending will be significantly lower. For 2026, we expect to spend approximately $150 million, a 40% reduction in capital spending relative to 2025. We expect our capital spend to decrease even further in 2027 and 2028. to less than $75 million per year. This lower capital highlights our ability to leverage our historical investments to drive significant free cash flow generation that supports our unique combination of shareholder returns and balance sheet strength. Through a combination of targeted 5% distribution per Class A share growth through 2028, potential incremental share repurchases, and debt repayments. Now turning to HESS midstream results. Fourth quarter volumes were generally flat year over year, but down relative to the third quarter due to severe weather through the month of December. Gas processing volumes averaged 444 million cubic feet per day. Crew terminating volumes averaged 122,000 barrels of oil per day, and water gathering volumes averaged 124,000 barrels of water per day. For full year 2025, HESS Midstream's gas processing volumes averaged 445 million cubic feet per day, crude termling volumes average 129,000 barrels of oil per day, and water gathering volumes average 131,000 barrels of water per day, resulting in full-year adjusted EBITDA of $1,238,000,000. Looking forward for the first quarter of 2026, we expect lower volumes across our system as severe winter weather has continued through January and into the start of February, together with normal contingencies for the rest of the winter period. On a full-year basis, we are reiterating the volume guidance that we gave in December for the full year of 2026 and expect growth in volumes across our system through the rest of the year, consistent with historical seasonal volume expectations. With revenues that are approximately 95% protected by MVCs on a full-year basis, we anticipate net income and adjusted EBITDA to be higher through the rest of 2026 relative to our first quarter guidance. Looking beyond 2026, leveraging our historical investment in infrastructure and consistent with Chevron's optimized development program for the Bakken, we continue to expect 5% annualized net income and adjusted EBITDA growth and approximately 10% annualized adjusted free cash flow growth through 2028 that is supported by gas volume growth contracted annual inflation tariff rate adjustments, and low operating and capital spend. In summary, with adjusted EBITDA growth and a moderating capital program, we expect significant adjusted free cash flow generation in 2026 of $850 to $900 million, reflecting 12% growth over 2025 at the midpoint, followed by annualized growth of approximately 10% through 2028, which we expect to use for incremental shareholder returns, and debt repayment, above and beyond our 5% targeted distribution growth that can be delivered even at already set MVC levels. With that, I'll hand the call over to Mike to review our financial performance for the fourth quarter and guidance.