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• It's like Union Pacific for crude oil and natural gas, owning and operating essential pipelines and infrastructure.
• It's a smaller-scale Kinder Morgan (KMI), specialized in energy infrastructure for the Bakken region.
• It's like Prologis, but instead of warehouses, they own pipelines and processing plants for oil and gas.

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• Crude Oil Gathering and Processing: Services for collecting and stabilizing crude oil from production wells for further transportation.
• Natural Gas Gathering and Processing: Services for collecting, dehydrating, and processing raw natural gas, including NGL extraction, from production wells.
• Natural Gas Liquids (NGL) Transportation and Storage: Services for transporting and storing natural gas liquids, which are byproducts of natural gas processing.
• Produced Water Gathering and Disposal: Services for collecting and safely disposing of water that is extracted along with oil and gas from wells.

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Hess Midstream (HESM) primarily sold its services to other companies, specifically its parent entity, rather than to individual customers.

Major Customer:

• Hess Corporation (Symbol: HES)

  Hess Midstream's business model was intrinsically tied to its parent company, Hess Corporation. As a master limited partnership (MLP) formed by Hess Corporation, HESM's primary purpose was to own, operate, and develop midstream assets that supported Hess Corporation's upstream exploration and production activities, predominantly in the Bakken Shale play in North Dakota. Hess Corporation served as the anchor customer, accounting for substantially all of Hess Midstream's revenue through long-term, fee-based agreements for crude oil, natural gas, and natural gas liquids gathering, processing, and transportation services.

Please note: Hess Midstream (HESM) was acquired by Energy Transfer LP (ET) in October 2022 and is no longer a standalone public company. The information above identifies its major customer when it operated as a distinct public entity.

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Jonathan C. Stein, Chief Executive Officer

Jonathan C. Stein was appointed Chief Executive Officer of Hess Midstream GP LLC effective July 18, 2025. He previously served as Chief Financial Officer of Hess Midstream GP LLP from September 2019 to July 2025. Mr. Stein also held roles as Senior Vice President, Strategy and Planning, and Chief Risk Officer for Hess Corporation. He joined Hess in 2001 and played a leadership role in the formation of the Hess Midstream business entity and its subsequent initial public offering. Before joining Hess, he was a consultant with Ernst & Young's Risk Management and Regulatory Practice, assisting financial services and energy trading clients with risk management infrastructure. Mr. Stein holds a bachelor's degree in engineering from Rensselaer Polytechnic Institute and an M.B.A. from Columbia Business School.

Michael J. Chadwick, Chief Financial Officer

Michael J. Chadwick was appointed Chief Financial Officer of Hess Midstream, succeeding Jonathan Stein, effective July 18, 2025. Mr. Chadwick joined Hess in 2000 and has held increasingly senior financial roles within the company. Most recently, he served as Vice President and Controller since 2022.

Michael S. Bast, President and Chief Operating Officer

Michael S. Bast was appointed President and Chief Operating Officer of Hess Midstream GP LLC, effective September 26, 2025, succeeding John A. Gatling. Prior to this role, Mr. Bast served as Director of Upstream Operations and the Maintenance, Reliability and Integrity departments at Hess Corporation since November 2022. In this position, he was responsible for overseeing oil and gas production, maintenance, and engineering activities in the Bakken region. From November 2019 to November 2022, he was the Director of Midstream Operations at Hess, where he oversaw gathering, processing, export, and disposal activities for oil, gas, and water. Mr. Bast joined Hess in 2007 and previously worked at Chevron from 1998 to 2006.

Gabriela B. Boersner, General Counsel and Secretary

Gabriela B. Boersner serves as the General Counsel and Secretary for Hess Midstream. She has been a corporate attorney at Hess since 2007, serving as Managing Counsel, Securities & Finance, and Assistant Secretary. She was instrumental in the formation of Hess Midstream and its initial public offering.

Michael Frailey, Vice President, Chief Commercial Officer

Michael Frailey holds the position of Vice President, Chief Commercial Officer at Hess Midstream. He previously served as Vice President, Commercial for Hess Corporation and was involved in the commercial development of the Hess Midstream joint venture since 2013, including the formation of Hess Midstream Partners LP and its initial public offering in 2014.

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The key risks to Hess Midstream (HESM) primarily stem from its significant dependence on its primary customer and geographic operating region, alongside corporate governance dynamics. Here are up to three key risks:

1. Customer Concentration and Influence of Hess Corporation (now Chevron): Hess Midstream generates substantially all of its revenues from commercial agreements with Hess Corporation (which has been acquired by Chevron). This creates an outsized influence for the parent company, even after governance changes in 2025 that reduced Hess's stake. Hess (now Chevron) retains control over the terms of midstream services and can prioritize its own growth, potentially creating a conflict of interest with HESM's returns. This risk has manifested with Chevron's reduced drilling activity in the Bakken, directly impacting HESM's throughput volumes, leading to lower growth guidance and a projected flat EBITDA in 2026.
2. Overreliance on the Bakken Region: Hess Midstream's operations are heavily concentrated in the Bakken region. This regional dependency exposes HESM to risks associated with the production volumes and drilling activity in that specific area. Evidence suggests that Bakken production has shown signs of plateauing, with daily oil per well decreasing, which could limit future demand for HESM's services and hinder its growth potential. Changes in Chevron's capital allocation or strategy in the Bakken could materially impact HESM's volumes and EBITDA.
3. Corporate Governance and Parent Company Influence Post-GIP Exit: The exit of Global Infrastructure Partners (GIP) from the joint venture in 2025 removes an experienced private equity infrastructure entity, potentially affecting HESM's operations, production, and governance balance by concentrating influence more heavily with Hess (now Chevron). Despite public shareholders holding a majority stake after governance overhauls, the commercial agreements with Hess remain unchanged, and independent directors may lack the authority to override Hess's strategic preferences, such as distribution policies that could impact HESM's long-term reinvestment.

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Hess Midstream LP (HESM) primarily operates in the Bakken and Three Forks Shale plays within the Williston Basin area of North Dakota. The company's main products and services include crude oil gathering and terminaling, natural gas gathering and processing, and produced water gathering and disposal.

The addressable markets for Hess Midstream's main products and services in the Bakken region (North Dakota) are sized as follows:

• Crude Oil Gathering & Terminaling (Bakken, North Dakota): The Bakken region's crude oil production peaked at 1.5 million barrels per day (MMbbl/d) in November 2019. After a decline, production was around 1.3 MMbbl/d by the end of 2023. The U.S. Energy Information Administration (EIA) projected an average production of 1.2 MMbbl/d for 2025. The region currently has an overbuilt crude oil takeaway pipeline capacity.
• Natural Gas Gathering & Processing (Bakken, North Dakota): Natural gas production in the Bakken region reached an annual high of 2.97 billion cubic feet per day (Bcf/d) in 2021. Gross associated gas in the Bakken has increased to over 3.4 Bcf/d, surpassing its 2019 peak. North Dakota's natural gas processing capacity expanded to 4.0 Bcf/d in 2021 and was projected to reach 4.2 Bcf/d in 2023. However, natural gas production is rising, testing the limits of existing pipeline and processing capacity.
• Natural Gas Liquids (NGL) Takeaway (Bakken, North Dakota): The primary NGL takeaway capacity out of the Bakken, mainly via ONEOK's Elk Creek and Bakken NGL pipelines, totals a combined capacity of 440 thousand barrels per day (Mb/d). Recovered NGL volumes in the Bakken have exceeded 450 Mb/d.
• Produced Water Gathering & Disposal (Bakken, North Dakota): While Hess Midstream provides produced water gathering and disposal services, specific market size figures (e.g., in barrels per day or monetary value) for this service in the Bakken region are not readily available in the provided search results.

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Hess Midstream (symbol: HESM) is poised for future revenue growth over the next 2-3 years, driven primarily by increased throughput volumes across its systems, strategic expansion of its gas processing and gathering infrastructure, and an emphasis on growing third-party customer volumes.

1. Increased Throughput Volumes Across Oil, Gas, and Water Systems: Hess Midstream consistently identifies rising throughput volumes as a key driver for revenue and Adjusted EBITDA growth. The company anticipates an approximately 10% increase in throughput volumes across its oil and gas systems in 2025 compared to 2024. This growth is expected to continue beyond 2025, with projected approximately 10% growth in gas throughput in 2026, followed by about 5% growth in 2027, and approximately 5% growth in oil throughput for both 2026 and 2027. This expansion is supported by Hess Corporation's ongoing drilling programs in the Bakken Basin.
2. Expansion of Gas Processing and Gathering Infrastructure: A significant portion of Hess Midstream's future revenue is expected to come from its gas processing and gathering segments, projected to account for approximately 75% of total affiliate revenues in 2026 and 2027. The company is focused on expanding its gas processing capabilities, including the construction of new compressor stations and associated gathering pipelines. Although the Capa gas plant project has been suspended, the strategic intent to grow gas volumes remains, supported by expectations of rising gas-oil ratios (GORs) over time.
3. Growth in Third-Party Volumes: Beyond its primary customer, Hess Corporation, Hess Midstream actively seeks to grow its third-party customer base. Increased third-party volumes have contributed to revenue growth in recent quarters, and the company views expanding services to attract additional third-party customers as an opportunity for market presence and revenue diversification. This expansion of the customer base leverages HESM's strategic asset base and operational expertise within the midstream sector.

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Share Repurchases

• In May 2025, Hess Midstream initiated a $200 million repurchase program, which included approximately $190 million in Class B units from its sponsors and a $10 million accelerated share repurchase of Class A shares from the public.
• In August 2025, the company announced an accretive $100 million repurchase, consisting of approximately $30 million of Class B units from Chevron and $70 million of Class A shares through an accelerated share repurchase agreement.
• Hess Midstream expects to have over $1.25 billion in financial flexibility through 2027 for potential incremental share repurchases.

Share Issuance

• In February 2025, an affiliate of Global Infrastructure Partners priced an upsized public offering of 11,000,000 Class A shares at $39.45 per share, with gross proceeds of $433.95 million, none of which were received by Hess Midstream.
• In May 2025, an affiliate of Global Infrastructure Partners priced a public offering of 15,022,517 Class A shares at $37.25 per share, resulting in gross proceeds of $559.59 million, with no proceeds going to Hess Midstream.

Capital Expenditures

• In 2020, Hess Midstream reduced its expansion capital by approximately $75 million (20%) to $260 million, with full-year maintenance capital remaining at $15 million, resulting in total capital expenditures of approximately $275 million.
• For 2025, initial capital expenditure guidance was approximately $300 million, later reduced to approximately $270 million due to the suspension of the Capa gas plant project.
• For 2026 and 2027, Hess Midstream initially expected capital expenditures of $250 million to $300 million per year for ongoing investments in gas compression, greenfield high-pressure gathering lines, and a new gas processing plant, but subsequently lowered this guidance significantly following the suspension of the Capa gas plant.