Hess Midstream LP (Hess Midstream) has reported 1Q20 net income of US$129 million compared with net income of US$80.8 million for the 1Q19, as recast for the 2019 acquisition of Hess Infrastructure Partners LP (HIP) by Hess Midstream Operations LP (formerly known as Hess Midstream Partners LP) (the Partnership), Hess Midstream’s controlled subsidiary. After deduction for noncontrolling interests, net income attributable to Hess Midstream was US$6.5 million, or US$0.37 per Class A share. Hess Midstream generated Adjusted EBITDA of US$195.3 million. DCF for the first quarter of 2020 was US$170.3 million and free cash flow was US$138.3 million.
Commenting on the 1Q20 results, John Gatling, President and Chief Operating Officer of Hess Midstream said, “We delivered strong volume growth across all of our systems in the first quarter, enabling us to exceed both our original and revised Adjusted EBITDA guidance. Going forward in 2020, we will meet any Covid-19 related challenges with increased safety measures and continued execution while delivering the visible financial growth and stability that our unique contract structure supports even in the current rapidly changing environment.”
Hess Midstream’s results contained in this release include the historical results of HIP for all periods prior to the closing of the Partnership’s acquisition of HIP, incentive distribution rights simplification and conversion from a master limited partnership into an ‘Up-C’ structure on December 16, 2019 (collectively, the Transaction), which was accounted for as a business combination of entities under common control. We refer to certain results as “attributable to Hess Midstream LP,” which exclude (i) the non-controlling interests in the Partnership retained by affiliates of Hess Corporation (“Hess”) and Global Infrastructure Partners, (ii) the noncontrolling interests in the historical operating subsidiaries of the Partnership, and (iii) historical activity of HIP prior to its acquisition by the Partnership, which is included in “net parent investment.”
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