2018 Guidance Highlights Include:
- Net Income of $335—$360 million
- Adjusted EBITDA1 of $460—$485 million, of which $90—$95 million is attributable to Hess Midstream Partners LP.
-
DCF1 of
Hess Midstream Partners LP of $87—$92 million. - Gas gathering volumes of 240—250 million standard cubic feet per day (MMscf/d).
- Gas processing volumes of 225—235 million standard cubic feet per day (MMscf/d).
- Crude oil gathering volumes of 75—85 thousand barrels of oil per day (Mbo/d).
- Crude terminal volumes of 85—95 thousand barrels of oil per day (Mbo/d).
-
Capital budget, including equity investments, of $330 million
gross, $66 million net to Hess Midstream Partners LP. This includes
expenditures of $165 million gross, $33 million net to
Hess Midstream Partners LP, which were previously announced in respect of a joint venture withTarga Resources Corp. to construct the Little Missouri 4 Gas Processing Plant and related pipeline infrastructure. -
Annual Minimum Volume Commitments (MVCs) under long term
contracts with
Hess Corporation increasing for 2018 and 2019, new MVCs provided for 2020. -
Hess Midstream Partners LP is targeting long-term 15% annual distribution growth per unit with at least a 1.1x distribution coverage ratio.
Full Year 2018 Guidance
Full year 2018 volumes are anticipated to grow significantly versus
2017, driven by anticipated production growth from
In 2018, gas gathering volumes are anticipated to average 240 to 250 MMscf/d and gas processing volumes are expected to average 225 to 235 MMscf/d.
Crude oil gathering volumes are anticipated to average 75 to 85 Mbo/d in 2018, and crude oil terminaling volumes are expected to average 85 to 95 Mbo/d.
2018 Capital Budget
Hess Midstream’s 2018 capital budget, including equity investments
associated with the recently announced joint venture with
Little Missouri 4 Gas Processing Plant
Approximately $165 million gross, $33 million net to
Gas Compression Expansion
Approximately $80 million gross, $16 million net to
System Build Outs for
Approximately $75 million gross, $15 million net to
Maintenance Activities
Approximately $10 million gross, $2 million net to
Twelve Months | ||||
Ending | ||||
December 31, 2018 | ||||
(Unaudited) | ||||
Financials (millions) | ||||
Net income | $ | 335 - 360 | ||
Consolidated Adjusted EBITDA | $ | 460 - 485 | ||
Adjusted EBITDA attributable to Hess Midstream Partners LP | $ | 90 - 95 | ||
DCF of Hess Midstream Partners LP | $ | 87 - 92 | ||
Expansion capital, net | $ | 64 | ||
Maintenance capital, net | $ | 2 | ||
Twelve Months | ||||||||||
Ending | ||||||||||
December 31, 2018 | ||||||||||
(Unaudited) | ||||||||||
Throughput volumes (thousands) | ||||||||||
Gas gathering - Mcf of natural gas per day | 240 - 250 | |||||||||
Crude oil gathering - bopd | 75 - 85 | |||||||||
Gas processing - Mcf of natural gas per day | 225 - 235 | |||||||||
Crude terminals - bopd | 85 - 95 | |||||||||
Minimum Volume Commitments
As part of the annual nomination process set forth in our long-term
commercial contracts, Hess Corporation’s minimum volume commitments
(MVCs) were reviewed and updated, based upon the nomination of
Hess Corporation's Minimum Volume Commitment | ||||||
2018 | 2019 | 2020 | ||||
Throughput volumes (thousands) | ||||||
Gas gathering - Mcf of natural gas per day | 255 | 232 | 279 | |||
Crude oil gathering - bopd | 114 | 104 | 119 | |||
Gas processing - Mcf of natural gas per day | 220 | 214 | 263 | |||
Crude terminals - bopd | 80 | 127 | 141 | |||
About
Hess Midstream Partners LP is a fee-based, growth oriented traditional
master limited partnership that was formed to own, operate, develop and
acquire a diverse set of midstream assets to provide services to
Reconciliation of U.S. GAAP to Non-GAAP Measures
In addition to our financial information presented in accordance with
U.S. generally accepted accounting principles (GAAP), management
utilizes additional non-GAAP measures to facilitate comparisons of past
performance and future periods.
Guidance | ||||
Year Ending | ||||
December 31, 2018 | ||||
(Unaudited) | ||||
(in millions) | ||||
Reconciliation of Adjusted EBITDA attributable to Hess
Midstream Partners LP and Distributable Cash Flow attributable to Hess Midstream Partners LP to net income (loss): |
||||
Net income (loss) | $ | 335 - 360 | ||
Plus: | ||||
Depreciation expense | 123 | |||
Interest expense | 2 | |||
Adjusted EBITDA | 460 - 485 | |||
Less: Adjusted EBITDA attributable to noncontrolling interest(a) | 370 - 390 | |||
Adjusted EBITDA attributable to Hess Midstream Partners LP | 90 - 95 | |||
Less: | ||||
Cash interest paid, net | 1 | |||
Maintenance capital expenditures | 2 | |||
Distributable cash flow attributable to Hess Midstream Partners LP | $ | 87 - 92 |
(a) |
Reflects Hess Infrastructure Partners LP 80% noncontrolling economic interest in the net income of Hess North Dakota Pipeline Operations LP, Hess TGP Operations LP and Hess North Dakota Export Logistics LP. |
|
Forward-looking Statements
This press release may include forward-looking statements within the
meaning of the federal securities laws. Generally, the words
“anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,”
“may,” “should,” “believe,” “intend,” “project,” “plan,” “predict,”
“will” and similar expressions identify forward-looking statements,
which generally are not historical in nature. Forward-looking statements
are subject to certain risks and uncertainties that could cause actual
results to differ materially from historical results and current
projections or expectations. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements in Hess Midstream’s prospectus dated April 4, 2017
and other
______________________________
1Adjusted EBITDA and DCF are non-GAAP measures. Definitions and reconciliations of these non-GAAP measures to GAAP reporting measures appear in the following pages of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180131005670/en/
Source: Hess Midstream Partners LP
For Hess Midstream Partners LP
Investor:
Jennifer
Gordon, (212) 536-8244
or
Media:
Sard Verbinnen &
Co
Patrick Scanlon, (212) 687-8080