Hess Midstream Investor Relations Presentation May 2023
Leading Midstream Platform Delivering Long-Term, Competitive and Resilient Growth Leading Business Model with Strategic Infrastructure serving Hess(1) and Third Parties Strategic infrastructure assets providing oil, gas and water…
Leading Midstream Attributes Visible Long-Term Growth, Sustainable Cash Flow Visible Volume and Significant Growth in Disciplined Capital Sustainable FCF and Revenue Growth Adjusted EBITDA Program Financial Flexibility Gas Capture a…
Return of Capital to Shareholders Framework Committed to Consistent & Ongoing Return of Capital 1 Growing Base Distribution 2 Incremental Return of Capital Target at least 5% annual DPS growth through Share repurchases and / or…
Hess Midstream Leading Business Model Differentiated Financial Metrics Compared to Wide Range of Peers1 Hess Midstreams Leading 2022 Debt / 2022 Fundamentals Adjusted EBITDA 6.6x 6.8x Unique combination of: 4.0x 4.2x 4.4x 3.6x 3.7x…
Stable, Growing Cash Flow Long-Term Commercial Contracts with Hess through 2033 100% Fee-Based Contracts(1) No direct commodity price exposure with inflation escalation Fixed Fee: 85% of Revenues Cost of Service: 15% of Revenues…
Established Track Record Demonstrated Effectiveness of Long-Term Commercial Contracts Hess Bakken Operated Rig Count(1) Hess Bakken Net Production(1) (MBoe/d) HESM Adjusted EBITDA(2,3) (MM) 193 990 - 9 983 1,030 8 165 - 170 8 909…
Strategic Relationship with Strong Sponsor Significant Inventory of High Return Drilling Locations Divide Leading Acreage Position Hess Bakken Upstream Summary Burke Divide Burke 465,000-acre position Tioga Rail Terminal…
HESM Commitment to Sustainability Values drive value for the benefit of all stakeholders Fully aligned with Hess Played key role in Hess Support Hess new 5-year position on climate emissions reduction emissions reduction change…
Integrated Gas Processing and Gathering Offers Processing and Export Optionality to Hess and Third Parties 500 MMcf/d of Gas Processing Capacity 500 MMcf/d processing capacity, including 400 MMcf/d at the Tioga Gas Plant and 100…
Integrated Crude Oil Terminaling and Gathering Offers Terminaling and Export Optionality to Hess and Third Parties 385 MBbl/d of Crude Oil Terminaling Capacity 285 MBbl/d Ramberg Terminal Facility (RTF) export capacity 100 MBbl/d…
Growing Water Services Assets Offers Integrated Water Handling Services to Hess and Third Parties Rapidly Growing Business Line Extensive water gathering footprint north of the Missouri River Improved safety and environmental…
Disciplined Capital Allocation Targeted Investments to Meet Customer Demand Stable & Focused Capital Program(1) Expansion Capital Area (MM) 2023 capital focused on: Compression: Additional gas compression 100 - Completion of two…
Hess Midstreams Strengths Stable, Growing Cash Flow Generation from Leading Business Model High Quality, Integrated Portfolio With Meaningful Scale Long-Term Commercial Contracts with Hess Differentiated Cash Flow…
2023 Guidance Demonstrates Continued Free Cash Flow Generation 2023 Guidance: 990 - 1,030 MM Adjusted EBITDA and 225 MM Capex Guidance Highlights Increasing Hess production and Hess Midstream gas capture driving volume guidance…
Reconciliation to GAAP Metrics Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management utilizes certain additional non-GAAP measures to facilitate comparisons of past performance…
Reconciliation to GAAP Metrics The following table presents a reconciliation of Gross Adjusted EBITDA margin to net income, the most directly comparable GAAP financial measure. 18
Midstream Market Optionality Providing Access to Key Export Routes Tioga Rail Terminal Rail to East Coast Rail to West Coast Crude Oil Enbridge Ramberg Terminal Facility DAPL Andeavor Refinery DAPL Johnsons Corner…
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