Hess Midstream Forecasts 10% Annual Cash Flow Growth Until 2028

Midstream Operator Announces Long-Term Financial Strategy

Hess Midstream LP (HESM) has outlined ambitious financial targets through 2028 during its latest earnings presentation. Company executives confirmed plans to achieve 10% compound annual growth in free cash flow during this period, supported by declining capital expenditures and increased operational efficiency.

Reduced Capital Expenditures Drive Growth

The midstream specialist expects capital spending to decrease significantly starting in 2026. Financial projections indicate expenditures will fall below $100 million annually by that year, declining to approximately $50 million by 2028. This strategic reduction comes as existing infrastructure projects near completion.

Distribution Growth Continues

Investors can anticipate sustained dividend increases according to company forecasts. Hess Midstream plans to maintain at least 5% annual distribution growth through 2028, supported by its cash flow expansion plans. The company has maintained consistent distribution growth since its initial public offering.

Contract Security Provides Stability

Newly secured agreements with Hess Corporation ensure long-term operational stability. The recently amended contracts extend through 2033 with automatic 10-year renewal options, guaranteeing minimum volume commitments through 2041. These arrangements cover crucial Bakken shale operations in North Dakota.

Company leadership emphasized their confidence in achieving these targets, citing strong operational performance and favorable market conditions. The financial strategy positions Hess Midstream to deliver sustained shareholder returns while maintaining financial flexibility through the decade.