Riding off a second quarter net income of $107.9 million, Hess Midstream Partners is forecasting a 25% growth next year and disclosed it is looking for bolt-on acquisitions in the Bakken and possible purchase of existing infrastructure in the Gulf of Mexico.
“We’re looking for opportunities to strengthen our footprint through bolt-on acquisitions and kind of working through that,” said President and COO John Gatling. “So I would say there’s definitely opportunity for us to continue to grow.”
At the same time, the company is projecting net income for this year to come in between $425 million and $45 million with earnings in the range of between $690 million and $710 million, representing a 25% growth over 2019.
Third quarter crude oil storage, natural gas processing and water gathering are all projected to be down but will increase toward the end of the year as Hess and more producers bring shut in wells back on line.
“We’ve got capacity, and we’re already connected to those customers,” Gatling said. “So as they make the decisions to bring that production back online, we’re well positioned to capture and bring it into our system.”
Hess Midstream is anticipating $750 million free cash flow in 2021 and 2022.
Second quarter revenue was $269.8 million because of higher throughput volumes and tariff rates. Total costs for the second quarter were $138, up over $99.1 million for the same quarter a year ago.