Note 9. Earnings per Share

We calculate earnings per Class A Share as we do not have any other participating securities. Substantially all of income tax expense is attributed to earnings of Class A Shares reflective of our organizational structure. Class B Units of the Partnership together with the equal number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one-for-one basis. In addition, our restricted equity-based awards may have a dilutive effect on our earnings per share. Diluted earnings per Class A Share are calculated using the “treasury stock method” or “if-converted method”, whichever is more dilutive.

 

 

Year Ended December 31,

 

(in millions, except per share amounts)

 

2025

 

 

2024

 

 

2023

 

Net income

 

 

684.6

 

 

 

659.0

 

 

 

607.7

 

Less: Net income attributable to noncontrolling interest

 

 

331.7

 

 

 

435.9

 

 

 

489.1

 

Net income attributable to Hess Midstream LP

 

 

352.9

 

 

 

223.1

 

 

 

118.6

 

Net income attributable to Hess Midstream LP
   per Class A share:

 

 

 

 

 

 

 

 

 

Basic:

 

$

2.87

 

 

$

2.51

 

 

$

2.11

 

Diluted:

 

$

2.86

 

 

$

2.49

 

 

$

2.08

 

Weighted average Class A shares outstanding:

 

 

 

 

 

 

 

 

 

Basic:

 

 

123.1

 

 

 

89.0

 

 

 

56.2

 

Diluted:

 

 

123.1

 

 

 

89.0

 

 

 

56.3

 

For the year ended December 31, 2025, the weighted average number of Class A Shares outstanding included 20,979 dilutive restricted shares (2024: 31,426 shares; 2023: 40,210 shares).

In computing the dilutive effect, if any, of an exchange of Class B Units of the Partnership together with the equal number of Class B Shares of the Company to Class A Shares of the Company, net income attributable to Class A shareholders is adjusted, including for additional income tax expense, due to elimination of the noncontrolling interest associated with Class B Units of the Partnership. For the years ended December 31, 2024 and 2023, the “if-converted” method was more dilutive. A reconciliation of the numerator and the denominator of the diluted earnings per Class A Share calculation under the “if-converted” method, is presented below:

 

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

(in millions, except per share data)

 

 

 

 

 

 

Diluted net income per share

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

Net income attributable to Hess Midstream LP

 

$352.9

 

$223.1

 

$118.6

Effect of exchange of Class B Units of the Partnership and
   the equal number of Class B Shares of the Company to
   Class A Shares of the Company

 

331.7

 

435.9

 

489.1

Effect of income tax expense on additional income attributable
   to Hess Midstream LP
(1)

 

(80.9)

 

(106.3)

 

(119.3)

Diluted net income attributable to Hess Midstream LP

 

$603.7

 

$552.7

 

$488.4

Denominator:

 

 

 

 

 

 

Basic weighted average Class A Shares outstanding

 

123.1

 

89.0

 

56.2

Effect of dilutive securities:

 

 

 

 

 

 

Weighted average Class B Units/Shares

 

88.1

 

132.8

 

177.9

Restricted equity-based awards

 

-

 

-

 

0.1

Diluted weighted average shares outstanding

 

211.2

 

221.8

 

234.2

Diluted net income attributable to Hess Midstream LP
   per Class A Share

 

$2.86

 

$2.49

 

$2.08

 

(1)
Income tax effect is calculated assuming 24.39% blended U.S. federal and state income tax rate.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 27, 2023
2021Mar 1, 2022
2020Feb 23, 2021
2019Feb 21, 2020

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.