Hess Midstream LPHESM

Hess Midstream LP Segments Disclosure

10-KFiled Feb 25, 20265 min read

Note 12. Segments

Our operations are located in the United States and are organized into three reportable segments: (i) gathering, (ii) processing and storage and (iii) terminaling and export. Our reportable segments comprise the structure used by our Chief Executive Officer and Chief Financial Officer, who, collectively, have been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. Interest and Other includes certain functional departments that do not recognize revenues. The accounting policies of the segments are identical to those described in Note 2, Summary of Significant Accounting Policies and Basis of Presentation.

Our CODM evaluates the segments’ operating performance based on Adjusted EBITDA, defined as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted for other non‑cash, non‑recurring items, if applicable. For all of the segments, the CODM uses segment Adjusted EBITDA in the annual budgeting and monthly forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for Adjusted EBITDA on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.

Gathering. Our gathering segment consists of the following assets:

•
Natural Gas Gathering and Compression. A natural gas gathering and compression system located primarily in McKenzie, Williams and Mountrail Counties, North Dakota connecting Chevron and third‑party owned or operated wells to the Tioga Gas Plant, LM4 gas processing plant, and third‑party pipeline facilities. The system also includes the Hawkeye Gas Facility.
•
Crude Oil Gathering: A crude oil gathering system located primarily in McKenzie, Williams, and Mountrail Counties, North Dakota, connecting Chevron and third‑party owned or operated wells to the Ramberg Terminal Facility and the Johnson’s Corner Header System. The system also includes the Hawkeye Oil Facility.
•
Produced Water Gathering and Disposal. A produced water gathering system and disposal facilities located primarily in Williams and Mountrail Counties, North Dakota.

Processing and Storage. Our processing and storage segment consists of the following assets:

•
Tioga Gas Plant (TGP). A natural gas processing and fractionation plant located in Tioga, North Dakota.
•
Mentor Storage Terminal. A propane storage cavern and rail and truck loading and unloading facility located in Mentor, Minnesota.
•
Equity Investment in LM4 Joint Venture. The Partnership’s 50% equity method investment in LM4 joint venture that owns a natural gas processing plant located in McKenzie County, North Dakota.

Terminaling and Export. Our terminaling and export segment consists of the following assets:

•
Ramberg Terminal Facility. A crude oil pipeline and truck receipt terminal located in Williams County, North Dakota that is capable of delivering crude oil into an interconnecting pipeline for transportation to the Tioga Rail Terminal, Dakota Access Pipeline (“DAPL”) and other third‑party pipelines and storage facilities.
•
Tioga Rail Terminal. A crude oil and NGL rail loading terminal in Tioga, North Dakota that is connected to the Tioga Gas Plant, the Ramberg Terminal Facility and our crude oil gathering system.
•
Crude Oil Rail Cars. A total of 550 crude oil rail cars, constructed to the DOT‑117 safety standards, which we operate as unit trains consisting of approximately 100 to 110 crude oil rail cars.
•
Johnson’s Corner Header System. An approximately six‑mile crude oil pipeline header system located in McKenzie County, North Dakota that receives crude oil by pipeline from Chevron and third parties and delivers crude oil to DAPL and other third‑party interstate pipeline systems.
•
Other DAPL Connections. Various connections into DAPL that receive crude oil by pipeline from the crude oil gathering system for delivery into DAPL.

The following tables reflect certain financial data for each reportable segment:

 

 

 

Gathering

 

 

Processing and Storage

 

 

Terminaling and Export

 

 

Total Reportable Segments

 

 

Interest and Other

 

 

Consolidated

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and other income

 

$

870.6

 

 

$

620.0

 

 

$

130.7

 

 

$

1,621.3

 

 

$

-

 

 

$

1,621.3

 

Operating and maintenance expenses
   (exclusive of depreciation shown
   separately below)

 

 

216.0

 

 

 

119.4

 

 

 

35.2

 

 

 

370.6

 

 

 

-

 

 

 

370.6

 

Depreciation expense

 

 

134.6

 

 

 

62.0

 

 

 

17.5

 

 

 

214.1

 

 

 

-

 

 

 

214.1

 

General and administrative expenses

 

 

11.2

 

 

 

6.9

 

 

 

1.1

 

 

 

19.2

 

 

 

9.3

 

 

 

28.5

 

Income from equity investments

 

 

-

 

 

 

15.9

 

 

 

-

 

 

 

15.9

 

 

 

-

 

 

 

15.9

 

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

225.6

 

 

 

225.6

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

113.8

 

 

 

113.8

 

Adjusted EBITDA

 

 

643.4

 

 

 

509.6

 

 

 

94.4

 

 

 

1,247.4

 

 

 

 

 

 

 

Capital expenditures

 

 

231.4

 

 

 

15.1

 

 

 

1.0

 

 

 

247.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gathering

 

 

Processing and Storage

 

 

Terminaling and Export

 

 

Total Reportable Segments

 

 

Interest and Other

 

 

Consolidated

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and other income

 

$

799.1

 

 

$

577.7

 

 

$

118.7

 

 

$

1,495.5

 

 

$

-

 

 

$

1,495.5

 

Operating and maintenance expenses
   (exclusive of depreciation shown
   separately below)

 

 

203.5

 

 

 

112.9

 

 

 

30.9

 

 

 

347.3

 

 

 

-

 

 

 

347.3

 

Depreciation expense

 

 

126.7

 

 

 

59.1

 

 

 

17.3

 

 

 

203.1

 

 

 

-

 

 

 

203.1

 

General and administrative expenses

 

 

10.3

 

 

 

5.3

 

 

 

1.0

 

 

 

16.6

 

 

 

9.5

 

 

 

26.1

 

Income from equity investments

 

 

-

 

 

 

14.0

 

 

 

-

 

 

 

14.0

 

 

 

-

 

 

 

14.0

 

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

202.2

 

 

 

202.2

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

71.8

 

 

 

71.8

 

Adjusted EBITDA

 

 

585.3

 

 

 

473.5

 

 

 

86.8

 

 

 

1,145.6

 

 

 

 

 

 

 

Capital expenditures

 

 

270.2

 

 

 

17.6

 

 

 

0.7

 

 

 

288.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gathering

 

 

Processing and Storage

 

 

Terminaling and Export

 

 

Total Reportable Segments

 

 

Interest and Other

 

 

Consolidated

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and other income

 

$

730.0

 

 

$

501.7

 

 

$

116.9

 

 

$

1,348.6

 

 

$

-

 

 

$

1,348.6

 

Operating and maintenance expenses
   (exclusive of depreciation shown
   separately below)

 

 

185.3

 

 

 

99.0

 

 

 

28.7

 

 

 

313.0

 

 

 

-

 

 

 

313.0

 

Depreciation expense

 

 

115.6

 

 

 

59.9

 

 

 

17.0

 

 

 

192.5

 

 

 

-

 

 

 

192.5

 

General and administrative expenses

 

 

10.9

 

 

 

5.3

 

 

 

1.3

 

 

 

17.5

 

 

 

8.7

 

 

 

26.2

 

Income from equity investments

 

 

-

 

 

 

7.7

 

 

 

-

 

 

 

7.7

 

 

 

-

 

 

 

7.7

 

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

179.0

 

 

 

179.0

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37.9

 

 

 

37.9

 

Adjusted EBITDA

 

 

533.8

 

 

 

405.1

 

 

 

86.9

 

 

 

1,025.8

 

 

 

 

 

 

 

Capital expenditures

 

 

224.5

 

 

 

11.2

 

 

 

10.0

 

 

 

245.7

 

 

 

 

 

 

 

 

The following table presents a reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:

 

 

 

Year Ended December 31,

 

(in millions)

 

2025

 

 

2024

 

 

2023

 

Reconciliation of reportable segment Adjusted
   EBITDA to income before income tax expense:

 

 

 

 

 

 

 

 

 

Total reportable segment Adjusted EBITDA

 

$

1,247.4

 

 

$

1,145.6

 

 

$

1,025.8

 

Less:

 

 

 

 

 

 

 

 

 

   Depreciation expense

 

 

214.1

 

 

 

203.1

 

 

 

192.5

 

   Unallocated general and administrative expenses

 

 

9.3

 

 

 

9.5

 

 

 

8.7

 

   Interest expense, net

 

 

225.6

 

 

 

202.2

 

 

 

179.0

 

Income before income tax expense

 

$

798.4

 

 

$

730.8

 

 

$

645.6

 

Total assets for reportable segments are as follows:

 

 

 

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

(in millions)

 

 

 

 

 

 

Gathering

 

$

2,413.7

 

 

$

2,299.0

 

Processing and Storage(1)

 

 

962.8

 

 

 

1,010.9

 

Terminaling and Export

 

 

230.8

 

 

 

248.1

 

Total reportable segments assets

 

 

3,607.3

 

 

 

3,558.0

 

Interest and Other

 

 

781.0

 

 

 

593.0

 

Total consolidated assets

 

$

4,388.3

 

 

$

4,151.0

 
(1)
Includes investment in equity investees of $81.5 million as of December 31, 2025 and $87.0 million as of December 31, 2024.

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 Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesEarnings Per SharePP&EDebtCommitmentsStock CompensationNew StandardsPay vs Performance