HESM Q2 Beat Masks Lower Volumes as Second-Half Costs Move Higher

HESM reported Q2 2026 earnings of 75 cents per share, beating expectations and up 1.4% year-over-year, even as throughput volumes declined. The midstream operator offset weaker volumes with higher tariff rates and lower operating costs.

Management guided Q3 Adjusted EBITDA to $310–320 million, below the Q2 run rate, as deferred maintenance and capital spending accelerate in the second half. The company expects volumes to improve as Chevron wells come online, but full-year guidance remains flat versus 2025 levels.

The Q2 beat masks underlying volume pressure at a time when the sector typically benefits from production growth. HESM is betting on Chevron activity to reverse the throughput trend, but near-term margin compression from elevated maintenance capex limits upside into year-end.