Hess Midstream LP (NYSE:HESM) Q4 2023 Earnings Call Transcript

So from our perspective, we’re continuing to set ourselves up. We talked about the gas growth of 35%, approximately 35% between now and 2026, 10% annualized growth. And then as Jonathan mentioned, our MVCs are showing 495 million cubic foot a day on an implied production basis. Our capacity is 500, adding the 125 million a day of additional processing capacity kind of gives you an indication of the longer term outlook from a gas growth perspective. So again, we see robust production coming from the wells. We do see gas outpacing oil a little bit. And that’s driving a lot of the infrastructure that we’re talking about.

John McKay: Thanks for that. And maybe just thinking about that processing plant and kind of cadence of decisions from here, you will, will you have your 2027 MVCs kind of lockdown signed up before you need to make the call on starting to invest in that plant?

John Gatling: Yes. So essentially this year is primarily engineering and 2025 will be when we start long lead purchases and some early construction activity. So as we go through our normal annual process, we’d be setting new MVCs through this upcoming plan cycle that’ll get locked down going into early next year. So I think the timing of this will set us up where that kind of three year rolling MVC will give us a chance to lock that in from a growth perspective.

Operator: Thank you. And thank you, ladies and gentlemen, for your participation in today’s conference. This concludes the question and answer session as well as today’s program. Everyone have a great day.