Hess Midstream Partners LP Reports Estimated Results for the Fourth Quarter of 2017

Hess Midstream Partners LP (NYSE:HESM) (“Hess Midstream”) today reported
fourth quarter 2017 net income of $77.1 million compared with net income
of $69.6 million for the fourth quarter of 2016. Net income attributable
to Hess Midstream was $14.8 million, or $0.26 per common unit. Hess
Midstream generated Adjusted EBITDA of $21.2 million and DCF of
$21.0 million for the fourth quarter of 2017.

John Gatling, Chief Operating Officer of Hess Midstream said, “We expect
significant volume growth across our business in 2018, following a
successful year of new project delivery in 2017. Since our April 2017
IPO we have progressed our infrastructure value chain while maintaining
a strong financial position, highlighted by our solid fourth quarter
earnings, distribution coverage of 1.2x and no leverage. We are
committed to delivering our targeted 15% annual distribution per unit
growth while investing in attractive opportunities that support our
long-term throughput momentum.”

Financial Results

Unless otherwise noted herein, all results included in this release
reflect the results of our predecessor for accounting purposes, for
periods prior to the closing of our IPO on April 10, 2017, as well as
the results of Hess Midstream Partners LP, for the period subsequent to
the closing of the IPO. We refer to certain results as “attributable to
Hess Midstream Partners LP,” which excludes the noncontrolling interests
in Hess Midstream’s assets retained by Hess Infrastructure Partners LP
(“Hess Infrastructure Partners”).

Revenues and other income in the fourth quarter of 2017 were $150.5
million compared to $151.6 million in the prior-year quarter. Although
tariff rates and throughput volumes were higher in the fourth quarter of
2017, revenues and other income declined compared to the prior-year
quarter, primarily due to changes to our commercial agreements at the
end of 2016, which required us to recognize an entire year of shortfall
fees in the fourth quarter of 2016. As a result, the fourth quarter of
2016 included recognition of $36.0 million of shortfall fees compared to
$13.1 million shortfall fees in the fourth quarter of 2017. Total costs
and expenses in the fourth quarter of 2017 were $72.9 million, down from
$82.0 million in the prior-year quarter primarily as a result of lower
maintenance and third-party rail transportation costs. Net income for
the fourth quarter of 2017 was $77.1 million and net cash provided by
operating activities was $120.9 million.

Adjusted EBITDA was $106.9 million, of which $21.2 million is
attributable to Hess Midstream. DCF of $21.0 million resulted in a 1.2x
DCF coverage ratio relative to distributions.

At the end of the fourth quarter 2017, Hess Midstream’s $300.0 million
revolving credit facility remained undrawn and available to fund organic
growth projects or acquisitions from Hess Corporation, Hess
Infrastructure Partners or third parties.

Joint Venture Transaction

On January 25, 2018, Hess Midstream announced the formation of a
strategic 50/50 joint venture with Targa Resources to build a new gas
processing plant, Little Missouri 4, with an anticipated capacity of 200
MMcf/d to be located south of the Missouri River near Watford City,
North Dakota. The construction activities are expected to be complete by
end of year 2018 providing Hess Midstream with an additional 100 MMcf/d
in firm gas processing capacity and the export optionality north and
south of the Missouri River.

Operational Highlights

Fourth quarter 2017 throughput volumes increased 17% for gas gathering,
28% for crude oil gathering, 22% for gas processing and 44% for crude
terminaling compared with the fourth quarter 2016, driven by strong
operating performance of our assets, including the Hawkeye Gas Facility,
the Tioga Gas Plant, the Johnson’s Corner Header System and additional
third-party volumes contracted with Hess Corporation and delivered to
us. In the fourth quarter of 2017, Hess Midstream successfully
commissioned the Hawkeye Oil Facility, which receives crude oil through
pipeline and truck deliveries from Hess Corporation and third parties
south of the Missouri River for transport by pipeline to the Ramberg
Terminal Facility north of the Missouri River. Furthermore, we continued
ramp up of the Johnson’s Corner Header System, which commenced
operations in the third quarter of 2017.

Capital Expenditures

Gross capital expenditures for the fourth quarter of 2017 totaled
$43.4 million, including $7.8 million of maintenance capital
expenditures and $35.6 million of expansion capital expenditures,
compared with $79.6 million, including $4.4 million of maintenance
capital expenditures and $75.2 million expansion capital expenditures in
the prior-year quarter. The variance in expansion capital expenditures
was primarily attributable to higher spend in the fourth quarter of 2016
for the Hawkeye development projects. Net capital expenditures
attributable to Hess Midstream Partners LP in the fourth quarter of 2017
totaled $8.6 million, including $1.5 million of maintenance capital
expenditures and $7.1 million expansion capital expenditures. Under the
contribution agreement we entered into with Hess Infrastructure Partners
in connection with the IPO, Hess Infrastructure Partners reimbursed the
full cost of maintenance capital expenditures incurred during the
fourth quarter of 2017.

Quarterly Cash Distributions

On January 23, 2018, the general partner’s board of directors declared a
cash distribution of $0.3218 per unit for the fourth quarter of 2017, an
increase of 3.6% over the distribution for the third quarter of 2017.
The distribution is expected to be paid on February 13, 2018 to
unitholders of record as of the close of business on February 2, 2018.

Hess Midstream is targeting long-term 15% annual distribution growth per
unit with at least a 1.1x distribution coverage ratio.

Investor Webcast

Hess Midstream will review fourth quarter financial and operating
results and other matters on a webcast today at 4:30 p.m. Eastern
Standard Time. The live audio webcast is accessible on the Investor page
of our website www.hessmidstream.com.
Conference call numbers for participation are 866-395-9624, or
213-660-0871 for international callers. The passcode number is 4889458.
A replay of the conference call will be available at the same location
following the event.

About Hess Midstream

Hess Midstream Partners LP is a fee-based, growth oriented traditional
master limited partnership that was formed to own, operate, develop and
acquire a diverse set of midstream assets to provide services to Hess
Corporation and third-party customers. Hess Midstream’s assets are
primarily located in the Bakken and Three Forks Shale plays in the
Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.

Reconciliation of U.S. GAAP to Non-GAAP Measures

In addition to our financial information presented in accordance with
U.S. generally accepted accounting principles (GAAP), management
utilizes additional non-GAAP measures to facilitate comparisons of past
performance and future periods. Hess Midstream has used two non-GAAP
financial measures in this earnings release. “Adjusted EBITDA” presented
in this release is defined as reported net income (loss) plus interest
expense, income tax expense and depreciation and amortization, as
further adjusted to eliminate the impact of certain items that we do not
consider indicative of our ongoing operating performance, such as other
income and other non-cash, non-recurring items, if applicable. We define
Adjusted EBITDA attributable to Hess Midstream Partners LP as Adjusted
EBITDA less Adjusted EBITDA attributable to Hess Infrastructure
Partners’ retained interests in our join interest assets. “Distributable
Cash Flow” (“DCF”) is defined as Adjusted EBITDA attributable to Hess
Midstream Partners LP less cash paid for interest and maintenance
capital expenditures. Distributable cash flow does not reflect changes
in working capital balances. We believe that investors’ understanding of
our performance is enhanced by disclosing these measures as they may
assist in assessing our operating performance as compared to other
publicly traded partnerships in the midstream energy industry, without
regard to historical cost basis or, in the case of Adjusted EBITDA,
financing methods, and assessing the ability of our assets to generate
sufficient cash flow to make distributions to our unitholders. These
measures are not, and should not be viewed as, a substitute for U.S.
GAAP net income or cash flow from operating activities and should not be
considered in isolation. Reconciliations of both reported net income
attributable to Hess Midstream Partners LP (GAAP) to Adjusted EBITDA and
net cash provided by operating activities (GAAP) to Distributable Cash
Flow, are provided below.

Forward-looking Statements

This press release may include forward-looking statements within the
meaning of the federal securities laws. Generally, the words
“anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,”
“may,” “should,” “believe,” “intend,” “project,” “plan,” “predict,”
“will” and similar expressions identify forward-looking statements,
which generally are not historical in nature. Forward-looking statements
are subject to certain risks and uncertainties that could cause actual
results to differ materially from historical results and current
projections or expectations. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements in Hess Midstream’s prospectus dated April 4, 2017
and other SEC filings, including the risk that the Little Missouri 4 gas
processing plant is not constructed on time, at the anticipated total
construction cost, or at all; that the total processing capacity of the
plant differs from expected capacity; and that additional Hess
Corporation or third-party volumes may not be realized. Hess Midstream
undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances occurring
after this press release. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date of
this press release.

Factors Affecting Comparability

The following tables present revenues, expenses and net income (loss),
for the three and twelve month periods ended December 31, 2017 and 2016.
The unaudited combined financial results of Hess Midstream Partners LP
Predecessor, our predecessor for accounting purposes, are presented for
periods prior to the closing of our IPO on April 10, 2017. Differences
in revenues and expenses for periods prior to and after the IPO are
detailed in the "Factors Affecting the Comparability of Our Financial
Results" in the Management’s Discussion and Analysis of Financial
Condition and Results of Operations section of the prospectus dated
April 4, 2017.

¹ Adjusted EBITDA and DCF are non-GAAP measures. Definitions
and reconciliations of these non-GAAP measures to GAAP reporting
measures appear in the following pages of this release.

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