MUFG analyst Barrett Blaschke attributes a pair of recent announcements from FERC for the broad selloff that has followed in midstream MLPs. He notes that on March 15, FERC ruled that MLPs can no longer use an income tax allowance in their rate calculation and also proposed a rate adjustment to account for the reduction in the corporate tax rate. This has led to "indiscriminate panic selling" across the space, which he sees as a buying opportunity "at what may be effectively fire-sale prices," he tells investors. Blaschke notes that Antero Midstream Partners (AM), Antero Midstream GP (AMGP), Hess Midstream Partners (HESM) and Noble Midstream (NBLX), on which he has Overweight ratings, "effectively have no assets impacted by the change." The analyst also points toward Enterprise Products (EPD), EQT Midstream Partners (EQM), MPLX (MPLX), Phillips 66 Partners (PSXP) and Valero Energy Partners (VLP) as likely to be only minimally impacted by the ruling.

Reports Q1 revenue $355.6M, consensus $351.86M. Reports adjusted EBITDA was $275.8M and adjusted free cash flow was $194.2M. Increased quarterly cash distribution to $65.16c per class A share for the first quarter of 2024, an approximate 2.7% increase compared with the fourth quarter of 2023. "We delivered a solid first quarter, underpinned by strong operational performance and continued focus on gas capture," said John Gatling, President and Chief Operating Officer of Hess Midstream. "We remain focused on safely executing our operational priorities and delivering on our growth strategy, which continues to drive sustainable cash flow generation and the potential for additional return of capital to our shareholders."