NEW YORK, Oct 25 (Reuters) – Hess Midstream LP (HESM.N) on Wednesday reported a rise in third quarter net income versus the year earlier period, with the announcement coming just days after Chevron (CVX.N) agreed to buy Hess Corp. (HES.N)

Hess Midstream, which owns oil and gas assets primarily located in the Bakken and Three Forks Shale plays in North Dakota, reported income of $164.8 million for the July-September period, up from $159.4 million in the third quarter of 2022.

Hess Midstream expects Chevron to acquire Hess Corp’s 37.8% ownership in it, the company said in an earnings release.

In the latest of a series of blockbuster U.S. oil combinations, Chevron agreed to buy Hess for $53 billion in stock to gain a bigger U.S. oil footprint and a stake in rival Exxon Mobil’s (XOM.N) massive Guyana discoveries.

Hess Midstream’s contract structure remains in place, the company added.

As part of its annual nomination process for long-term commercial contracts, Hess Midstream plans to set its minimum volume commitment contracts and rates, which are expected to be based on Hess’s current four-rig play in the Bakken.

The company will release both in January 2024, consistent with prior practice, it said.

John Gatling, President of Hess Midstream, said in the release that the company had raised its operational and financial guidance for the second time this year. Hess Midstream continues to target at least 5% annual distribution growth through 2025, the company said.

Third quarter terminal volumes increased nearly 20% versus the previous quarter, while a gas processing volume of 386 million cubic feet per day was the company’s highest quarterly average to date, Gatling added.

Throughput volumes increased 9% from a year earlier for gas gathering and gas processing due to higher production and higher gas capture, while throughput volumes increased 4% for crude oil gathering and 17% for terminaling.

Construction has been completed at one of two new compressor stations and remains on schedule at the other, the company said, with both expected online by year-end as planned.

Gatling said the company’s fourth quarter gas, oil and water volumes are expected to be relatively stable from the third quarter, reflecting winter weather contingencies.

Revenue and other income in the third quarter was $363.1 million, compared with $334.8 million a year earlier, primarily due to higher physical volumes and tariff rates.

The company canceled an earnings call scheduled for Wednesday in light of the Chevron/Hess deal.

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