EX-99.2

EX-99.2 4 hesm-ex99_2.htm EX-99.2 EX-99.2

Exhibit 99.2

Segment Information

The following tables recast the quarterly segment information for the three months ended March 31, 2024 and 2023, the three and six months ended June 30, 2023, and the three and nine months ended September 30, 2023:


	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended March 31, 2024
Revenues and other income	$	188.1	$	139.1	$	28.4	$	355.6	$	-	$	355.6
Operating and maintenance expenses (exclusive of depreciation shown separately below)		46.3		25.2		6.6		78.1		-		78.1
Depreciation expense		30.8		14.7		4.3		49.8		-		49.8
General and administrative expenses		2.1		1.2		0.2		3.5		2.2		5.7
Income from equity investments		-		2.7		-		2.7		-		2.7
Interest expense, net		-		-		-		-		48.5		48.5
Income tax expense		-		-		-		-		14.3		14.3
Adjusted EBITDA		139.7		115.4		21.6		276.7
Capital expenditures		31.7		3.4		0.1		35.2

	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended March 31, 2023
Revenues and other income	$	164.7	$	114.4	$	25.9	$	305.0	$	-	$	305.0
Operating and maintenance expenses (exclusive of depreciation shown separately below)		38.4		20.2		3.9		62.5		-		62.5
Depreciation expense		28.8		14.5		4.1		47.4		-		47.4
General and administrative expenses		2.4		1.2		0.3		3.9		2.5		6.4
Income from equity investments		-		1.6		-		1.6		-		1.6
Interest expense, net		-		-		-		-		41.6		41.6
Income tax expense		-		-		-		-		6.5		6.5
Adjusted EBITDA		123.9		94.6		21.7		240.2
Capital expenditures		49.4		0.9		7.0		57.3


	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended June 30, 2023
Revenues and other income	$	174.5	$	122.8	$	26.7	$	324.0	$	-	$	324.0
Operating and maintenance expenses (exclusive of depreciation shown separately below)		43.8		23.8		5.5		73.1		-		73.1
Depreciation expense		28.2		14.5		4.3		47.0		-		47.0
General and administrative expenses		2.5		1.1		0.2		3.8		2.0		5.8
Income from equity investments		-		1.7		-		1.7		-		1.7
Interest expense, net		-		-		-		-		43.8		43.8
Income tax expense		-		-		-		-		8.1		8.1
Adjusted EBITDA		128.2		99.6		21.0		248.8
Capital expenditures		46.4		2.7		3.0		52.1

	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Six Months Ended June 30, 2023
Revenues and other income	$	339.2	$	237.2	$	52.6	$	629.0	$	-	$	629.0
Operating and maintenance expenses (exclusive of depreciation shown separately below)		82.2		44.0		9.4		135.6		-		135.6
Depreciation expense		57.0		29.0		8.4		94.4		-		94.4
General and administrative expenses		4.9		2.3		0.5		7.7		4.5		12.2
Income from equity investments		-		3.3		-		3.3		-		3.3
Interest expense, net		-		-		-		-		85.4		85.4
Income tax expense		-		-		-		-		14.6		14.6
Adjusted EBITDA		252.1		194.2		42.7		489.0
Capital expenditures		95.8		3.6		10.0		109.4


	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Three Months Ended September 30, 2023
Revenues and other income	$	197.5	$	133.2	$	32.4	$	363.1	$	-	$	363.1
Operating and maintenance expenses (exclusive of depreciation shown separately below)		52.5		26.7		10.2		89.4		-		89.4
Depreciation expense		28.9		14.5		4.3		47.7		-		47.7
General and administrative expenses		2.5		1.2		0.3		4.0		2.0		6.0
Income from equity investments		-		2.0		-		2.0		-		2.0
Interest expense, net		-		-		-		-		45.8		45.8
Income tax expense		-		-		-		-		11.4		11.4
Adjusted EBITDA		142.5		107.3		21.9		271.7
Capital expenditures		60.3		4.2		-		64.5

	Gathering		Processing and Storage		Terminaling and Export		Total Reportable Segments		Interest and Other		Consolidated
(in millions)
For the Nine Months Ended September 30, 2023
Revenues and other income	$	536.7	$	370.4	$	85.0	$	992.1	$	-	$	992.1
Operating and maintenance expenses (exclusive of depreciation shown separately below)		134.7		70.7		19.6		225.0		-		225.0
Depreciation expense		85.9		43.5		12.7		142.1		-		142.1
General and administrative expenses		7.4		3.5		0.8		11.7		6.5		18.2
Income from equity investments		-		5.3		-		5.3		-		5.3
Interest expense, net		-		-		-		-		131.2		131.2
Income tax expense		-		-		-		-		26.0		26.0
Adjusted EBITDA		394.6		301.5		64.6		760.7
Capital expenditures		156.1		7.8		10.0		173.9

The following tables presents a reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:


(in millions)	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:
Total reportable segment Adjusted EBITDA	$	276.7	$	240.2
Less:
Depreciation expense		49.8		47.4
Unallocated general and administrative expenses		2.2		2.5
Interest expense, net		48.5		41.6
Income before income tax expense	$	176.2	$	148.7


(in millions)	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:
Total reportable segment Adjusted EBITDA	$	248.8	$	489.0
Less:
Depreciation expense		47.0		94.4
Unallocated general and administrative expenses		2.0		4.5
Interest expense, net		43.8		85.4
Income before income tax expense	$	156.0	$	304.7


(in millions)	Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
Reconciliation of reportable segment Adjusted EBITDA to income before income tax expense:
Total reportable segment Adjusted EBITDA	$	271.7	$	760.7
Less:
Depreciation expense		47.7		142.1
Unallocated general and administrative expenses		2.0		6.5
Interest expense, net		45.8		131.2
Income before income tax expense	$	176.2	$	480.9