Hess Midstream LP
- Open
- 40.12
- Day high
- 40.39
- Day low
- 39.99
- Prev close
- 40.03
- Volume
- 683K
- Mkt cap
- $5.2B
- P/E (TTM)
- 13.9
- EPS (TTM)
- $2.90
- P/B
- 10.0
- P/S
- 3.2
- Yield
- 7.67%
- Per share
- $3.09
Hess Midstream LP (HESM) is a Energy company listed on NYSE. The stock is down 2% over the past year. Drillr has 1 published research article covering HESM.
Hess Midstream LP (HESM) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HESM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 3, 2026 | $0.67 | $0.75 | +11.6% | $399M | +0.8% |
| May 4, 2026 | $0.65 | $0.68 | +4.6% | $390M | +0.2% |
| Feb 2, 2026 | $0.72 | $0.72 | -0.4% | $404M | -3.6% |
| Jul 30, 2025 | $0.56 | $0.74 | +31.7% | $414M | -3.3% |
| Apr 30, 2025 | $0.62 | $0.65 | +5.2% | $381M | -0.2% |
| Jan 29, 2025 | $0.65 | $0.68 | +4.6% | $395M | -1.1% |
| Oct 30, 2024 | $0.66 | $0.63 | -4.5% | $379M | +0.3% |
| Jul 31, 2024 | $0.63 | $0.59 | -6.3% | $366M | +0.1% |
| Apr 25, 2024 | $0.63 | $0.59 | -6.3% | $356M | +0.4% |
| Jan 31, 2024 | $0.63 | $0.55 | -12.7% | $357M | -0.7% |
| Oct 25, 2023 | $0.55 | $0.57 | +3.6% | $361M | +5.5% |
| Jul 26, 2023 | $0.48 | $0.50 | +4.2% | $324M | +0.5% |
HESM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 10, 2026 | Stein Jonathan C.officer: Chief Executive Officer | Tax | 1,048 | $38.92 |
| Mar 10, 2026 | Bast Michael Scottofficer: President and COO | Option | 929 | — |
| Mar 10, 2026 | REDDY J PATRICKdirector | Option | 1,612 | — |
| Mar 10, 2026 | REDDY J PATRICKdirector | Grant | 1,656 | — |
| Mar 10, 2026 | Letwin Stephen J Jdirector | Option | 1,612 | — |
| Mar 10, 2026 | Letwin Stephen J Jdirector | Grant | 1,656 | — |
| Mar 10, 2026 | Bast Michael Scottofficer: President and COO | Option | 1,327 | — |
| Mar 10, 2026 | Bast Michael Scottofficer: President and COO | Tax | 344 | $38.92 |
| Mar 10, 2026 | Bast Michael Scottofficer: President and COO | Option | 1,189 | — |
| Mar 10, 2026 | Bast Michael Scottofficer: President and COO | Tax | 308 | $38.92 |
| Mar 10, 2026 | NIEMIEC DAVID Wdirector | Grant | 1,656 | — |
| Mar 10, 2026 | NIEMIEC DAVID Wdirector | Option | 1,612 | — |
| Mar 10, 2026 | Bast Michael Scottofficer: President and COO | Tax | 241 | $38.92 |
| Mar 10, 2026 | Stein Jonathan C.officer: Chief Executive Officer | Option | 2,066 | — |
| Sep 26, 2025 | Gatling John A.officer: President and COO | Option | 2,948 | — |
Source: HESM SEC Form 4 filings, latest Mar 10, 2026. For informational purposes only — not investment advice.
See the full HESM insider & 13F page →Hess Midstream LP company profile
Overview
Hess Midstream LP (NYSE:HESM) is a master limited partnership that owns and operates critical energy infrastructure in North Dakota's Bakken oil and gas field. Founded in 2014 and taken public in 2017, the company serves as the primary midstream service provider for Hess Corporation's Bakken operations while also handling third-party volumes. The partnership operates through three main business segments that collectively provide the essential infrastructure needed to gather, process, store, and transport oil, natural gas, and produced water from wellheads to end markets.
Business
Hess Midstream operates in the oil and gas midstream sector, which serves as the critical link between upstream production (drilling and extraction) and downstream refining and marketing. The midstream industry provides the infrastructure and services needed to move hydrocarbons from wellheads to processing facilities and ultimately to end markets. The company operates three distinct business segments that work together to provide comprehensive midstream services: 1. Gathering segment (~40-45% of revenue): This segment owns and operates approximately 1,350 miles of natural gas gathering pipelines with capacity of 450 million cubic feet per day, plus 550 miles of crude oil gathering pipelines. The gathering system also includes compression facilities that maintain pressure to move gas through the pipeline network, and produced water gathering and disposal facilities that handle the saltwater byproduct of oil and gas extraction. 2. Processing and Storage segment (~35-40% of revenue): The centerpiece is the Tioga Gas Plant, a natural gas processing facility that separates raw natural gas into pipeline-quality natural gas and valuable natural gas liquids like propane and butane. The company also owns a 50% interest in the Little Missouri 4 gas processing plant and operates the Mentor Storage Terminal in Minnesota, which provides propane storage and rail/truck loading capabilities. 3. Terminaling and Export segment (~15-20% of revenue): This segment includes the Ramberg terminal facility and Tioga rail terminal, which provide crude oil storage and loading services for rail transportation. The company also owns crude oil rail cars and the Johnson's Corner Header System, a pipeline system that aggregates crude oil from multiple sources. These integrated systems work together to capture oil, gas, and water at the wellhead, process the gas to extract valuable liquids, and transport both crude oil and processed products to markets via pipeline, rail, and truck.
Revenue model
Hess Midstream generates revenue primarily through fee-based contracts rather than commodity sales, providing stable cash flows regardless of oil and gas price fluctuations. The company operates under long-term agreements with its primary customer, Hess Corporation, including Minimum Volume Commitments (MVCs) that guarantee certain throughput levels through 2027. The revenue model consists of several components: 1. Gathering fees: The company charges fees based on the volume of oil, gas, and water transported through its pipeline networks, typically measured in dollars per barrel for oil and water, and dollars per thousand cubic feet for gas. 2. Processing fees: Revenue from processing raw natural gas into pipeline-quality gas and extracting natural gas liquids, with fees based on throughput volumes and processing complexity. 3. Storage and terminaling fees: Charges for storing crude oil and loading it onto rail cars or trucks for transportation to refineries and other end markets. The company's margins are influenced by several key factors. Positive margin drivers include higher throughput volumes from increased drilling activity in the Bakken, operational efficiency improvements that reduce unit costs, and the ability to capture third-party volumes beyond Hess's production. The fee-based structure provides protection against commodity price volatility, while long-term contracts with MVCs offer revenue visibility. Margin pressures can arise from weather-related disruptions that temporarily shut down operations, increased maintenance and compliance costs, competition for third-party volumes from other midstream operators, and the need for ongoing capital investments to maintain and expand infrastructure capacity. The company's high fixed cost structure means that volume fluctuations can significantly impact profitability, making consistent throughput levels critical to maintaining strong margins.
Competitive moat
Hess Midstream possesses a moderate to strong competitive moat built primarily on its strategic positioning and infrastructure advantages in the Bakken basin. The company's moat stems from several key factors: The most significant competitive advantage is the company's exclusive relationship with Hess Corporation, which provides approximately 90% of throughput volumes through long-term contracts with Minimum Volume Commitments extending through 2027. This relationship creates high switching costs and provides predictable cash flows, as Hess would face significant expense and operational complexity to build alternative infrastructure or switch to competitors. Geographic positioning and infrastructure density provide additional protection. The company's extensive network of 1,900+ miles of pipelines, processing facilities, and storage terminals creates a comprehensive system that would be expensive and time-consuming for competitors to replicate. The integrated nature of the operations - from wellhead gathering through processing to export terminals - creates operational efficiencies and customer stickiness. However, the moat faces several potential vulnerabilities. The concentration risk with Hess Corporation is significant, as any reduction in Hess's Bakken drilling activity or production would directly impact volumes. The pending acquisition of Hess by Chevron adds uncertainty, though management expects no changes to existing contracts. Competitive threats include other midstream operators seeking to capture third-party volumes, potential bypass pipelines that could reduce the company's strategic positioning, and the long-term risk of Bakken production decline as the field matures. Additionally, the capital-intensive nature of the business means that well-funded competitors could potentially build competing infrastructure, though the economics would be challenging given existing capacity. The regulatory environment and environmental concerns around oil and gas infrastructure also pose long-term risks to the moat's sustainability.
Risks & safety
Hess Midstream demonstrates a moderate margin of safety with strong cash generation but some balance sheet concerns: **Liquidity and Solvency:** - Cash position is minimal at $6.1 million (Q1 2025), but strong operating cash flow of $202.4 million quarterly provides adequate liquidity - Current ratio of 0.81 indicates potential short-term liquidity pressure, though this is common for MLPs with predictable cash flows - No traditional debt-to-equity metrics available due to MLP structure, but leverage is approximately 3.1x adjusted EBITDA - Strong free cash flow generation of $156.9 million in Q1 2025 supports financial flexibility **Valuation Metrics:** - P/E ratio of 16.3x appears reasonable for a stable infrastructure business - EV/EBITDA of 7.1x is moderate for the midstream sector - The company has returned $1.95 billion to shareholders through buybacks since 2021, indicating strong cash generation capacity **Other Considerations:** - Fee-based revenue model with long-term contracts provides cash flow stability - Minimum Volume Commitments through 2027 offer revenue visibility - High fixed cost structure creates operational leverage but also volume sensitivity risk - Concentration risk with Hess Corporation as primary customer (90% of volumes)
Recent development
Over the past few years, Hess Midstream has executed a focused strategy centered on organic growth, capital returns, and operational optimization in the Bakken basin. The company has pursued aggressive infrastructure expansion to support growing production volumes. Key projects include constructing two new compressor stations and associated gathering pipelines, with plans to begin construction of a new 125 million cubic foot per day Capa Gas Plant in 2025 for completion in 2027. This represents a significant capacity addition that will support the projected 25% growth in gas volumes through 2027. Capital allocation strategy has been heavily focused on shareholder returns. Since 2021, the company has returned $1.95 billion through unit repurchases while reducing the total unit count by nearly 25%. Simultaneously, distributions per Class A share have increased by approximately 57% since 2021, with management targeting 5% annual distribution growth through 2027. The company has strengthened its contract structure and visibility by extending Minimum Volume Commitments with Hess Corporation through 2027. These agreements provide revenue certainty and support the projected 10% volume growth trajectory through 2026, driven primarily by Hess's continued four-rig drilling program and improving well economics through longer lateral drilling. Operational improvements have focused on gas capture efficiency, achieving over 97% total gas capture with minimal routine flaring. The company is targeting zero routine flaring by 2025 as part of its environmental initiatives. The strategic approach has been to maintain focus on the Bakken basin rather than geographic diversification, with management indicating no current plans to expand outside the region. Instead, the emphasis remains on maximizing the value of existing infrastructure through volume growth and operational efficiency improvements.
HESM company profile · for informational purposes only — not investment advice.
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