Hess Midstream Partners (HESM) AI Stock Analysis

• Market Cap: $7.11B
• Dividend Yield: 8.37%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.52
• Revenue Growth: 9.02%
• EPS Growth: 17.28%
• Country: US
• Employees: 176
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.74
• Shares Outstanding: 131,084,600
• 10 Day Avg. Volume: 1,378,435
• 30 Day Avg. Volume: 1,680,134
• PEG Ratio: 0.78
• Price to Book (P/B): 6.21
• Price to Sales (P/S): 2.21
• P/FCF Ratio: 5.20
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 5.28
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 6.93
• 1Y Price Target: $38.75
• Price Target Upside: 14.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $35.00 ▲(3.46% Upside)

Hess Midstream Partners receives a strong overall score driven by robust financial performance and positive earnings call insights, including growth projections and a credit rating upgrade. However, technical analysis indicates bearish momentum, and high leverage on the balance sheet poses a potential risk. The stock's valuation is attractive due to a low P/E ratio and high dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth and high margins indicate a robust business model and effective market positioning, supporting long-term financial health.

Cash Flow Management

Effective cash flow management ensures financial stability and supports strategic investments and shareholder returns over time.

Credit Rating Upgrade

An improved credit rating enhances financial flexibility and reduces borrowing costs, supporting long-term growth and stability.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting future investment and growth opportunities.

Decreased Rig Activity

Reduced drilling activity could lead to lower throughput volumes, affecting revenue and EBITDA growth in the medium term.

Higher Maintenance Costs

Increased maintenance costs can pressure margins and reduce profitability, affecting financial performance and cash flow.

Hess Midstream Partners Business Overview & Revenue Model

Company Description

Hess Midstream LP owns, develops, operates, and acquires midstream assets. The company operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,350 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 450 million cubic feet per day; and crude oil gathering system comprises approximately 550 miles of crude oil gathering pipelines. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; and crude oil rail cars, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.

How the Company Makes Money

Hess Midstream generates revenue through a fee-based model, which is primarily structured around long-term contracts with customers. The company earns money by charging fees for its gathering and processing services, as well as transportation and terminaling services. Key revenue streams include fixed fees for throughput volumes, which provide predictable cash flow regardless of commodity price fluctuations, and variable fees that can depend on the volume of oil and gas processed or transported. Significant partnerships with Hess Corporation, which is a major oil producer in the Bakken region, contribute to stable earnings, as they ensure a consistent demand for Hess Midstream's services. Additionally, the company benefits from investments in infrastructure that enhance operational efficiency and capacity, further supporting its revenue generation capabilities.

Hess Midstream Partners Financial Statement Overview

Summary

Hess Midstream Partners shows strong profitability with high margins and positive revenue growth. Despite a high debt-to-equity ratio, effective cash flow management and strong return on equity support a solid financial position.

Income Statement

Hess Midstream Partners demonstrates strong profitability with consistently high gross and net profit margins over the years. The company has shown a positive revenue growth trend, with a notable increase from the previous year. EBIT and EBITDA margins are robust, reflecting efficient operational performance.

Balance Sheet

The balance sheet indicates a high level of debt relative to equity, with a rising debt-to-equity ratio, which could pose a financial risk. However, the company maintains a reasonable equity ratio, showing a stable asset base. Return on equity remains strong, indicating effective use of shareholder funds.

Cash Flow

Hess Midstream Partners has shown strong cash flow management with consistent free cash flow generation. The operating cash flow to net income ratio suggests healthy cash conversion. However, the free cash flow growth has seen some fluctuations, which could be an area of concern if it persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	1.49B	1.35B	1.27B	1.20B	1.09B
Gross Profit	1.36B	1.29B	1.15B	1.09B	1.04B	934.70M
EBITDA	1.19B	1.14B	1.02B	977.80M	903.40M	743.60M
Net Income	290.90M	223.10M	118.60M	83.90M	46.40M	24.00M
Balance Sheet
Total Assets	4.42B	4.15B	3.79B	3.59B	3.49B	3.37B
Cash, Cash Equivalents and Short-Term Investments	4.50M	4.30M	5.40M	3.10M	2.20M	2.60M
Total Debt	3.71B	3.47B	3.21B	2.89B	2.56B	1.91B
Total Liabilities	3.92B	3.69B	3.43B	3.06B	2.73B	2.05B
Stockholders Equity	635.00M	530.70M	340.20M	529.00M	753.10M	1.33B
Cash Flow
Free Cash Flow	666.40M	634.20M	642.90M	622.90M	632.30M	340.60M
Operating Cash Flow	962.70M	940.30M	866.40M	861.10M	795.50M	641.70M
Investing Cash Flow	-296.30M	-306.10M	-223.50M	-238.20M	-163.20M	-301.00M
Financing Cash Flow	-761.50M	-635.30M	-640.60M	-622.00M	-632.70M	-341.40M

Hess Midstream Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESM, the sentiment is Negative. The current price of 33.83 is above the 20-day moving average (MA) of 33.37, below the 50-day MA of 37.06, and below the 200-day MA of 38.10, indicating a neutral trend. The MACD of -0.95 indicates Negative momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 89.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HESM.

Hess Midstream Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	80 Outperform	$15.64B	11.80	38.42%	9.31%	7.11%	-16.14%
AM	78 Outperform	$8.53B	18.96	21.65%	5.05%	7.09%	17.53%
HESM	73 Outperform	$7.11B	12.56	52.91%	8.37%	9.02%	17.28%
DTM	69 Neutral	$10.77B	28.49	8.48%	3.03%	15.28%	-9.99%
PAA	67 Neutral	$11.83B	18.60	8.34%	8.70%	-4.31%	-17.80%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KNTK	58 Neutral	$6.57B	56.07	―	7.73%	16.09%	-71.69%

Hess Midstream Partners Corporate Events

Hess Midstream Partners Announces Leadership Change

On September 4, 2025, John A. Gatling resigned as President and COO of Hess Midstream GP LLC, effective September 26, 2025. Michael S. Bast was appointed as his successor. Mr. Bast, who has been with Hess since 2007 and has held various roles, will also become an employee of Chevron U.S.A. Inc. on October 1, 2025. His appointment is expected to continue the company’s focus on efficient operations in the Bakken region, with no additional compensation from Hess Midstream for his role.

The most recent analyst rating on (HESM) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Hess Midstream Partners stock, see the HESM Stock Forecast page.

Hess Midstream Announces $100 Million Repurchase Agreement

On August 4, 2025, Hess Midstream LP announced a $100 million repurchase agreement, including the repurchase of $30 million in Class B units from Chevron’s subsidiary and $70 million in Class A shares from the public. This strategic move, approved by the board and its conflicts committee, is part of Hess Midstream’s financial strategy to return capital to shareholders, potentially increasing distributable cash flow per share and providing capacity for distribution growth above the annual target through 2027.

The most recent analyst rating on (HESM) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Hess Midstream Partners stock, see the HESM Stock Forecast page.

Hess Midstream Reports Strong Q2 2025 Earnings

Hess Midstream LP is a fee-based, growth-oriented midstream company that operates in the energy sector, focusing on oil, gas, and produced water handling assets primarily located in the Bakken and Three Forks Shale plays in North Dakota. In its second quarter of 2025 earnings report, Hess Midstream announced a net income of $179.7 million, an increase from the previous year’s $160.3 million. The company also reported an adjusted EBITDA of $316.0 million and adjusted free cash flow of $193.8 million. Notably, the company completed a $190.0 million repurchase of Class B units and a $10.0 million repurchase of Class A shares, contributing to an increased quarterly cash distribution of $0.7370 per Class A share.

Hess Midstream’s Earnings Call Highlights Growth and Optimism

The recent earnings call for Hess Midstream Partners LP painted a picture of robust financial health and operational success. The sentiment throughout the call was largely positive, with the company highlighting significant growth in throughput and EBITDA. Shareholder returns and financial flexibility were key achievements, although there were challenges such as increased maintenance costs and additional interest and tax expenses. Despite these hurdles, the overall sentiment was optimistic, with the highlights outweighing the lowlights.