Hess Midstream Partners (HESM) stock dove on Friday following an update from the midstream assets development, operations, and acquisition company. The company provided new guidance due to an expected decrease in Bakken rig activity by Chevron (CVX). This will affect three to four drilling rigs starting in the fourth quarter of 2025.
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Here’s the new guidance provided by Hess Midstream Partners:
- Long-term growth in gas throughput volumes through at least 2027 in the Bakken.
- Oil throughput volumes are expected to plateau in 2026.
- Throughput volumes to stay above already-established minimum volume commitments.
- Flat Adjusted EBITDA in 2026, compared to 2025, and growth in 2027.
- A long-term leverage target of 3x Adjusted EBITDA.
- Significantly lower capital spending in 2026 and 2027.
- Adjusted Free Cash Flow growth through 2027.
- Lower expected third-party volumes in the fourth quarter due to adverse weather and maintenance.
- 2025 gas gathering volumes between 455 and 465 million cubic feet of natural gas per day.
- 2025 gas processing volumes between 440 and 450 MMcf of natural gas per day.
- Q3 2025 net income and Adjusted EBITDA at the lower end of its previously announced guidance range.
- 2025 net income and Adjusted EBITDA in the lower half of the company’s previously announced guidance range.
HESM stock was also hit with a downgrade today from four-star Wells Fargo analyst Praneeth Satish. He dropped the stock to a Hold rating and lowered his price target to $39 per share, suggesting a 9% upside.
Hess Midstream Partners Stock Movement Today
Hess Midstream Partners stock was down 9.37% on Friday but was still up 2.02% year-to-date. The shares have also rallied 10.99% over the past 12 months.
Is Hess Midstream Partners Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Hess Midstream Partners is Hold, based on one Buy and six Hold ratings over the past three months. With that comes an average HESM stock price target of $43.43, representing a potential 21.38% upside for the shares.
