Hess Midstream Partners (HESM) AI Stock Analysis

• Market Cap: $8.71B
• Dividend Yield: 6.88%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.53
• Revenue Growth: 9.02%
• EPS Growth: 17.28%
• Country: US
• Employees: 176
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.74
• Shares Outstanding: 131,084,600
• 10 Day Avg. Volume: 2,003,182
• 30 Day Avg. Volume: 1,694,634
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 5.44
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 7.17
• 1Y Price Target: $46.20
• Price Target Upside: 11.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: $48.00 ▲(15.75% Upside)

Hess Midstream Partners scores well due to strong financial performance and positive earnings call sentiment, supported by strategic corporate actions like stock buybacks. While high leverage is a concern, the company's profitability and cash flow management, combined with attractive valuation metrics, provide a solid investment case.

Positive Factors

Dividend Yield

Analyst's recommendation for HESM is at Equal-weight, with a price target reflecting a 29.0% one-year, total-return upside including a 7.4% dividend yield.

Stock Buybacks

There is an expectation of nearly $2.5 billion in stock buybacks over the next five years, representing more than 25% of the company's market cap.

Negative Factors

Oil Prices

The main risk to the thesis is oil prices falling below $60 per barrel, which could lead to reduced drilling activity and slower growth.

Strategic Uncertainty

HESM retains its stable cash flow profile, although faces questions over strategy going forward.

Hess Midstream Partners Business Overview & Revenue Model

Company Description

Hess Midstream Partners LP (HESM) is a leading provider of integrated midstream services to the oil and gas industry, primarily focused on the Bakken shale formation in North Dakota. The company operates through three main sectors: gathering and processing, transportation, and terminaling and storage. Hess Midstream offers a range of services including the transportation of crude oil, natural gas, and produced water, as well as processing facilities that separate hydrocarbons and manage byproducts.

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 demonstrates strong profitability with high gross and net profit margins, positive revenue growth, and efficient operational performance. However, the rising debt-to-equity ratio poses a financial risk.

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	1.52B	1.50B	1.35B	1.28B	1.20B	1.09B
Gross Profit	1.14B	1.29B	1.04B	1.09B	1.04B	935.00M
EBITDA	1.15B	1.14B	1.02B	972.50M	903.40M	733.40M
Net Income	250.10M	223.10M	118.60M	620.60M	617.80M	484.80M
Balance Sheet
Total Assets	4.26B	4.15B	3.79B	3.59B	3.49B	3.37B
Cash, Cash Equivalents and Short-Term Investments	6.10M	4.30M	5.40M	3.10M	2.20M	2.60M
Total Debt	3.57B	3.47B	3.21B	2.89B	2.56B	1.91B
Total Liabilities	3.75B	3.69B	3.43B	3.06B	2.73B	2.05B
Stockholders Equity	601.30M	530.70M	340.20M	529.00M	753.10M	1.33B
Cash Flow
Free Cash Flow	660.60M	634.20M	642.90M	622.90M	632.30M	340.60M
Operating Cash Flow	957.40M	940.30M	866.40M	861.10M	795.50M	641.70M
Investing Cash Flow	-296.80M	-306.10M	-223.50M	-238.20M	-163.20M	-301.00M
Financing Cash Flow	-658.70M	-635.30M	-640.60M	-622.00M	-632.70M	-341.40M

Hess Midstream Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESM, the sentiment is Positive. The current price of 41.47 is above the 20-day moving average (MA) of 40.80, above the 50-day MA of 39.07, and above the 200-day MA of 37.42, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 30.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HESM.

Hess Midstream Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HESM	80 Outperform	$8.71B	15.39	52.91%	6.88%	9.02%	17.28%
AM	78 Outperform	$8.71B	19.35	21.65%	4.95%	7.09%	17.53%
WES	77 Outperform	$14.73B	11.89	38.42%	9.28%	7.11%	-16.14%
DTM	75 Outperform	$10.54B	27.89	8.48%	3.01%	15.28%	-9.99%
Sector *	65 Neutral	$14.84B	8.62	2.77%	5.45%	4.51%	-62.52%
KNTK	54 Neutral	$6.63B	56.56	-8.21%	7.62%	16.09%	-71.69%
SMC	47 Neutral	$377.02M	5.86	-25.85%	―	2.91%	-432.03%

Hess Midstream Partners Corporate Events

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 Announces Leadership Changes Post-Merger

On July 18, 2025, following the merger between Hess Corporation and Chevron Corporation, Hess Midstream announced significant changes to its Board of Directors and executive leadership. John B. Hess and other key executives resigned from the Board, with Chevron’s Andy Walz appointed as Chairman alongside new members Kristen Ghattas and Kristi McCarthy. Jonathan C. Stein was named CEO, succeeding John B. Hess, and Michael J. Chadwick was appointed CFO. These changes reflect Chevron’s increased influence, owning approximately 37.8% of Hess Midstream, and aim to enhance shareholder value and operational performance.

The most recent analyst rating on (HESM) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Hess Midstream Partners stock, see the HESM Stock Forecast page.

Hess Midstream Partners Announces Secondary Share Offering

On May 28, 2025, Hess Midstream LP announced the pricing of a secondary public offering of 15,022,517 Class A shares at $37.25 per share, conducted by an affiliate of Global Infrastructure Partners. The offering, managed by J.P. Morgan and Citigroup, is expected to generate gross proceeds of $559.59 million for the selling shareholder, with the company itself not receiving any proceeds. The offering is anticipated to close on May 30, 2025, and includes customary conditions and indemnifications. Additionally, governance changes were announced with the resignation of three board members, who left without disagreements with the company.

The most recent analyst rating on (HESM) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Hess Midstream Partners stock, see the HESM Stock Forecast page.

Hess Midstream Announces Major Share Offering

On May 28, 2025, Hess Midstream LP announced the commencement of a public offering of 15,022,517 Class A shares by GIP II Blue Holding, L.P., an affiliate of Global Infrastructure Partners. This offering will result in GIP no longer holding ownership interests in Hess Midstream or its affiliates, with Hess Investments North Dakota LLC gaining full control. The board will see the resignation of GIP’s designated directors, and Hess will continue to control the company’s management. The offering will not alter existing commercial agreements or the partnership agreement with Hess.

The most recent analyst rating on (HESM) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Hess Midstream Partners stock, see the HESM Stock Forecast page.