Hess Midstream Partners Lp (HESM)
NYSE:HESM
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Hess Midstream Partners
(NYSE:HESM)
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Rating:76Outperform
Price Target:
$43.00
â–²(13.55% Upside)
Action:ReiteratedDate:05/10/26
The score is driven primarily by strong profitability and free-cash-flow generation, reinforced by a constructive earnings outlook (higher 2026 free cash flow, lower CapEx, continued returns to shareholders). Valuation is supportive via a high dividend yield with a moderate P/E. The main offset is balance-sheet risk from high leverage and limited equity cushion, while technicals are positive but not strongly momentum-driven.
Positive Factors
Consistent strong free cash flow
Sustained, multi-year free cash flow generation provides durable capacity to fund distributions, buybacks and debt reduction without relying on external capital. This cash conversion resilience supports shareholder returns and strategic optionality through commodity cycles.
Negative Factors
High leverage and thin equity
A heavy debt load and a small, declining equity base reduce balance-sheet flexibility and increase vulnerability to prolonged volume or price shocks. High leverage constrains investment options and forces prioritization of debt paydown versus growth in adverse scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent strong free cash flow
Sustained, multi-year free cash flow generation provides durable capacity to fund distributions, buybacks and debt reduction without relying on external capital. This cash conversion resilience supports shareholder returns and strategic optionality through commodity cycles.
Read all positive factors
Hess Midstream Partners (HESM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.87B
Dividend Yield8.45%
Average Volume (3M)1.48M
Price to Earnings (P/E)14.3
Beta (1Y)0.39
Revenue Growth7.06%
EPS Growth13.61%
CountryUS
Employees176
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.89
Shares Outstanding128,350,880
10 Day Avg. Volume1,961,903
30 Day Avg. Volume1,480,244
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)7.47
Price to Sales (P/S)2.62
P/FCF Ratio5.83
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue7.17
Enterprise Value/Gross Profit10.33
Enterprise Value/Ebitda9.40
Forecast
1Y Price Target
$37.05Price Target Upside-2.17% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.98
Revenue Forecast (FY)$1.61B
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...
How the Company Makes Money
Hess Midstream Partners makes money primarily by charging contractual, fee-based midstream tariffs to customers for moving, handling, and treating hydrocarbons and produced water across its asset network. Key revenue streams include: (1) Gathering...
Hess Midstream Partners Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook driven by materially higher adjusted free cash flow guidance (+20% at midpoint), disciplined capital allocation (CapEx reduced by ~1/3), a $60 million accretive buyback, maintained high margins (~83%), and contractual protections that provide revenue visibility. Countervailing near-term headwinds include severe winter-weather-driven softness in Q1 revenues and EBITDA, planned Q2 maintenance (5–10 MMcf/d impact) and some quarter-to-quarter variability in terminaling revenues. Management expects continued shareholder returns, debt reduction, and stable operations, with full-year EBITDA roughly flat versus prior year but strong free cash flow enabling returns and deleveraging.Positive Updates
Raised 2026 Adjusted Free Cash Flow Guidance
Increased full-year 2026 adjusted free cash flow guidance to $910 million–$960 million, representing a ~20% year-over-year increase at the midpoint.
Negative Updates
Q1 Revenue and EBITDA Declines from Weather
Total revenues decreased by approximately $15 million in Q1 primarily due to severe winter weather in January and February; adjusted EBITDA fell to $300 million from $309 million in Q4 2025 (a ~$9 million, ~2.9% decline).
Read all updates
Q1-2026 Updates
Positive
Negative
Raised 2026 Adjusted Free Cash Flow Guidance
Increased full-year 2026 adjusted free cash flow guidance to $910 million–$960 million, representing a ~20% year-over-year increase at the midpoint.
Read all positive updates
Company Guidance
The company reiterated 2026 guidance and provided detailed metrics: Q1 results included net income $158M, adjusted EBITDA $300M, adjusted free cash flow $237M, gross adjusted EBITDA margin ~83%, throughput averages of 430 MMcf/d gas processing, 119,000 bbl/d crude terminaling and 115,000 bbl/d water gathering, Q1 CapEx $10M and a $60M share/unit repurchase in March; for Q2 it expects net income $150M–$160M and adjusted EBITDA ~$295M–$305M (including Tioga maintenance that will reduce volumes 5–10 MMcf/d), and for full-year 2026 it targets net income $650M–$700M, adjusted EBITDA $1.225B–$1.275B (roughly flat vs. 2025 at the midpoint), adjusted free cash flow $910M–$960M (≈20% YoY increase at the midpoint) with excess adjusted free cash flow of ~ $280M after fully funding a targeted 5% distribution increase, 2026 CapEx reduced by about one-third to roughly $100M–$105M, no material cash taxes expected in 2026 (previously expected $15M now not expected) and a drawn revolver balance of $343M with net interest ~ $53M; management reiterated a balanced capital allocation strategy of 5% distribution growth plus incremental buybacks and debt paydown, current leverage ~3.0x with a not-to-go-below implied range near ~2.5x by 2028 and an ambition of about $1B of free cash flow after distributions through 2028.Hess Midstream Partners Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
48
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.63B | 1.62B | 1.49B | 1.35B | 1.27B | 1.20B |
| Gross Profit | 1.13B | 1.04B | 1.29B | 1.15B | 1.09B | 1.04B |
| EBITDA | 1.24B | 1.24B | 1.14B | 1.02B | 977.80M | 903.40M |
| Net Income | 368.90M | 352.90M | 223.10M | 118.60M | 83.90M | 46.40M |
Balance Sheet | ||||||
| Total Assets | 4.32B | 4.39B | 4.15B | 3.79B | 3.59B | 3.49B |
| Cash, Cash Equivalents and Short-Term Investments | 4.60M | 1.90M | 4.30M | 5.40M | 3.10M | 2.20M |
| Total Debt | 3.77B | 3.77B | 3.47B | 3.21B | 2.89B | 2.56B |
| Total Liabilities | 3.94B | 3.95B | 3.69B | 3.43B | 3.06B | 2.73B |
| Stockholders Equity | 374.80M | 568.30M | 530.70M | 340.20M | 245.10M | 204.10M |
Cash Flow | ||||||
| Free Cash Flow | 652.40M | 728.20M | 634.20M | 642.90M | 622.90M | 632.30M |
| Operating Cash Flow | 1.03B | 983.80M | 940.30M | 866.40M | 861.10M | 795.50M |
| Investing Cash Flow | -238.90M | -255.60M | -306.10M | -223.50M | -238.20M | -163.20M |
| Financing Cash Flow | -797.30M | -730.60M | -635.30M | -640.60M | -622.00M | -632.70M |
Hess Midstream Partners Technical Analysis
Neutral
37.87
Price Trends
38.46
Negative
36.05
Positive
35.85
Positive
Market Momentum
-0.20
Positive
42.87
Neutral
18.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESM, the sentiment is Neutral. The current price of 37.87 is below the 20-day moving average (MA) of 39.01, below the 50-day MA of 38.46, and above the 200-day MA of 35.85, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 18.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HESM.
Hess Midstream Partners Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $17.13B | 12.00 | 34.85% | 9.13% | 11.43% | -8.64% | |
80 Outperform | $14.57B | 26.36 | 9.82% | 2.70% | 22.22% | 23.30% | |
76 Outperform | $7.87B | 14.33 | 62.08% | 8.45% | 7.06% | 13.61% | |
73 Outperform | $15.32B | 15.46 | 14.66% | 8.54% | -9.94% | 43.70% | |
73 Outperform | $9.94B | 22.84 | 20.38% | 4.98% | 8.14% | -0.91% | |
73 Outperform | $7.72B | -155.64 | -11.48% | 8.77% | -1.05% | 160.44% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
HESM
Hess Midstream Partners
39.19
3.95
11.20%
PAA
Plains All American
21.99
6.22
39.47%
WES
Western Midstream Partners
43.95
9.02
25.83%
AM
Antero Midstream
21.31
3.97
22.92%
KNTK
Kinetik
48.04
7.83
19.48%
DTM
DT Midstream
145.30
47.96
49.27%
Hess Midstream Partners Corporate Events
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Hess Midstream Announces Unit Repurchase and Share Buyback
Positive
Mar 4, 2026
On March 2, 2026, Hess Midstream LP and its operating subsidiary agreed to repurchase 455,811 Class B units from Chevron affiliate Hess Investments North Dakota LLC for about $18 million, at a price aligned with the March 2 Class A share close, wi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.