Hess Midstream LP (HESM) AI Stock Analysis

Hess Midstream LP owns, develops, operates, and acquires midstream assets across three segments: Gathering, Processing and Storage, and Terminaling and Export. Its Gathering segment oversees more than 1,350 miles of natural gas and natural gas liquids pipelines capable of handling approximately 450 million cubic feet per day, alongside 550 miles of crude oil gathering pipelines and produced water disposal systems. The Processing and Storage segment operates the Tioga Gas Plant, holds a 50% stake in the Little Missouri 4 gas processing plant, and manages the Mentor Storage Terminal. The Terminaling and Export segment controls the Ramberg terminal facility, Tioga rail terminal, crude oil rail cars, and the Johnson's Corner Header System.

Between FY2021 and FY2025, revenue grew from $1.20B to $1.62B, reflecting a 5-year revenue CAGR of 8.2% from FY2020 to FY2025. Annual revenue growth reached 10.3% in FY2021, 5.8% in FY2022, 5.7% in FY2023, 10.8% in FY2024, and 8.4% in FY2025. Operating margin remained consistent, posting 60.4% in FY2021 and 62.3% in FY2025. Net income increased from $46.4M in FY2021 to $352.9M in FY2025, which raised the net margin from 3.9% to 21.8% and expanded EPS from $1.76 to $2.86. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.7% year-over-year, while quarterly earnings grew 1.4%.

As of June 30, 2026, Hess Midstream had $5.0M in cash and short-term investments against total debt of $3.68B, bringing net debt to $3.67B. Shareholders' equity was $514.6M, yielding a debt-to-equity ratio of 7.15 and a current ratio of 0.77. Operating cash flow reached $983.8M in FY2025, with free cash flow of $728.2M. Capital allocation in FY2025 included $255.6M in capital expenditures, $400.0M for share buybacks, and $350.2M in dividends paid.

At the last close of $30.66, Hess Midstream had a market cap of $6.32B and an enterprise value of $8.65B. The stock trades at a trailing P/E of 10.6x and a forward P/E of 9.9x, compared to medians of 15.0x and 12.7x for its US-listed Energy peers. Its EV/EBITDA of 7.0x is below the peer median of 8.0x, while its price-to-sales of 3.9x is above the peer median of 1.8x. Over the past year, HESM gained 1.8% versus a 16.8% return for the S&P 500 benchmark, and its 5-year return of 64.7% trailed the benchmark return of 83.0%.

Hess Midstream distributes a quarterly dividend with an annual forward payout of $3.09, resulting in a dividend yield of 10.07%. The partnership has paid dividends for 10 consecutive years, delivering a 5-year annualized dividend growth rate of 10.8%. Its payout ratio stands at 106.4%, and the most recent ex-dividend date was August 6, 2026.

Wall Street coverage shows 0 Strong Buy, 0 Buy, 4 Hold, 1 Sell, and 2 Strong Sell ratings. The mean price target of $33.67 represents a 9.8% premium over the last close of $30.66. Consensus estimates for the fiscal year ending December 31, 2026, project EPS of $3.14 on revenue of $1.61B. For the subsequent fiscal year, 4 analysts estimate EPS of $2.80 and revenue of $1.45B. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings date on November 2, 2026.

This page is an AI-written research summary of Hess Midstream LP (HESM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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