Hess Midstream LP owns, develops, operates and acquires midstream assets. The company is headquartered in Houston, Texas.
| Revenue (TTM) | $1.61B |
| Gross Profit (TTM) | $1.25B |
| EBITDA | $1.23B |
| Operating Margin | 63.50% |
| Return on Equity | 150.70% |
| Return on Assets | 14.40% |
| Revenue/Share (TTM) | $12.48 |
| Book Value | $4.01 |
| Price-to-Book | 9.94 |
| Price-to-Sales (TTM) | 5.10 |
| EV/Revenue | 5.46 |
| EV/EBITDA | 7.07 |
| Quarterly Earnings Growth (YoY) | 1.40% |
| Quarterly Revenue Growth (YoY) | -3.70% |
| Shares Outstanding | $128.35M |
| Float | $127.59M |
| % Insiders | 0.86% |
| % Institutions | 89.73% |
Volatility is currently contracting
Hess Midstream stock remains stagnant due to uncertainty around Chevron's Bakken acreage strategy. Chevron is evaluating the profitability of the Bakken assets; until a clear, positive outcome emerges, HESM's long-term value remains uncertain. Second quarter results showed slightly lower EBITDA and net income, but free cash flow improved due to reduced capital expenditures.
Hess Midstream (HESM) remains a compelling Buy, offering a 7.93% forward yield and the sector's cheapest EV/EBITDA multiple. Q2 2026 saw earnings and free cash flow growth, margin expansion to 85%, and another distribution increase, reaffirming robust income stability. Management reaffirmed full-year guidance, targets 5% annual distribution growth through 2028, and is on track to reduce leverage to 2.5x by 2028.
Brian, a caller from Pennsylvania, phoned in to Mad Money on August 13, 2026 with a stock his son had been researching.
Income investors have plenty of high-yield options, but very few pass the coverage test.
Hess Midstream Partners NYSE: HESM reported higher second-quarter net income and adjusted EBITDA, supported by lower operating expenses and general and administrative savings, while reaffirming its full-year financial outlook and plans for shareholder returns and debt reduction.
Hess Midstream LP (HESM) Q2 2026 Earnings Call Transcript
The midstream energy sector continues to demonstrate its commitment to returning capital to shareholders. Major energy infrastructure companies recently announced sequential increases in payouts during Q3 2026, bolstering income generation across the space.
HOUSTON--(BUSINESS WIRE)--Hess Midstream LP Announces Distribution Per Share Level Increase.
Hess Midstream LP is transitioning from heavy infrastructure investment to maximizing cash generation and increasing shareholder returns, forming the basis for my Buy rating. HESM's fee-based business model, supported by long-term agreements and minimum volume commitments, underpins dependable cash flows and sustainable distribution growth. Management targets at least 5% annual distribution growth through 2028, alongside disciplined unit repurchases, prudent debt management, and selective acquisitions.
Hess Midstream remains a "Strong Buy," offering an 8.5% yield and at least 15% upside, despite recent underperformance and Bakken drilling headwinds. HESM's long-term contract with Chevron through 2033, with annual CPI-linked fee escalators, secures stable cash flow and mitigates near-term oil price and volume risks. Free cash flow yield stands at ~13%, supported by reduced capex, growing third-party revenues, and robust EBITDA margins of 83%.
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