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Hess Midstream LP
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$3.8B
Market Cap
12.1
P/E
1.30
PEG
21.2%
ROCE
151.6%
ROE
8.61
D/E
62.2%
OPM
-25.2%
% from 52W High
36
α RS
🔍 HESM is showing a multi-screen setup because it matches 13 of 39 tracked screener presets, Sector RRG has Energy in the Leading quadrant with the trail still strengthening, and an ECS of 69.2 last quarter. The main caution: the Large Cap Quality preset's Backtest win rate is only 49.8%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG ECS Backtest
Sources
Conviction 13/39 · Energy in Leading quadrant · ECS 69.2 · Backtest win rate 49.8%
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🌏 Global Investor Returns
Currency-adjusted total returns for HESM including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Hess Midstream LP acquires, owns, operates, and develops midstream assets and provide fee-based services to sponsor, its subsidiaries, and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering system consists of approximately 1,430 miles of high- and low-pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 685 million cubic feet per day; crude oil gathering system comprises approximately 615 miles of crude oil gathering pipelines; and produces water gathering system that includes approximately 360 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota; and Terminaling and Export segment that owns Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, and other Dakota access pipeline connections, as well as Johnson’s Corner Header System, a crude oil pipeline header system; and other DAPL connections. Hess Midstream LP was formerly known as Hess Midstream Partners LP and changed its name to Hess Midstream LP in December 2019. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding HESM
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 355.3K $13.8M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →
📊 MIXED Midstream operator with $300M Q1 EBITDA, $910M-$960M free cash flow guidance
Revenue & Profitability
Q1 2026 net income was $158 million. Adjusted EBITDA was $300 million, down from $309 million in Q4 2025 due to severe winter weather. Total revenues decreased by approximately $15 million sequentially. Full-year 2026 guidance: net income $650-$700 million, adjusted EBITDA $1.225-$1.275 billion, and adjusted free cash flow $910-$960 million.
Outlook
Management expects volumes to grow through the rest of 2026, excluding Q2 planned maintenance at Tioga Gas Plant (reducing volumes by 5-10 MMcf/d). Chevron targets ~200,000 BOEPD plateau production in the Bakken. Third-party volumes are targeted at 10%, with potential upside. No major macro changes from the Middle East conflict were noted.
Growth Drivers
Key growth levers include continued volume growth from Chevron's development program, optimization through longer laterals and operational efficiencies, and additional third-party volumes from midstream providers utilizing system optionality. Second-half 2026 EBITDA is expected to be ~8% higher than the first half.
Balance Sheet & CapEx
Q1 2026 CapEx was $10 million, seasonally low. Full-year 2026 CapEx guidance was reduced by a third to approximately $100 million from $150 million, driven by upstream efficiencies (longer laterals by Chevron). Capital spend will be higher in Q2 and Q3 as greenfield high-pressure gathering pipeline infrastructure is completed.
Margins
Gross adjusted EBITDA margin was approximately 83% in Q1 2026, above the 75% target, highlighting strong operating leverage. Lower CapEx and the deferral of material cash taxes until after 2028 further support margin trajectory. Costs decreased by $6 million sequentially due to lower seasonal maintenance and third-party offloads.
Key Risks
Key risks include severe winter weather impacting volumes (seen in Q1 2026), planned maintenance at the Tioga Gas Plant in Q2 reducing throughput, and dependence on Chevron's Bakken production plan. MVCs provide downside protection. Any contract changes with Chevron require special independent director approval and conflict committee review.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-03
Q2 2026 saw strong operational execution, higher net income, and robust EBITDA margins above targets. Guidance for 2026 remains unchanged, with higher second-half volumes and continued focus on shareholder returns and debt reduction.
Q1 2026 Q1 2026 2026-05-04
Q1 2026 saw strong operational execution despite weather impacts, with net income of $158M and adjusted EBITDA of $300M. CapEx guidance was reduced, free cash flow guidance raised, and shareholder returns increased, supported by stable contracts and Chevron's efficiencies.
Q4 2025 Q4 2025 2026-02-02
Strong 2025 results with 9% Adjusted EBITDA growth and robust free cash flow. Capital spending to drop sharply, supporting 5% annual distribution growth and debt reduction. 2026 guidance is stable, with weather-related volume impacts mitigated by 95% MVC protection.
Q3 2025 Q3 2025 2025-11-03
Q3 2025 saw strong operational and financial results, with adjusted EBITDA up to $321 million and a $100 million share repurchase. Capital expenditures are reduced following the Capa gas plant suspension, supporting higher free cash flow and ongoing capital returns.
Q2 2025 Q2 2025 2025-07-30
Q2 2025 saw record operational and financial performance, with net income and adjusted EBITDA rising sequentially. Guidance for 2025 remains strong, supported by robust throughput growth, disciplined capital allocation, and a focus on shareholder returns.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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