HESM

Hess Midstream LP

Fundamental data last updated:September 12, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Energy

industry

Oil & Gas Midstream

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,350 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 450 million cubic feet per day; and crude oil gathering system comprises approximately 550 miles of crude oil gathering pipelines. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; and crude oil rail cars, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.

 


Analyze HESM on TradingView

VALUATION

P/E

13.13

Market Cap ($M USD)

$7.75B

Forward P/E

13.39

PEG

-6.92

PRICE TO SALES

4.76

PRICE TO BOOK

9.35

EV / EBITDA

9.27

5-Year Average P/E

Free Cash Flow Yield

8.42%

DCF Value

$53.10

Graham Number

$16.05

Price to FCF

11.88

EV to FCF

17.65

Earnings Yield

7.61%

FCF Yield

8.42%

DIVIDEND

Yield

8.09%

Annual Payout

$3.04

Payout Ratio

101.95%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.86

Next Year EPS Growth Estimate

$2.80

Next Year Revenue Growth Estimate

$2.40B

Return on Equity (ROE)

64.33%

FREE CASH FLOW

Operating Margin

61.94%

Debt-to-Equity

6.64

Piotroski F-Score

6

Altman Z-Score

2.36

Return on Invested Capital (ROIC)

24.39%

Current Ratio

0.92

Quick Ratio

0.92

Net Debt to EBITDA

3.03

Interest Coverage

4.49

Gross Profit margin

69.45%

FCF PER SHARE

$5.05

REVENUE PER SHARE

$12.61

Analyze HESM on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to be undervaluing Hess Midstream LP, with its snapshot price trading below its DCF value. The Forward P/E of 13.63 suggests a reasonable valuation, yet the negative PEG Forward ratio indicates potential growth concerns. Despite this, the company’s Altman Z-score of 2.36 implies moderate financial health, while an impressive Earnings Yield of 7.48% highlights its profitability. Overall, the stock’s valuation metrics suggest a potential mispricing relative to its intrinsic value.

AI Exposure / Tech Reliance

In the oil and gas midstream sector, Hess Midstream LP is less directly impacted by AI and tech shifts compared to tech-heavy industries. However, advancements in AI for operational efficiency and predictive maintenance could enhance its logistics and distribution capabilities. The company’s resilience will depend on its ability to integrate such technologies to optimize its supply chain.

The Bull Case

For value and GARP investors, Hess Midstream LP presents a compelling case with a robust ROIC of 24.39%, indicating efficient capital use. The FCF Yield of 8.24% underscores its ability to generate cash, while a Piotroski F-Score of 6 suggests decent financial health. With an operating margin of 61.94%, the company demonstrates strong pricing power, making it an attractive investment for those seeking stable returns.

The Bear Case

Despite its strengths, Hess Midstream LP faces structural risks with a high Debt/Equity ratio of 6.64, raising concerns about leverage. The Price/Book ratio of 13.16 and Price/Sales of 4.86 suggest the stock is expensive relative to its book and sales values. Additionally, the stock's proximity to its 52-week high could indicate technical overextension, posing a risk for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$35.00

Institutional Ownership %

1-Year Beta

0.52

Insider Buying % (6 Mo)

Distance to 52-Week High

17.71%

Distance to 52-Week Low

15.65%

EARNINGS SURPRISE %

4.62%

50-DAY SMA

$38.86

200-DAY SMA

$36.68

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.