HESM Stock Analysis: Hess Midstream | NYSE
Oil & Gas Midstream | NYSE, USA | Market Cap: 7.741m USD | 12M Return: 8.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 40.1M
EPS Trend: 99.5%
Qual. Beats: 0
Rev. Trend: 99.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 9.2 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: under 40 is mostly noise, over 50 gets interesting, and over 70 is strong.
Hess Midstream LP (NYSE: HESM) is a Houston-based midstream energy company that acquires, owns, operates, and develops midstream assets, providing fee-based services to its sponsor, subsidiaries, and third-party customers across the United States. Founded in 2014 and originally listed in 2017 under its prior partnership name, the company was renamed Hess Midstream LP in December 2019. It operates as a partnership and is classified within the GICS Oil & Gas Storage & Transportation sub-industry.
The companys operations are organized into three segments. The Gathering segment includes natural gas and natural gas liquids gathering and compression systems, crude oil gathering systems, and produced water gathering and disposal facilities, supported by hundreds of miles of high- and low-pressure pipelines. The Processing and Storage segment is anchored by the Tioga Gas Plant in North Dakota and the Mentor Storage Terminal in Minnesota, providing natural gas processing, fractionation, and propane storage. The Terminaling and Export segment owns the Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, Johnsons Corner Header System, and other Dakota Access Pipeline (DAPL) connections.
Midstream operators like HESM occupy the midstream portion of the energy value chain, sitting between upstream production and downstream refining or export markets, and typically generate revenue through long-term, fee-based contracts rather than direct exposure to commodity prices. Sponsorship by an upstream producer (Hess Corporation) provides HESM with a built-in customer base and a foundation for its gathering, processing, and terminaling services.
- Chevron acquisition of Hess strengthens sponsor drilling commitment
- Bakken shale production volumes drive gathering segment throughput
- Crude export terminal activity supports fee-based revenue growth
| Net Income: 368.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA -0.38 > 1.0 |
| NWC/Revenue: -0.95% < 20% (prev -2.37%; Δ 1.43% < -1%) |
| CFO/TA 0.24 > 3% & CFO 1.03b > Net Income 368.9m |
| Net Debt (3.77b) to EBITDA (1.25b): 3.02 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (129.2m) vs 12m ago 16.61% < -2% |
| Gross Margin: 69.45% > 18% (prev 86.51%; Δ -17.06% > 0.5%) |
| Asset Turnover: 37.96% > 50% (prev 35.61%; Δ 2.35% > 0%) |
| Interest Coverage Ratio: 4.56 > 6 (EBIT TTM 1.02b / Interest Expense TTM 224.6m) |
| DSRI: 1.03 (Receivables 156.2m/140.7m, Revenue 1.63b/1.52b) |
| GMI: 1.25 (GM 86.51% / 69.45%) |
| AQI: 1.04 (AQ_t 0.19 / AQ_t-1 0.19) |
| SGI: 1.07 (Revenue 1.63b / 1.52b) |
| TATA: -0.15 (NI 368.9m - CFO 1.03b) / TA 4.32b) |
| Beneish M = -2.72 (Cap -4..+1) = A |
As of July 02, 2026, the stock is trading at USD 37.60 with a total of 576,373 shares traded. Over the past week, the price has changed by +1.37%, over one month by -0.34%, over three months by +1.20% and over the past year by +8.10%.
Current recommended Stop Loss: 36.20 (which is 3.7% or 1.7 ATR below the current price).
Hess Midstream has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy HESM.
- StrongBuy: 2
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 36.8 | -2% |
P/E Trailing = 12.9619
P/E Forward = 14.2248
P/S = 4.7258
P/B = 9.4157
P/EG = 1.57
Revenue TTM = 1.63b USD
EBIT TTM = 1.02b USD
EBITDA TTM = 1.25b USD
Long Term Debt = 3.74b USD (from longTermDebt, last quarter)
Short Term Debt = 35.0m USD (from shortTermDebt, last quarter)
Debt = 3.77b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.77b USD (calculated: Debt 3.77b - CCE 4.60m)
Enterprise Value = 11.5b USD (7.74b + Debt 3.77b - CCE 4.60m)
Interest Coverage Ratio = 4.56 (Ebit TTM 1.02b / Interest Expense TTM 224.6m)
EV/FCF = 17.64x (Enterprise Value 11.5b / FCF TTM 652.4m)
FCF Yield = 5.67% (FCF TTM 652.4m / Enterprise Value 11.5b)
FCF Margin = 40.06% (FCF TTM 652.4m / Revenue TTM 1.63b)
Net Margin = 22.65% (Net Income TTM 368.9m / Revenue TTM 1.63b)
Gross Margin = 69.45% ((Revenue TTM 1.63b - Cost of Revenue TTM 497.6m) / Revenue TTM)
Gross Margin QoQ = 63.06% (prev 63.63%)
Tobins Q-Ratio = 2.67 (Enterprise Value 11.5b / Total Assets 4.32b)
Interest Expense / Debt = 5.95% (Interest Expense 224.6m / Debt 3.77b)
Taxrate = 14.88% (119.0m / 799.9m)
NOPAT = 872.1m (EBIT 1.02b * (1 - 14.88%))
Current Ratio = 0.92 (Total Current Assets 165.8m / Total Current Liabilities 181.2m)
Debt / Equity = 7.28 (Debt 3.77b / totalStockholderEquity, last quarter 518.0m)
Debt / EBITDA = 3.02 (Net Debt 3.77b / EBITDA 1.25b)
Debt / FCF = 5.77 (Net Debt 3.77b / FCF TTM 652.4m)
Total Stockholder Equity = 573.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.60% (Net Income 368.9m / Total Assets 4.32b)
RoE = 64.33% (Net Income TTM 368.9m / Total Stockholder Equity 573.5m)
RoCE = 23.77% (EBIT 1.02b / Capital Employed (Equity 573.5m + L.T.Debt 3.74b))
RoIC = 20.93% (NOPAT 872.1m / Invested Capital 4.17b)
WACC = 6.75% (E(7.74b)/V(11.5b) * Re(7.57%) + D(3.77b)/V(11.5b) * Rd(5.95%) * (1-Tc(0.15)))
Discount Rate = 7.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 32.67%
[DCF] Terminal Value 75.27% ; FCFF base≈655.7m ; Y1≈651.6m ; Y5≈676.0m
[DCF] Fair Price = 52.75 (EV 10.5b - Net Debt 3.77b = Equity 6.77b / Shares 128.4m; r=8.35% [WACC [floored]]; 5y FCF grow -1.24% → 2.50% )
EPS Correlation: 99.47 | EPS CAGR: 16.06% | SUE: 0.79 | # QB: 0
Revenue Correlation: 98.99 | Revenue CAGR: 9.69% | SUE: 0.10 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.68 | Chg30d=-7.12% | Revisions=-43% | Analysts=3
EPS current Year (2026-12-31): EPS=2.64 | Chg30d=-7.47% | Revisions=-14% | GrowthEPS=-7.8% | GrowthRev=-0.4%
EPS next Year (2027-12-31): EPS=2.93 | Chg30d=-0.61% | Revisions=+0% | GrowthEPS=+11.3% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: -43%