(HESM) Hess Midstream Partners - Ratings and Ratios

Hess Midstream LP, a leading midstream energy company, specializes in the ownership, operation, development, and acquisition of midstream infrastructure. The company provides fee-based services primarily to Hess Corporation and other third-party customers across the United States. Its operations are organized into three strategic segments: Gathering, Processing and Storage, and Terminaling and Export.

The Gathering segment encompasses an extensive network of pipelines and facilities dedicated to the collection and transportation of natural gas, natural gas liquids, and produced water. This includes approximately 1,415 miles of high and low-pressure natural gas and NGL gathering pipelines with a capacity of 675 million cubic feet per day, 590 miles of crude oil gathering pipelines, and 330 miles of produced water gathering systems. These assets are crucial for efficiently moving hydrocarbons and water from production areas to processing facilities.

The Processing and Storage segment includes the Tioga Gas Plant, a key natural gas processing and fractionation facility located in Tioga, North Dakota. This plant plays a vital role in preparing natural gas and NGLs for market distribution. Additionally, the Mentor Storage Terminal in Mentor, Minnesota, offers propane storage in salt caverns along with rail, truck loading, and unloading capabilities, enhancing the company’s logistics and storage capabilities.

The Terminaling and Export segment comprises the Ramberg terminal facility, the Tioga rail terminal, a fleet of crude oil rail cars, and connections to the Dakota Access Pipeline. This segment is complemented by the Johnsons Corner Header System, a crude oil pipeline header system that enhances the company’s transportation network. These assets collectively enable efficient crude oil and NGL transportation, storage, and export operations.

Hess Midstream LP, originally known as Hess Midstream Partners LP, rebranded in December 2019. Founded in 2014 and headquartered in Houston, Texas, the company has established itself as a significant player in the midstream sector, leveraging its integrated assets to provide comprehensive services across the energy value chain. For more information, visit their website at https://www.hessmidstream.com.

Ticker Symbol: HESM Exchange: NYSE Type: common stock Country Origin: United States GICS Sub Industry: Oil & Gas Storage & Transportation Resistance: 42.9 Support: 36.4 Support: 34.2 Support: 32.3 Average Volume 20d: 1,078,113 Last Price: 37.69 SMA 20: 38.62 SMA 50: 40.14 SMA 200: 36.93 ATR: 1.41 Market Cap: 8,560.28M USD P/E: 15.03 P/E Forward: 10.74 P/B: 8.23 P/S: 5.72 RoE: None 3-Month Forecast: Technical Outlook: - The stock is currently trading below its SMA20 (38.62) and SMA50 (40.14), indicating short-term bearish momentum. - However, it is above the SMA200 (36.93), suggesting long-term bullish sentiment. - The Average True Range (ATR) of 1.41 indicates moderate volatility, signaling potential price swings. Key Levels: - Resistance: 42.9 - Support: 36.4, 34.2, 32.3 Fundamental Outlook: - The forward P/E of 10.74 suggests a potential undervaluation, hinting at a possible recovery. - The high P/B ratio of 8.23 indicates a premium relative to book value, which may pose a risk. Conclusion: - In the next three months, HESM is expected to face short-term weakness due to its position below SMA20 and SMA50. - The critical support at 36.4 will be a focal point; if it holds, the stock may attempt to break towards the resistance at 42.9. - A breach below 36.4 could lead to testing lower supports at 34.2, with potential further decline to 32.3 if bearish momentum persists. This forecast integrates both technical and fundamental analysis, providing a balanced view of potential price movements.