HESM Stock Analysis: Hess Midstream | NYSE
Oil & Gas Midstream | NYSE, USA | Market Cap: 7.783m USD | 12M Return: 7.8% | US4281031058 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 49.7M
EPS Trend: 98.7%
Qual. Beats: 1
Rev. Trend: 97.2%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 9.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Hess Midstream LP (NYSE: HESM) is a Houston-based midstream energy company founded in 2014 that acquires, owns, operates, and develops midstream assets providing fee-based services primarily to its sponsor (Hess Corporation), its subsidiaries, and third-party customers across the United States. The company was formerly known as Hess Midstream Partners LP before renaming in December 2019.
The business is organized into three reportable segments. The Gathering segment owns natural gas gathering and compression systems, crude oil gathering systems, and produced water gathering and disposal facilities, including approximately 1,430 miles of natural gas and NGL gathering pipelines with capacity of roughly 685 million cubic feet per day, approximately 615 miles of crude oil gathering pipelines, and approximately 360 miles of produced water pipelines. The Processing and Storage segment includes the Tioga Gas Plant, a natural gas processing and fractionation plant in North Dakota, and the Mentor Storage Terminal, a propane storage cavern with rail and truck loading facilities in Minnesota. The Terminaling and Export segment comprises the Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, Dakota Access Pipeline (DAPL) connections, and the Johnsons Corner Header System.
As a midstream operator, Hess Midstream earns revenue primarily through fee-based contracts for gathering, processing, storage, and terminaling services, a structure that typically insulates cash flows from direct commodity price volatility. The companys assets are largely concentrated in the Bakken shale region of North Dakota, where it supports the production activities of its sponsor and other producers operating in the basin.
- Hess Corporation drilling pace drives gathering segment volumes
- Dakota Access Pipeline regulatory rulings impact terminaling revenue
- Fee-based contracts and distribution growth support valuation
| Net Income: 375.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 1.25 > 1.0 |
| NWC/Revenue: -2.91% < 20% (prev -3.99%; Δ 1.09% < -1%) |
| CFO/TA 0.24 > 3% & CFO 1.04b > Net Income 375.0m |
| Net Debt (3.67b) to EBITDA (1.23b): 2.99 < 3 |
| Current Ratio: 0.77 > 1.5 & < 3 |
| Outstanding Shares: last quarter (128.4m) vs 12m ago 5.42% < -2% |
| Gross Margin: 80.77% > 18% (prev 86.85%; Δ -6.07% > 0.5%) |
| Asset Turnover: 37.11% > 50% (prev 35.43%; Δ 1.68% > 0%) |
| Interest Coverage Ratio: 4.50 > 6 (EBIT TTM 1.01b / Interest Expense TTM 223.7m) |
| DSRI: 1.02 (Receivables 151.3m/144.0m, Revenue 1.61b/1.57b) |
| GMI: 1.08 (GM 86.85% / 80.77%) |
| AQI: 0.90 (AQ_t 0.19 / AQ_t-1 0.21) |
| SGI: 1.03 (Revenue 1.61b / 1.57b) |
| TATA: -0.16 (NI 375.0m - CFO 1.04b) / TA 4.26b) |
| Beneish M = -3.00 (Cap -4..+1) = A |
As of October 08, 2026, the stock is trading at USD 33.03 with a total of 11,907,598 shares traded. Over the past week, the price has changed by -11.61%, over one month by -19.38%, over three months by -13.94% and over the past year by +7.83%.
Current recommended Stop Loss: 31.80 (which is 3.7% or 1.5 ATR below the current price).
Hess Midstream has no consensus analysts rating.
| Analysts Target Price | 37.5 | 13.5% |
P/E Trailing = 13.0172
P/E Forward = 9.9108
P/S = 4.8217
P/B = 9.6725
P/EG = 1.57
Revenue TTM = 1.61b USD
EBIT TTM = 1.01b USD
EBITDA TTM = 1.23b USD
Long Term Debt = 3.64b USD (from longTermDebt, last quarter)
Short Term Debt = 37.5m USD (from shortTermDebt, last quarter)
Debt = 3.68b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.67b USD (calculated: Debt 3.68b - CCE 5.00m)
Enterprise Value = 11.5b USD (7.78b + Debt 3.68b - CCE 5.00m)
Interest Coverage Ratio = 4.50 (Ebit TTM 1.01b / Interest Expense TTM 223.7m)
EV/FCF = 16.50x (Enterprise Value 11.5b / FCF TTM 694.4m)
FCF Yield = 6.06% (FCF TTM 694.4m / Enterprise Value 11.5b)
FCF Margin = 43.12% (FCF TTM 694.4m / Revenue TTM 1.61b)
Net Margin = 23.29% (Net Income TTM 375.0m / Revenue TTM 1.61b)
Gross Margin = 80.77% ((Revenue TTM 1.61b - Cost of Revenue TTM 309.6m) / Revenue TTM)
Gross Margin QoQ = 64.84% (prev 84.95%)
Tobins Q-Ratio = 2.69 (Enterprise Value 11.5b / Total Assets 4.26b)
Interest Expense / Debt = 6.08% (Interest Expense 223.7m / Debt 3.68b)
Taxrate = 15.20% (121.0m / 795.9m)
NOPAT = 854.2m (EBIT 1.01b * (1 - 15.20%))
Current Ratio = 0.77 (Total Current Assets 157.2m / Total Current Liabilities 204.0m)
Debt / Equity = 7.15 (Debt 3.68b / totalStockholderEquity, last quarter 514.6m)
Debt / EBITDA = 2.99 (Net Debt 3.67b / EBITDA 1.23b)
Debt / FCF = 5.29 (Net Debt 3.67b / FCF TTM 694.4m)
Total Stockholder Equity = 543.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.64% (Net Income 375.0m / Total Assets 4.26b)
RoE = 69.02% (Net Income TTM 375.0m / Total Stockholder Equity 543.4m)
RoCE = 24.07% (EBIT 1.01b / Capital Employed (Equity 543.4m + L.T.Debt 3.64b))
RoIC = 20.91% (NOPAT 854.2m / Invested Capital 4.09b)
WACC = 6.43% (E(7.78b)/V(11.5b) * Re(7.03%) + D(3.68b)/V(11.5b) * Rd(6.08%) * (1-Tc(0.15)))
Discount Rate = 7.03% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.73 | Cagr: 26.84%
[DCF] Terminal Value 75.98% ; FCFF base≈683.2m ; Y1≈710.0m ; Y5≈805.5m
[DCF] Fair Price = 68.28 (EV 12.4b - Net Debt 3.67b = Equity 8.76b / Shares 128.4m; r=8.35% [WACC [floored]]; 5y FCF grow 4.20% → 2.50% )
EPS Correlation: 98.66 | EPS CAGR: 15.16% | SUE: 2.42 | # QB: 1
Revenue Correlation: 97.23 | Revenue CAGR: 8.43% | SUE: 0.43 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.73 | Chg30d=+0.77% | Revisions=+50% | Analysts=4
EPS current Year (2026-12-31): EPS=2.83 | Chg30d=+0.45% | Revisions=+50% | GrowthEPS=-1.0% | GrowthRev=-0.7%
EPS next Year (2027-12-31): EPS=2.96 | Chg30d=+0.67% | Revisions=+50% | GrowthEPS=+4.5% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: +75% (up=9, down=0)