(HESM) Hess Midstream Partners - Overview
Sector: Energy | Industry: Oil & Gas Midstream | Exchange: NYSE (USA) | Market Cap: 8.404m USD | Total Return: 12% in 12m
Industry Rotation: +25.3
Avg Turnover: 91.7M
EPS Trend: 92.6%
Qual. Beats: 0
Rev. Trend: 91.2%
Qual. Beats: 0
Warnings
Share dilution 16.6% YoY
Tailwinds
No distinct edge detected
Hess Midstream LP (HESM) is a Houston-based midstream energy company that owns and operates infrastructure for the gathering, processing, storage, and terminaling of natural gas, crude oil, and produced water. Its primary operations are concentrated in the Bakken Shale region of North Dakota, where it provides fee-based services to its parent sponsor, Hess Corporation, and third-party customers. The companys infrastructure includes over 2,400 miles of pipelines, the Tioga Gas Plant, and various rail and truck loading facilities.
The midstream sector typically utilizes long-term, fixed-fee contracts, which are designed to provide stable cash flows by reducing direct exposure to commodity price volatility. As a master limited partnership (MLP) structured entity, HESM functions as a toll-booth business model, earning revenue based on the volume of product moving through its systems rather than the market price of the energy itself.
For a deeper dive into the companys valuation metrics and dividend sustainability, you may wish to explore the data available on ValueRay. Understanding the specific volume commitments from its sponsors is essential for evaluating the long-term stability of the firm’s revenue streams.
- Minimum volume commitments from Hess Corporation provide stable long-term cash flow security
- Increased Bakken shale production volumes drive gathering and processing segment revenue growth
- High dividend yield and consistent distribution growth attract income-focused institutional investors
- Capital expenditure requirements for pipeline expansion impact free cash flow and leverage ratios
- Fluctuations in regional crude oil and natural gas prices influence drilling activity levels
| 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 (1.24b): 3.03 < 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 0.87%; Δ 6.86k% > 0.5%) |
| Asset Turnover: 37.96% > 50% (prev 35.61%; Δ 2.35% > 0%) |
| Interest Coverage Ratio: 4.55 > 6 (EBITDA TTM 1.24b / Interest Expense TTM 224.6m) |
| DSRI: 1.03 (Receivables 156.2m/140.7m, Revenue 1.63b/1.52b) |
| GMI: 1.25 (GM 69.45% / 86.51%) |
| 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-Score: -2.86 (Cap -4..+1) = A |
Over the past week, the price has changed by +3.17%, over one month by +10.65%, over three months by +7.90% and over the past year by +12.00%.
- StrongBuy: 2
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 36.8 | -8% |
P/E Forward = 14.2248
P/S = 5.1576
P/B = 10.0921
P/EG = 1.57
Revenue TTM = 1.63b USD
EBIT TTM = 1.02b USD
EBITDA TTM = 1.24b 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 (from netDebt column, last quarter)
Enterprise Value = 12.17b USD (8.40b + Debt 3.77b - CCE 4.60m)
Interest Coverage Ratio = 4.55 (Ebit TTM 1.02b / Interest Expense TTM 224.6m)
EV/FCF = 18.66x (Enterprise Value 12.17b / FCF TTM 652.4m)
FCF Yield = 5.36% (FCF TTM 652.4m / Enterprise Value 12.17b)
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 = 2.82 (Enterprise Value 12.17b / Total Assets 4.32b)
Interest Expense / Debt = 1.47% (Interest Expense 55.4m / Debt 3.77b)
Taxrate = 15.17% (28.2m / 185.9m)
NOPAT = 866.4m (EBIT 1.02b * (1 - 15.17%))
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 = 3.03 (Net Debt 3.77b / EBITDA 1.24b)
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 = 23.69% (EBIT 1.02b / Capital Employed (Equity 573.5m + L.T.Debt 3.74b))
RoIC = 19.98% (NOPAT 866.4m / Invested Capital 4.34b)
WACC = 5.76% (E(8.40b)/V(12.18b) * Re(7.79%) + D(3.77b)/V(12.18b) * Rd(1.47%) * (1-Tc(0.15)))
Discount Rate = 7.79% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: 86.67 | Cagr: 32.67%
[DCF] Terminal Value 86.63% ; FCFF base≈655.7m ; Y1≈675.4m ; Y5≈760.4m
[DCF] Fair Price = 146.1 (EV 22.52b - Net Debt 3.77b = Equity 18.75b / Shares 128.4m; r=6.0% [WACC]; 5y FCF grow 3.01% → 3.0% )
EPS Correlation: 92.65 | EPS CAGR: 8.55% | SUE: 0.96 | # QB: 0
Revenue Correlation: 91.15 | Revenue CAGR: 6.05% | SUE: 0.10 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.63 | Chg30d=-11.44% | Revisions=-43% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.68 | Chg30d=-7.12% | Revisions=-33% | 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%