If you're bullish on energy companies, perhaps due to the ongoing conflict with Iran, you might want to consider Hess Midstream LP (HESM +0.28%), which was spun off from Hess back in 2014. (Hess itself was bought by Chevron in 2025.)
A key point of interest for the stock is its dividend, which recently yielded a hefty 7.7%. Better still, the dividend has been increased quarterly for around nine years.
Image source: Getty Images.
How much might a $10,000 investment in the company be worth in 10 years? Well, here's how the stock has done recently:
Period
Average Annual Total Return
Year to date
23.55%
Past 1 year
5.4%
Past 3 years
19.6%
Past 5 years
17.5%
Source: YCharts, as of Sept. 3, 2026. Note: Total return includes dividends reinvested.
As an investor, you can't really know how fast the stock will grow over the coming decade. Using a conservative rate of return, a $10,000 investment:
Growing at 8% annually, your stake would double to about $21,589. Growing at 10% annually, it would reach about $25,937. Growing at 12% annually, it would triple to about $31,058.
Premium Feature
Moneyball Superscore
70/100
Today's Change
(
0.28
%) $
0.11
Current Price
$
39.96
In its own words, Hess Midstream...
owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota, one of the most prolific crude oil gathering basins in North America. HESM conducts its business through three operating segments: gathering, processing and storage and terminaling and export.
One note on the tax side: the "LP" in Hess Midstream's name is a holdover from its history and doesn't carry the usual MLP tax treatment. A 2019 restructuring converted the public company into an "Up-C" entity treated as a corporation for federal tax purposes. For you, that's simpler than owning an MLP -- distributions show up on a Form 1099-DIV instead of a Schedule K-1, and there's no obstacle to holding the stock in an IRA or another tax-deferred account.
If you're intrigued by this fat dividend, take a closer look at Hess Midstream.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
You may not know much about Hess Midstream LP (HESM +0.39%), but if you're a fan of dividends, it's worth getting to know -- because its dividend was yielding a whopping 7.8% as of the end of August.
Hess Midstream produces and processes natural gas primarily from the Bakken and Three Forks Shale regions in North Dakota. Known, in part, as a pipeline company, it serves Hess (a wholly owned subsidiary of Chevron) and third-party customers -- and its shareholders.
Its dividend is particularly impressive not only because of the size of the yield, but also because it has been increased quarterly for lots of quarters -- going back around nine years. Better still, these are not minor increases -- the quarterly dividend paid in mid-August was fully 7% higher than the year-earlier payout, and 56% higher than the dividend five years prior.
Image source: Getty Images.
That's not all -- Hess Midstream has also been buying back shares, which rewards shareholders by making each remaining share worth more. (Imagine cutting a pizza into six pieces instead of eight -- that's the effect of buying back and essentially retiring lots of shares.)
Premium Feature
Moneyball Superscore
70/100
Today's Change
(
0.39
%) $
0.16
Current Price
$
40.19
The war with Iran has provided a tailwind to some energy companies -- with Chevron, for example, up 36% year-to-date (as of Aug. 31) and ExxonMobil up 33%. Hess Midstream is up 21%.
As you dig into Hess Midstream and consider it, keep in mind that it's a "limited partnership" (LP), not an ordinary common stock. So it's a pass-through entity, tax-wise, and doesn't pay corporate income taxes. It passes the income and losses through to its limited partners (which includes you, if you own shares), who report them on their tax returns and pay any taxes due at their own tax rate. If you own shares of any LPs, you'll receive a Schedule K-1 form from each one come tax time, and you'll use that to report your share of the business's profits or losses on your return.
If this hefty dividend yield is appealing to you, take a closer look at Hess Midstream.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CVX OXY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I may initiate a position in WES without further notice. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation for the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits its own investment qualifications.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MPLX, EPD, ET, HESM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Brian, a caller from Pennsylvania, phoned in to Mad Money on August 13, 2026 with a stock his son had been researching. “My son has been following a stock that has over a 7% dividend yield, and they’ve historically raised the dividend every quarter,” he told Jim Cramer, before asking whether he should build a position in Hess Midstream (NYSE:HESM | HESM Price Prediction). Cramer’s verdict landed quickly: “I happen to like Hess Midstream. I happen to like the midstreams, especially Hess… I think you have a winner.”
The Caller’s Case
Brian built his question around two claims. The first was the yield: over a 7% dividend yield, as he described it on air. The second claim was more interesting: Brian said the company had “historically raised the dividend every quarter.” That assertion about a partnership public since 2017 holds up cleanly when checked against the record. Brian also flagged something Cramer glossed past: “Chevron happens to make up about 3.5% of my portfolio.”
What the Distribution Record Actually Shows
Hess Midstream pays quarterly distributions, and the dataset contains 37 records going back to 2017. Every payment in that series is larger than the one before it. There is no cut and no flat quarter anywhere in the progression, which runs from $0.2703 in 2017 to $0.7888 today.
The most recent distribution was declared July 27, 2026, went ex-dividend on August 6, 2026, and was paid today, August 14, 2026, at $0.7888 per share. The prior payout was $0.7792. Trailing twelve-month distributions total $3.0869, and the annualized forward figure sits at $3.1552. On the Q2 2026 call, CEO Jonathan Stein reiterated a “targeted 5% annual distribution growth, which we expect to continue.” Past distribution growth does not guarantee future distributions.
Cramer’s Answer and the Chevron Link
Cramer stated a preference for the midstream category and for Hess Midstream in particular. He also connected the dots on the customer relationship: “Hess was bought by Chevron, which is why they had the related Chevron.”
Chevron (NYSE:CVX) acquired Hess Corporation. Hess Midstream is a separate, publicly traded partnership that was not itself acquired. Its anchor customer is Hess Corporation, now inside Chevron. Midstream operators handle gathering, processing, transportation and storage of oil and gas rather than drilling for it, and revenue typically comes from fee-based contracts with producers, which is why they are often held for income. Chevron’s most recent Q2 2026 8-K filing confirmed the integration is well underway.
The Question Cramer Did Not Answer
Brian effectively asked two questions on that call, and Cramer answered the one about the stock. The other was buried in the setup: he already holds Chevron at about 3.5% of his portfolio, and he is considering adding a company whose principal customer relationship runs through Chevron.
A reader in a similar position might reasonably think about what that stacking looks like. Both names sit in energy. Both depend, to different degrees, on Chevron’s Bakken development pace and capital allocation choices. This is a consideration to weigh, not a criticism of Cramer’s view on the stock itself and not advice on what any particular investor should do.
Where the Stock Stands
Hess Midstream closed Thursday at $39.78, down 0.75% on the day. The units are up 22.58% year to date, from $32.45 at the end of 2025, up 2.62% over the past year from $38.77 on August 13, 2025, and up 137.7% over five years from $16.74 on August 13, 2021. Market capitalization sits at approximately $5.14 billion.
The Kicker
A distribution record that runs uninterrupted across 37 quarterly payments, with every payment larger than the one before, is unusual in any corner of the market. That is the part of Brian’s case that stands on its own regardless of whose verdict you find persuasive, and it is the part any prospective holder can verify without taking anyone’s word for it. This article is informational and not a recommendation on either stock.
Contact [email protected] for any questions or corrections.
For the quarter ended June 2026, Hess Midstream Partners LP (HESM - Free Report) reported revenue of $399 million, down 3.7% over the same period last year. EPS came in at $0.75, compared to $0.74 in the year-ago quarter.
The reported revenue represents a surprise of +1% over the Zacks Consensus Estimate of $395.07 million. With the consensus EPS estimate being $0.69, the EPS surprise was +8.7%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hess Midstream Partners performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Volumes - Gas gathering: 445.00 MMcf/d versus 440.91 MMcf/d estimated by two analysts on average.Throughput Volumes - Crude oil gathering: 103.00 MBbl/d versus the two-analyst average estimate of 115.29 MBbl/d.Throughput Volumes - Water gathering: 121.00 MBbl/d compared to the 125.49 MBbl/d average estimate based on two analysts.Throughput Volumes - Crude terminals: 117.00 MBbl/d compared to the 126.53 MBbl/d average estimate based on two analysts.Throughput Volumes - NGL loading: 17.00 MBbl/d compared to the 14.97 MBbl/d average estimate based on two analysts.Throughput Volumes - Gas processing: 433.00 MMcf/d versus 428.40 MMcf/d estimated by two analysts on average.Revenue- Gathering: $209.8 million versus $210.13 million estimated by two analysts on average.Revenue- Terminaling and Export: $37.9 million compared to the $35.73 million average estimate based on two analysts.Revenue- Processing and Storage: $151.3 million versus $152.87 million estimated by two analysts on average.Adjusted EBITDA- Terminaling and Export: $30.1 million compared to the $26.37 million average estimate based on two analysts.Adjusted EBITDA- Gathering: $156.6 million versus $155.03 million estimated by two analysts on average.View all Key Company Metrics for Hess Midstream Partners here>>>
Shares of Hess Midstream Partners have returned +3% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Hess Midstream Partners LP (HESM - Free Report) reported $399 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 3.7%. EPS of $0.75 for the same period compares to $0.74 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $395.07 million, representing a surprise of +1%. The company delivered an EPS surprise of +8.7%, with the consensus EPS estimate being $0.69.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Hess Midstream Partners performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Volumes - Gas gathering: 445.00 MMcf/d versus the two-analyst average estimate of 440.91 MMcf/d.Throughput Volumes - Crude oil gathering: 103.00 MBbl/d compared to the 115.29 MBbl/d average estimate based on two analysts.Throughput Volumes - Water gathering: 121.00 MBbl/d compared to the 125.49 MBbl/d average estimate based on two analysts.Throughput Volumes - Crude terminals: 117.00 MBbl/d compared to the 126.53 MBbl/d average estimate based on two analysts.Throughput Volumes - NGL loading: 17.00 MBbl/d versus 14.97 MBbl/d estimated by two analysts on average.Throughput Volumes - Gas processing: 433.00 MMcf/d versus the two-analyst average estimate of 428.40 MMcf/d.Revenue- Gathering: $209.8 million versus the two-analyst average estimate of $210.13 million.Revenue- Terminaling and Export: $37.9 million versus $35.73 million estimated by two analysts on average.Revenue- Processing and Storage: $151.3 million versus the two-analyst average estimate of $152.87 million.View all Key Company Metrics for Hess Midstream Partners here>>>
Shares of Hess Midstream Partners have returned +7% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Hess Midstream Partners NYSE: HESM reported higher second-quarter net income and adjusted EBITDA, supported by lower operating expenses and general and administrative savings, while reaffirming its full-year financial outlook and plans for shareholder returns and debt reduction.
Net income for the second quarter of 2026 was $174 million, compared with about $158 million in the first quarter, while adjusted EBITDA rose to $314 million from $300 million. Chief Financial Officer Mike Chadwick said the increase primarily reflected operating activity that shifted into the second half of the year, as well as lower G&A allocations.
Get HESM alerts:
Revenue excluding pass-through revenue increased by about $10 million sequentially. Gathering revenue rose approximately $7 million, and processing revenue increased approximately $3 million, Chadwick said.
Operations and Volume Outlook Chief Executive Officer Jonathan Stein said the company completed planned maintenance at TGP on time and under budget during the quarter. Hess Midstream plans maintenance at LM4 in the third quarter and expects to complete work that had shifted from the first half into the latter half of the year.
Second-quarter throughput averaged 433 million cubic feet per day for gas processing, 117,000 barrels of oil per day for crude terminaling, and 121,000 barrels of water per day for water gathering. Compared with the first quarter, oil-related volumes were flat to lower, while gas volumes increased as additional third-party volumes helped offset the impact of TGP maintenance, Stein said.
The company continues to expect higher volumes in the second half of 2026 than in the first half. Stein said the anticipated increase reflects the normal timing of wells coming online as Chevron optimizes its drilling program, along with longer laterals and greater productivity discussed by Chevron.
“The volume growth that we had was really planned and just part of normal phasing,” Stein said. He added that the company expects continued quarter-over-quarter volume growth, including at least 5% growth into the second half of the year.
Stein said Chevron’s efficiency gains in the basin have helped maintain production at lower rig counts. From Hess Midstream’s perspective, longer laterals can allow similar throughput volumes to be handled with fewer wells, supporting capital efficiency. He said the company is not assuming production growth beyond the production expectations previously discussed by Chevron, with future growth drivers expected to include inflation-based tariff escalation and operating-cost savings.
Margins, Capital Spending and Third-Quarter View Hess Midstream’s gross adjusted EBITDA margin was approximately 85% in the second quarter, above its long-term 75% target. Chadwick said the margin benefited in part from relatively minor credits recorded during the quarter, but that the larger factor was the phasing of operating expenses into the third and fourth quarters.
While the company has maintained margins above 80% for an extended period, Chadwick said management remains comfortable retaining the 75% long-term margin target rather than changing its guidance.
Capital expenditures totaled approximately $31 million in the second quarter, including the completion of greenfield high-pressure gathering pipeline infrastructure. The company expects spending to increase in the third quarter as planned activity rises.
For the third quarter, Hess Midstream expects net income of approximately $165 million to $175 million and adjusted EBITDA of $310 million to $320 million. The midpoint of the EBITDA outlook is roughly flat with the second quarter, as higher projected revenue and volumes are expected to be offset by higher operating expenses, including deferred maintenance work.
Adjusted free cash flow is expected to decline sequentially in the third quarter because of higher capital expenditures, Chadwick said.
Full-Year Guidance and Capital Allocation The company reiterated its 2026 outlook for net income of $650 million to $700 million and adjusted EBITDA of $1.225 billion to $1.275 billion, with the EBITDA midpoint approximately flat compared with 2025. It also maintained adjusted free cash flow guidance of $910 million to $960 million, representing a 20% year-over-year increase at the midpoint, according to Stein.
Chadwick said the range of potential outcomes for full-year EBITDA will depend largely on weather and maintenance execution. Favorable weather and continued successful maintenance execution could support results toward the higher end of the range, while operational interruptions or higher maintenance costs could pressure results.
Second-quarter adjusted free cash flow was approximately $232 million, down about 2% from the first quarter. Net interest expense, excluding amortization of deferred financing costs, was approximately $51 million. The revolving credit facility balance was $256 million at quarter-end, down approximately $87 million from the first quarter. After funding its targeted 5% annual distribution growth, Hess Midstream expects approximately $280 million of excess adjusted free cash flow in 2026. The company plans to use that cash for incremental shareholder returns and debt repayment.
Chadwick said the board will continue to evaluate the mix of share repurchases and debt reduction during the year. The company repurchased $60 million of shares from public holders and its sponsor in March, while second-quarter capital allocation included the $87 million reduction in revolver borrowings.
Hess Midstream was at roughly 3 times leverage during the quarter and expects that ratio to decline as debt is reduced and EBITDA increases. Chadwick said the company’s outlook indicates leverage could reach about 2.5 times by 2028, though management does not expect it to move materially below that level.
About Hess Midstream Partners (NYSE:HESM)Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.
Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Hess Midstream Partners Right Now?Before you consider Hess Midstream Partners, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hess Midstream Partners wasn't on the list.
While Hess Midstream Partners currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
HOUSTON--(BUSINESS WIRE)---- $HESM--Hess Midstream LP (NYSE: HESM) (“Hess Midstream” or the “Company”) today reported second quarter 2026 net income of $173.7 million compared with net income of $179.7 million for the second quarter of 2025. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $96.4 million, or $0.75 basic earnings per Class A share, compared with $0.74 basic earnings per Class A share in the second quarter of 2025. Hess Midstream generated Adjusted.
The energy sector is ripe with interesting dividend opportunities. Still, experienced investors know that high-yield pipeline stocks are among the best places to be for dependable midstream energy income.
Due to perceived safety and familiarity, income-hungry market participants perusing the midstream often embrace large-cap names, including the three E's: Enbridge (ENB 1.73%), Energy Transfer, and Enterprise Products Partners. Focusing on the $123.2 billion Enbridge for a moment, investors' adulation for that pipeline giant is understandable. It's a large-cap stock with a dividend yield of 4.9%.
These pipeline stocks sport impressive dividend yields. Image source: Getty Images.
Those are appealing numbers, ones that imply a level of comfort craved by many dividend investors. However, market participants willing to go further down the midstream market capitalization spectrum can be rewarded with both significant payouts and upside potential.
The unheralded duo of Hess Midstream (HESM 0.35%) and Western Midstream (WES +1.39%) confirm as much.
All hail Hess A couple of things explain Hess Midstream's overlooked status. First, the company has a market value of $8.3 billion, making it a mid-cap stock, and the investing public consistently overlooks that segment. Second, while many midstream players focus on the Permian Basin or the Gulf Coast region, Hess does not.
Rather, this pipeline operator controls gas, oil, and water assets in the Bakken and Three Forks shale regions of North Dakota. Geography doesn't alter the fact that this energy stock carries an impressive dividend yield of 7.7%. Oh yeah, it's a payout grower, too. In January, Hess Midstream announced a distribution increase while noting that its free-cash-flow growth through 2028 should support dividend growth of at least 5% annually.
As its name implies, Hess is, in fact, a midstream company, but investors who aren't yet familiar with this name should note this operator doesn't compare on an apples-to-apples basis with Enbridge. Hess is fully vertically integrated within one basin and is highly dependent on its relationship with Chevron.
Today's Change
(
-0.35
%) $
-0.14
Current Price
$
40.20
In the first quarter, Hess derived 96% of its revenue from Chevron contracts. On the surface, that sounds risky, but some of the risk is defrayed on multiple fronts. First, Hess isn't taking on commodity price risk. Second, while there is some volume risk here, the company has sturdy minimum-volume commitments with Chevron, which provide clarity for investors. Investors don't seem to mind the Chevron relationship, as Hess Midstream's shares are up 16.2% this year.
Winning with Western Midstream From an income perspective, Western Midstream is another energy stock that deserves more attention. This $18.8 billion company delivers the dividend goods, as evidenced by its 8.1% yield. More importantly, the Permian Basin operator has a five-year streak of dividend increases to its credit.
Western Midstream forecast 2026 distributable cash flow of $1.85 billion to $2.05 billion, and first-quarter operating and maintenance expenses declined by 7%, implying this payout is on solid ground. The potential long-term upside for both the dividend and the stock is supported by the operator's enviable position in the Delaware Basin. Not the state of Delaware, but one of the most lucrative portions of the broader Permian Basin.
In the first quarter, the company produced a record amount of oil and natural gas liquids (NGLs) in the Delaware Basin. Western paid $1.6 billion for Brazos in a deal aimed at fortifying the buyer's position in the Delaware Basin. That deal, which closed last month, could add as much as $100 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) this year while transforming Western into a must-have partner for Permian drillers.
Today's Change
(
1.39
%) $
0.64
Current Price
$
46.61
Investors looking for another reason to consider this stock may want to examine the $1.5 billion acquisition of Aris Water Solutions, completed last October. That deal positions Western as one of the leading water providers in the Permian Basin, potentially giving it a durable competitive advantage over rivals that focus more on energy storage and transportation.
Hess Midstream LP is transitioning from heavy infrastructure investment to maximizing cash generation and increasing shareholder returns, forming the basis for my Buy rating. HESM's fee-based business model, supported by long-term agreements and minimum volume commitments, underpins dependable cash flows and sustainable distribution growth. Management targets at least 5% annual distribution growth through 2028, alongside disciplined unit repurchases, prudent debt management, and selective acquisitions.
Hess Midstream remains a "Strong Buy," offering an 8.5% yield and at least 15% upside, despite recent underperformance and Bakken drilling headwinds. HESM's long-term contract with Chevron through 2033, with annual CPI-linked fee escalators, secures stable cash flow and mitigates near-term oil price and volume risks. Free cash flow yield stands at ~13%, supported by reduced capex, growing third-party revenues, and robust EBITDA margins of 83%.
There are some highly compelling 8%+ yields available today. I detail 2 of them in this article that are often overlooked, yet have solid balance sheets, promising growth potential, and strong coverage. I also share some of the risks to keep in mind.
Hess Midstream Partners (HESM) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Hess Midstream remains a "Strong Buy," offering an 8% yield and 5%+ distribution growth, with fair value seen near $45. HESM's revenue is protected by long-term, inflation-linked fee contracts and minimum volume commitments, mitigating commodity price risk through at least 2028. Lower capex and disciplined capital allocation are driving higher free cash flow, supporting both buybacks and leverage reduction toward 2.75x.
Hess Midstream LP (HESM) remains a Buy, demonstrating strong cash flow, resilient financials, and a sustainable, competitive yield despite macro uncertainty. HESM pivots from heavy CAPEX to capital returns, targeting 5% distribution growth through 2028, with recent buybacks and targeting leverage reduction below 2.5x Adj. EBITDA. Guidance calls for Adj. FCF to reach $850–900 million, growing 10% annually, supporting an 8.4% yield and 76% payout ratio by 2026.
Hess Midstream faces risk as its core Bakken acreage remains high-cost and lacks profitability. Both HESM and Chevron confirm Bakken production will remain flat at 200,000 BOED. The rig count is now down to three. The lack of production growth limits HESM's future prospects. Current dividend increases serve as a short-term distraction.
SG Americas Securities LLC cut its holdings in Hess Midstream Partners LP (NYSE:HESM – Free Report) by 66.2% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 36,608 shares of the company’s stock after selling 71,629 shares during the quarter. SG Americas Securities LLC’s holdings in Hess Midstream Partners were worth $1,263,000 at the end of the most recent quarter.
Several other large investors have also modified their holdings of the business. Diversified Trust Co. acquired a new stake in shares of Hess Midstream Partners in the fourth quarter valued at approximately $352,000. Penbrook Management LLC grew its position in shares of Hess Midstream Partners by 30.5% in the fourth quarter. Penbrook Management LLC now owns 30,055 shares of the company’s stock valued at $1,037,000 after purchasing an additional 7,025 shares during the last quarter. Avior Wealth Management LLC acquired a new stake in shares of Hess Midstream Partners in the fourth quarter valued at approximately $249,000. Severin Investments LLC acquired a new stake in shares of Hess Midstream Partners in the third quarter valued at approximately $301,000. Finally, Strategic Advocates LLC acquired a new stake in shares of Hess Midstream Partners in the third quarter valued at approximately $28,000. 98.97% of the stock is currently owned by institutional investors and hedge funds.
Hess Midstream Partners Stock Performance Shares of HESM opened at $39.28 on Wednesday. The company has a debt-to-equity ratio of 8.54, a quick ratio of 0.85 and a current ratio of 0.85. The company has a market capitalization of $8.16 billion, a price-to-earnings ratio of 13.73 and a beta of 0.58. The company’s 50 day simple moving average is $38.10 and its 200 day simple moving average is $35.39. Hess Midstream Partners LP has a 1 year low of $31.63 and a 1 year high of $44.14.
Hess Midstream Partners (NYSE:HESM – Get Free Report) last posted its quarterly earnings results on Monday, February 2nd. The company reported $0.72 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.72. The company had revenue of $374.50 million for the quarter, compared to the consensus estimate of $419.16 million. Hess Midstream Partners had a net margin of 21.77% and a return on equity of 74.89%. Hess Midstream Partners’s revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.68 earnings per share. On average, sell-side analysts predict that Hess Midstream Partners LP will post 2.5 EPS for the current year.
Hess Midstream Partners Increases Dividend The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Thursday, February 5th were paid a dividend of $0.7641 per share. This is an increase from Hess Midstream Partners’s previous quarterly dividend of $0.75. This represents a $3.06 dividend on an annualized basis and a yield of 7.8%. The ex-dividend date of this dividend was Thursday, February 5th. Hess Midstream Partners’s payout ratio is 106.64%.
Analysts Set New Price Targets Several analysts have recently commented on HESM shares. Zacks Research upgraded shares of Hess Midstream Partners from a “strong sell” rating to a “hold” rating in a research report on Monday, March 2nd. Weiss Ratings raised shares of Hess Midstream Partners from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, March 2nd. Raymond James Financial downgraded shares of Hess Midstream Partners from an “outperform” rating to a “market perform” rating in a research note on Monday, January 5th. Finally, Wells Fargo & Company upped their price objective on shares of Hess Midstream Partners from $39.00 to $40.00 and gave the company an “equal weight” rating in a research note on Friday, March 13th. One investment analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $40.71.
Check Out Our Latest Report on HESM
Hess Midstream Partners Company Profile (Free Report)
Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.
Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.
Featured Articles Five stocks we like better than Hess Midstream Partners Want to see what other hedge funds are holding HESM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Hess Midstream Partners LP (NYSE:HESM – Free Report).
Receive News & Ratings for Hess Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hess Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINESG Americas Securities LLC Invests $1.27 Million in Inhibrx Biosciences, Inc. $INBX
NEXT HEADLINE »SG Americas Securities LLC Has $1.26 Million Stake in Costamare Inc. $CMRE
Shares of Hess Midstream Partners LP (NYSE:HESM – Get Free Report) have been assigned an average recommendation of “Hold” from the nine analysts that are presently covering the stock, MarketBeat reports. Eight investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $40.7143.
A number of equities research analysts recently commented on HESM shares. Wells Fargo & Company increased their target price on shares of Hess Midstream Partners from $39.00 to $40.00 and gave the company an “equal weight” rating in a research report on Friday, March 13th. Weiss Ratings raised shares of Hess Midstream Partners from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 2nd. Raymond James Financial cut shares of Hess Midstream Partners from an “outperform” rating to a “market perform” rating in a research report on Monday, January 5th. Finally, Zacks Research raised shares of Hess Midstream Partners from a “strong sell” rating to a “hold” rating in a research report on Monday, March 2nd.
View Our Latest Research Report on Hess Midstream Partners
Hess Midstream Partners Price Performance Shares of HESM opened at $39.62 on Thursday. The company has a 50 day moving average price of $38.17 and a 200-day moving average price of $35.42. Hess Midstream Partners has a fifty-two week low of $31.63 and a fifty-two week high of $44.14. The stock has a market capitalization of $8.23 billion, a PE ratio of 13.85 and a beta of 0.58. The company has a debt-to-equity ratio of 8.54, a quick ratio of 0.85 and a current ratio of 0.85.
Hess Midstream Partners (NYSE:HESM – Get Free Report) last announced its quarterly earnings results on Monday, February 2nd. The company reported $0.72 earnings per share for the quarter, hitting the consensus estimate of $0.72. Hess Midstream Partners had a net margin of 21.77% and a return on equity of 74.89%. The firm had revenue of $374.50 million during the quarter, compared to analysts’ expectations of $419.16 million. During the same quarter in the prior year, the company earned $0.68 EPS. The company’s revenue was up 2.1% compared to the same quarter last year. Equities analysts predict that Hess Midstream Partners will post 2.5 earnings per share for the current fiscal year.
Hess Midstream Partners Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Thursday, February 5th were given a dividend of $0.7641 per share. The ex-dividend date of this dividend was Thursday, February 5th. This is a positive change from Hess Midstream Partners’s previous quarterly dividend of $0.75. This represents a $3.06 dividend on an annualized basis and a yield of 7.7%. Hess Midstream Partners’s dividend payout ratio is currently 106.99%.
Institutional Investors Weigh In On Hess Midstream Partners A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. raised its holdings in shares of Hess Midstream Partners by 14.3% in the second quarter. Geneos Wealth Management Inc. now owns 2,400 shares of the company’s stock worth $92,000 after buying an additional 300 shares during the last quarter. Kestra Private Wealth Services LLC raised its holdings in shares of Hess Midstream Partners by 1.3% in the fourth quarter. Kestra Private Wealth Services LLC now owns 25,766 shares of the company’s stock worth $889,000 after buying an additional 330 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in shares of Hess Midstream Partners by 14.1% in the third quarter. Farther Finance Advisors LLC now owns 2,696 shares of the company’s stock worth $93,000 after buying an additional 333 shares during the last quarter. Investment Management Corp VA ADV raised its holdings in shares of Hess Midstream Partners by 3.0% in the fourth quarter. Investment Management Corp VA ADV now owns 12,519 shares of the company’s stock worth $432,000 after buying an additional 362 shares during the last quarter. Finally, Cetera Investment Advisers raised its holdings in shares of Hess Midstream Partners by 0.8% in the fourth quarter. Cetera Investment Advisers now owns 44,931 shares of the company’s stock worth $1,550,000 after buying an additional 378 shares during the last quarter. Hedge funds and other institutional investors own 98.97% of the company’s stock.
Hess Midstream Partners Company Profile (Get Free Report)
Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.
Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.
Featured Articles Five stocks we like better than Hess Midstream Partners
Receive News & Ratings for Hess Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hess Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEStagwell Inc. (NASDAQ:STGW) Given Consensus Rating of “Moderate Buy” by Analysts
NEXT HEADLINE »Hudson Technologies, Inc. (NASDAQ:HDSN) Receives Consensus Rating of “Hold” from Analysts
Eagle Global Advisors LLC trimmed its holdings in shares of Hess Midstream Partners LP (NYSE: HESM) by 10.8% during the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,672,776 shares of the company's stock after selling 202,710 shares during
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated April 28, 2026, Cushing Asset Management, LP dba NXG Investment Management sold all 1,357,200 shares of Hess Midstream (HESM 0.67%) in the first quarter. The estimated transaction value was $50.29 million, calculated using the average closing price for the quarter. The quarter-end value of the position declined by $46.82 million, reflecting both the share sale and stock price changes.
What else to knowThis was a complete exit; Hess Midstream now represents none of the fund's 13F AUM.Top holdings after the filing:NYSE:TRGP: $163.55 million (8.1% of AUM)NYSE:ET: $154.35 million (7.7% of AUM)NYSE:WMB: $123.73 million (6.2% of AUM)NYSE:MPLX: $106.10 million (5.3% of AUM)NYSE:DTM: $97.92 million (4.9% of AUM)As of April 27, 2026, Hess Midstream shares were priced at $37.02, up 3.2% over the past year, underperforming the S&P 500 by 26.34 percentage points.Company overviewMetricValueRevenue (TTM)$1.62 billionNet income (TTM)$352.90 millionDividend yield7.84%Price (as of market close April 27, 2026)$37.02Company snapshotOwns and operates natural gas and crude oil gathering systems, gas processing and storage facilities, and terminaling and export assets in the U.S. midstream energy sector.Operates through three segments: Gathering; Processing and Storage; and Terminaling and Export.Headquartered in Houston, Texas, with a strategic focus on supporting upstream oil and gas development.Hess Midstream is a leading U.S. midstream energy partnership focused on the ownership and operation of critical infrastructure supporting upstream oil and gas development. The company leverages its integrated asset base and long-term contracts to deliver stable earnings and attractive distributions. Its strategic position in key production areas and strong customer relationships underpin its competitive advantage in the midstream sector.
What this transaction means for investorsThe top five holdings in Cushing’s portfolio are midstream energy names. In fact, the energy sector factors heavily into its entire portfolio; as of Q3 2025, Hess Midstream ranked No. 6. Cushing trimmed its share count in Q4, moving Hess Midstream down to No. 15, and in Q1 2026, it exited completely.
While notable, the move appears to reflect a shift within the sector rather than away from it. The fund’s top holdings are currently large, diversified pipeline operators with multi-basin exposure. By comparison, Hess Midstream has a more concentrated asset base, focusing primarily in the Bakken region with a single core customer: Chevron Corporation, following its acquisition of Hess. As a result, Cushing may have chosen to allocate capital in more diversified midstream operators with broader exposure and more balanced risk profiles.
That said, Hess Midstream is still a predictable, income-oriented business with long-term, fee-based contracts. Whether it’s a fit for an individual investor’s portfolio depends on their preference for stability vs. diversification. For investors already diversified across sectors, Hess Midstream can serve as a stable, income-generating foundation within the energy space.
Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
HOUSTON--(BUSINESS WIRE)---- $HESM--Hess Midstream LP (NYSE: HESM) (“Hess Midstream” or the “Company”) today reported first quarter 2026 net income of $157.7 million compared with net income of $161.4 million for the first quarter of 2025. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $87.6 million, or $0.68 basic earnings per Class A share, compared with $0.65 basic earnings per Class A share in the first quarter of 2025. Hess Midstream generated Adjusted EB.
Although the revenue and EPS for Hess Midstream Partners (HESM) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
While the top- and bottom-line numbers for Hess Midstream Partners (HESM) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Hess Midstream earns a Buy rating for its high yield, robust distribution growth, and Chevron-backed, fee-based contracts extending through 2033. HESM's distribution has grown for eight consecutive years, with a 5-year CAGR of 11.29%, and management targets at least 5% annual growth through 2028. Q1 2026 results showed a 2.6% rise in adjusted EBITDA, a 24.3% increase in adjusted free cash flow, and continued share/unit buybacks.
The Undercovered Dozen series spotlights 12 lesser-covered stocks featured on Seeking Alpha between May 29 and June 5. This curated selection aims to provide fresh investment ideas and foster community discussion around under-the-radar equities. Readers are encouraged to engage, share perspectives, and highlight additional overlooked investment opportunities.
