Hess Midstream (HESM)
Market Price (10/7/2026): $36.35 | Market Cap: $4.7 BilSector: Energy | Industry: Oil & Gas Storage & Transportation
Hess Midstream (HESM)
Market Price (10/7/2026): $36.35Market Cap: $4.7 BilSector: EnergyIndustry: Oil & Gas Storage & Transportation
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 15%, Dividend Yield is 7.9%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 12%, FCF Yield is 17% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 62% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 64%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 52% Low stock price volatilityVol 12M is 20% Megatrend and thematic driversMegatrends include North American Energy Infrastructure. Themes include Crude Oil & Natural Gas Midstream, and Energy Logistics & Transportation. | Weak multi-year price returns2Y Excs Rtn is -8.9%, 3Y Excs Rtn is -14% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 74% Weak revenue growthRev Chg QQuarterly Revenue Change % is -3.8% Key risksHESM key risks include [1] an outsized dependence on its primary customer, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 15%, Dividend Yield is 7.9%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 12%, FCF Yield is 17% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 62% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 64%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 52% |
| Low stock price volatilityVol 12M is 20% |
| Megatrend and thematic driversMegatrends include North American Energy Infrastructure. Themes include Crude Oil & Natural Gas Midstream, and Energy Logistics & Transportation. |
| Weak multi-year price returns2Y Excs Rtn is -8.9%, 3Y Excs Rtn is -14% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 74% |
| Weak revenue growthRev Chg QQuarterly Revenue Change % is -3.8% |
| Key risksHESM key risks include [1] an outsized dependence on its primary customer, Show more. |
Qualitative Assessment
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Hess Midstream (HESM) stock has gained about 5% since 6/30/2026 because of the following key factors:
1. Steady Financial Performance and Reaffirmed Guidance for Fiscal Year 2026.
Hess Midstream reported strong fiscal Q2 2026 earnings on August 3, 2026, with an Earnings Per Share (EPS) of $0.75, surpassing analysts' consensus estimates of $0.67 by $0.08. Despite a 3.7% year-over-year decrease in quarterly revenue to $399 million, the company still exceeded analyst revenue estimates. Crucially, management reaffirmed its full-year 2026 guidance, projecting net income between $650-$700 million, Adjusted EBITDA of $1.225-$1.275 billion, and Adjusted Free Cash Flow of $910-$960 million, representing approximately 20% year-over-year growth at the midpoint. This consistent outlook provided stability, signaling operational resilience despite some volumetric declines in fiscal Q2 2026.
2. Sustained Shareholder Returns Through Increased Dividends.
Hess Midstream continued its commitment to shareholder returns by increasing its quarterly cash distribution. On July 27, 2026, the company declared a quarterly cash distribution of $0.7888 per Class A share for fiscal Q2 2026, marking an increase of $0.0096 per share from fiscal Q1 2026. This increase aligns with Hess Midstream's target of 5% annual distribution growth through 2028. The reliable and growing dividend payouts in a midstream sector generally known for robust free cash flow contribute to investor confidence and support the stock price.
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Hess Midstream (HESM) stock has gained about 5% since 6/30/2026 because of the following key factors:
1. Steady Financial Performance and Reaffirmed Guidance for Fiscal Year 2026.
Hess Midstream reported strong fiscal Q2 2026 earnings on August 3, 2026, with an Earnings Per Share (EPS) of $0.75, surpassing analysts' consensus estimates of $0.67 by $0.08. Despite a 3.7% year-over-year decrease in quarterly revenue to $399 million, the company still exceeded analyst revenue estimates. Crucially, management reaffirmed its full-year 2026 guidance, projecting net income between $650-$700 million, Adjusted EBITDA of $1.225-$1.275 billion, and Adjusted Free Cash Flow of $910-$960 million, representing approximately 20% year-over-year growth at the midpoint. This consistent outlook provided stability, signaling operational resilience despite some volumetric declines in fiscal Q2 2026.
2. Sustained Shareholder Returns Through Increased Dividends.
Hess Midstream continued its commitment to shareholder returns by increasing its quarterly cash distribution. On July 27, 2026, the company declared a quarterly cash distribution of $0.7888 per Class A share for fiscal Q2 2026, marking an increase of $0.0096 per share from fiscal Q1 2026. This increase aligns with Hess Midstream's target of 5% annual distribution growth through 2028. The reliable and growing dividend payouts in a midstream sector generally known for robust free cash flow contribute to investor confidence and support the stock price.
3. Low Capital Expenditures Boosting Free Cash Flow.
The company demonstrated a highly capital-efficient model by significantly reducing capital expenditures. In fiscal Q2 2026, capital expenditures plummeted by 56% year-over-year to $30.6 million, largely due to the completion of a major gas compression capacity expansion project. This substantial reduction in spending, coupled with strong operational cash generation, resulted in Adjusted Free Cash Flow of $231.6 million for fiscal Q2 2026. Management anticipates generating approximately $1 billion of Adjusted Free Cash Flow after distributions through 2028, which is earmarked for incremental shareholder returns and debt repayment.
4. Mixed Analyst Sentiment and Contractual Uncertainties.
While Hess Midstream's operational performance remained solid, analyst sentiment presented a mixed picture, preventing significant upward momentum. The consensus analyst rating for HESM was "Sell," with an average price target of $37.50, slightly below the prevailing market price. This was further influenced by J.P. Morgan's downgrade to "Underweight" from "Neutral" on October 2, 2026, citing structural uncertainties related to material minimum volume commitment (MVC) step-downs and the potential for a lower 2029 contract reset based on Chevron's evolving development plans. These long-term contractual risks introduced a degree of caution among investors, balancing out positive financial results.
5. Strong Operational Margins Amidst Volume Fluctuations.
Despite some declines in throughput volumes for oil terminaling (15%), water gathering (12%), and gas processing (4%) in fiscal Q2 2026 compared to fiscal Q2 2025, primarily due to lower new-well activity and planned maintenance, Hess Midstream maintained exceptional operational efficiency. The company's gross Adjusted EBITDA margin remained high at approximately 85% in fiscal Q2 2026, significantly above its long-term target of 75%. This strong margin performance demonstrated the company's ability to extract substantial profit from its operations even with fluctuating volumes, providing underlying stability to its financial profile.
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Stock Movement Drivers
Fundamental Drivers
The 5.0% change in HESM stock from 6/30/2026 to 10/6/2026 was primarily driven by a 2.7% change in the company's Net Income Margin (%).| (LTM values as of) | 6302026 | 10062026 | Change |
|---|---|---|---|
| Stock Price ($) | 36.86 | 38.69 | 5.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,625 | 1,609 | -1.0% |
| Net Income Margin (%) | 22.7% | 23.3% | 2.7% |
| P/E Multiple | 12.9 | 13.2 | 2.6% |
| Shares Outstanding (Mil) | 129 | 128 | 0.6% |
| Cumulative Contribution | 5.0% |
Market Drivers
6/30/2026 to 10/6/2026| Return | Correlation | |
|---|---|---|
| HESM | 5.0% | |
| Market (SPY) | 4.3% | -17.1% |
| Sector (XLE) | 20.0% | 56.8% |
Fundamental Drivers
The 3.6% change in HESM stock from 3/31/2026 to 10/6/2026 was primarily driven by a 6.8% change in the company's Net Income Margin (%).| (LTM values as of) | 3312026 | 10062026 | Change |
|---|---|---|---|
| Stock Price ($) | 37.33 | 38.69 | 3.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,617 | 1,609 | -0.5% |
| Net Income Margin (%) | 21.8% | 23.3% | 6.8% |
| P/E Multiple | 13.7 | 13.2 | -3.4% |
| Shares Outstanding (Mil) | 130 | 128 | 1.0% |
| Cumulative Contribution | 3.6% |
Market Drivers
3/31/2026 to 10/6/2026| Return | Correlation | |
|---|---|---|
| HESM | 3.6% | |
| Market (SPY) | 20.1% | -23.7% |
| Sector (XLE) | 4.8% | 59.4% |
Fundamental Drivers
The 21.8% change in HESM stock from 9/30/2025 to 10/6/2026 was primarily driven by a 25.5% change in the company's Net Income Margin (%).| (LTM values as of) | 9302025 | 10062026 | Change |
|---|---|---|---|
| Stock Price ($) | 31.75 | 38.69 | 21.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,567 | 1,609 | 2.7% |
| Net Income Margin (%) | 18.6% | 23.3% | 25.5% |
| P/E Multiple | 13.3 | 13.2 | -0.4% |
| Shares Outstanding (Mil) | 122 | 128 | -5.1% |
| Cumulative Contribution | 21.8% |
Market Drivers
9/30/2025 to 10/6/2026| Return | Correlation | |
|---|---|---|
| HESM | 21.8% | |
| Market (SPY) | 17.9% | -7.4% |
| Sector (XLE) | 45.9% | 55.2% |
Fundamental Drivers
The 68.1% change in HESM stock from 9/30/2023 to 10/6/2026 was primarily driven by a 227.5% change in the company's Net Income Margin (%).| (LTM values as of) | 9302023 | 10062026 | Change |
|---|---|---|---|
| Stock Price ($) | 23.01 | 38.69 | 68.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,276 | 1,609 | 26.1% |
| Net Income Margin (%) | 7.1% | 23.3% | 227.5% |
| P/E Multiple | 12.7 | 13.2 | 4.3% |
| Shares Outstanding (Mil) | 50 | 128 | -61.0% |
| Cumulative Contribution | 68.1% |
Market Drivers
9/30/2023 to 10/6/2026| Return | Correlation | |
|---|---|---|
| HESM | 68.1% | |
| Market (SPY) | 88.5% | 29.5% |
| Sector (XLE) | 54.1% | 55.5% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| HESM Return | 53% | 17% | 14% | 26% | 1% | 18% | 207% |
| Peers Return | 53% | 28% | 15% | 63% | 5% | 28% | 396% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 14% | 107% |
Monthly Win Rates [3] | |||||||
| HESM Win Rate | 83% | 50% | 67% | 67% | 67% | 80% | |
| Peers Win Rate | 72% | 63% | 55% | 75% | 53% | 70% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| HESM Max Drawdown | -17% | -29% | -17% | -9% | -26% | -10% | |
| Peers Max Drawdown | -16% | -25% | -14% | -13% | -23% | -12% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: OKE, TRGP, KMI, WMB, AM.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 10/6/2026 (YTD)
How Low Can It Go
| Event | HESM | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -14.5% | -18.8% |
| % Gain to Breakeven | 16.9% | 23.1% |
| Time to Breakeven | 101 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -10.6% | -9.5% |
| % Gain to Breakeven | 11.8% | 10.5% |
| Time to Breakeven | 44 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -11.6% | -6.7% |
| % Gain to Breakeven | 13.2% | 7.1% |
| Time to Breakeven | 17 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -70.4% | -33.7% |
| % Gain to Breakeven | 237.5% | 50.9% |
| Time to Breakeven | 260 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.7% | -19.2% |
| % Gain to Breakeven | 38.4% | 23.8% |
| Time to Breakeven | 57 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -25.4% | -3.7% |
| % Gain to Breakeven | 34.1% | 3.9% |
| Time to Breakeven | 422 days | 6 days |
In The Past
Hess Midstream's stock fell -14.5% during the 2025 US Tariff Shock. Such a loss loss requires a 16.9% gain to breakeven.
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| Event | HESM | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -70.4% | -33.7% |
| % Gain to Breakeven | 237.5% | 50.9% |
| Time to Breakeven | 260 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -27.7% | -19.2% |
| % Gain to Breakeven | 38.4% | 23.8% |
| Time to Breakeven | 57 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -25.4% | -3.7% |
| % Gain to Breakeven | 34.1% | 3.9% |
| Time to Breakeven | 422 days | 6 days |
In The Past
Hess Midstream's stock fell -14.5% during the 2025 US Tariff Shock. Such a loss loss requires a 16.9% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Hess Midstream (HESM)
Hess Midstream LP (HESM) is a midstream energy company that owns, develops, and operates essential infrastructure for the oil and gas industry. The company plays a crucial role in connecting hydrocarbon production from wells to market, primarily focusing on the gathering, processing, storage, and transportation of crude oil, natural gas, natural gas liquids (NGLs), and produced water.
The company's services are divided into three core segments. Its Gathering segment utilizes an extensive network of pipelines and compression facilities to collect crude oil, natural gas, and produced water directly from wellheads. The Processing and Storage segment then takes the raw natural gas to be processed into market-ready gas and NGLs at its gas plants, and also provides propane storage and loading facilities. Finally, the Terminaling and Export segment manages the storage, blending, and onward shipment of crude oil, predominantly through rail and pipeline systems, facilitating its delivery to various destinations.
Hess Midstream's primary customers are upstream oil and gas producers who require reliable and efficient infrastructure to transport their raw materials from production sites to larger pipelines, refineries, or export facilities. Given its asset locations, a significant portion of its operations is concentrated in key North American energy basins, particularly the Bakken shale region in North Dakota. The company's services enable the movement of energy products to refiners, chemical plants, and other industrial end-users across the continent.
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Hess Midstream (HESM) is like:
- Kinder Morgan for the Bakken oil and gas fields.
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- Natural Gas Gathering & Compression: Services for collecting and compressing raw natural gas from production sites through pipeline systems.
- Crude Oil Gathering: Services for collecting crude oil from production sites through pipeline systems.
- Produced Water Gathering & Disposal: Services for collecting and disposing of water generated during hydrocarbon extraction.
- Natural Gas Processing & Fractionation: Services for processing raw natural gas to remove impurities and separating natural gas liquids into individual components.
- Propane Storage & Logistics: Services for storing propane and facilitating its loading and unloading for transportation via rail or truck.
- Crude Oil Terminaling & Export: Services for storing, blending, and transferring crude oil to various transportation modes, including rail and pipelines.
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Hess Midstream (HESM) sells primarily to other companies, specifically upstream oil and natural gas producers and potentially downstream processors and marketers.
Its major customer is:
- Hess Corporation (NYSE: HES)
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Jonathan C. Stein, Chief Executive Officer
Jonathan C. Stein was appointed Chief Executive Officer of Hess Midstream LP effective July 18, 2025. He previously served as Chief Financial Officer of Hess Midstream GP LLP from September 2019 to July 2025, and played a leadership role in the formation of the Hess Midstream business entity and its subsequent initial public offering. Prior to joining Hess Midstream, he was a consultant with Ernst & Young's Risk Management and Regulatory Practice, assisting financial services and energy trading clients with risk management infrastructure. Mr. Stein also served as Senior Vice President, Strategy and Planning and Chief Risk Officer for Hess Corporation.
Michael J. Chadwick, Chief Financial Officer
Michael J. Chadwick was appointed Chief Financial Officer of Hess Midstream GP LLC effective July 18, 2025, succeeding Jonathan C. Stein. Mr. Chadwick joined Hess in 2000 and has held increasingly senior financial roles within the company, most recently serving as Vice President and Corporate Controller for Hess Corporation from September 2022 to July 2025. In that role, he was responsible for financial consolidations and reporting, accounting shared services, and Sarbanes-Oxley Act compliance functions.
Michael S. Bast, President and Chief Operating Officer
Michael S. Bast serves as the President and Chief Operating Officer of Hess Midstream.
Gabriela B. Boersner, General Counsel and Secretary
Gabriela B. Boersner holds the position of General Counsel and Secretary at Hess Midstream.
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- Dependence on Hess Corporation (now Chevron): Hess Midstream is substantially reliant on Hess Corporation (now owned by Chevron Corporation) for its revenues and throughput volumes. Any changes in Chevron's operational strategies, such as reduced drilling or production activities in the Bakken region, could significantly impact Hess Midstream's financial performance. For instance, affiliate revenue comprised 96% of total revenue in the past, highlighting this concentration.
- Geographic Concentration in the Bakken Region: Hess Midstream's operations are primarily concentrated in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. This geographic focus exposes the company to localized economic downturns, specific regional regulatory changes, and the potential for a plateau or decline in oil and gas production in the Bakken, which could limit growth opportunities and affect demand for its services.
- Regulatory and Environmental Risks: The company operates in a highly regulated industry. Changes in environmental laws and regulations, particularly concerning methane emissions, carbon dioxide pipelines, and water usage and disposal, can lead to increased compliance costs, operational constraints, and delays or cancellations of expansion projects. Such regulatory uncertainties directly impact capital expenditures and growth plans.
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Hess Midstream LP (HESM) operates in several key midstream sectors within North America, primarily focused on the Bakken and Three Forks Shale plays in North Dakota and surrounding regions. The addressable markets for its main products and services are sized as follows:
Natural Gas Gathering, Compression, Processing, and Fractionation
The global gas processing market size was estimated at USD 243.62 billion in 2025, with North America capturing the largest revenue share in the same year. More specifically, the U.S. natural gas pipeline infrastructure market, which includes gathering and transmission, was calculated at USD 1,058.73 billion in 2024 and is projected to reach approximately USD 2,431.55 billion by 2034, expanding at a compound annual growth rate (CAGR) of 8.67% between 2025 and 2034.
Crude Oil Gathering Systems, Terminaling, and Export
The U.S. oil and gas infrastructure market, encompassing pipelines and other related facilities, was valued at USD 78.9 billion in 2024 and is projected to grow to USD 147.8 billion by 2034, with a CAGR of 6.4% from 2025 to 2034. Within this, the Oil, Gas & NGL Pipelines segment in the U.S. is anticipated to exceed USD 41 billion by 2034.
Produced Water Gathering and Disposal Facilities
The midstream water market in the Bakken region is projected to be US$13.0 billion for the period between 2025 and 2030. This market is part of the larger U.S. midstream water market, which totals US$156 billion from 2025–2030. The global produced water treatment market was valued at USD 8.82 billion in 2024 and is expected to reach USD 18.58 billion by 2034, with North America dominating this market, accounting for 43% of the revenue share in 2024.
Propane Storage, Rail, and Truck Loading/Unloading
The U.S. propane market was valued at USD 44.85 billion in 2025 and is projected to reach USD 69.75 billion by 2034, growing at a CAGR of 5.03% from 2026 to 2034.
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Hess Midstream LP (HESM) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:
- Growth in Gas Throughput Volumes: Hess Midstream anticipates increased gas throughput volumes, particularly from the Bakken region, which directly impacts the utilization of its gathering and processing assets. The company projects approximately 1.5% annualized growth in gas throughput volumes through 2028.
- Infrastructure Expansion Projects: The company is investing in significant infrastructure development, including ongoing gas compression projects, greenfield high-pressure gathering lines, and the construction of a new gas processing plant with a capacity of approximately 125 million cubic feet per day, expected to be operational in 2027. This expansion directly increases its capacity to handle more volumes and generate higher revenue.
- Annual Tariff Rate Escalators: Hess Midstream benefits from annual tariff rate increases, which are contractual price adjustments that contribute to growth in net income and Adjusted EBITDA.
- Increased Third-Party Volumes: The company's ongoing capital expenditures include investments for gathering system well connects to service both Hess and third-party customers, indicating an expectation of continued or growing volumes from non-Hess sources. Hess Midstream anticipates 10% average growth across oil and gas from third-party activity.
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Share Repurchases
- Hess Midstream announced a $60 million repurchase program in March 2026, comprising approximately $18 million in Class B units from an affiliate of Chevron and $42 million in Class A shares through an accelerated share repurchase agreement.
- The company repurchased approximately $100 million of Class B units from its sponsors (Hess Corporation and Global Infrastructure Partners) in January 2025.
- Since the beginning of 2021 through the January 2025 transaction, Hess Midstream has returned $1.95 billion to shareholders through ongoing unit repurchases from its sponsors, reducing the total unit count by nearly 25%. The company anticipates maintaining approximately $1 billion in financial flexibility through 2028 for additional shareholder returns and debt repayment, including potential future repurchases.
Capital Expenditures
- Hess Midstream expects total capital expenditures of approximately $150 million in 2026, representing a significant reduction from estimated 2025 levels.
- The 2026 capital budget allocates approximately $125 million to ongoing capital expenditures for gathering system well connects and maintenance, with an additional $25 million for compression and gathering pipeline buildout.
- Looking beyond 2026, capital expenditures are projected to further decline to less than $75 million annually in both 2027 and 2028, primarily focused on ongoing capital for the interconnection of Chevron and third-party gas, oil, and water volumes, as well as maintenance.
Peer Outperformance in Oil & Gas Storage & Transportation
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| HESM | Hess Midstream | 8.1% | 13.2x | 26.4% | 72.0% | 120.0% | — |
| INSW | International Seaways | 8.0% | 7.4x | 194.9% | 289.1% | 1016.1% | +896pp |
| DHT | DHT | 10.5% | 8.0x | 132.5% | 225.8% | 450.5% | +330pp |
| AM | Antero Midstream | 7.4% | 25.1x | 16.0% | 110.7% | 172.2% | +52pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Oil & Gas Refining & Marketing | 11 | 126.9% | 148.3% | 380.5% | MPC 661% · VLO 545% · PBF 545% |
| Integrated Oil & Gas | 7 | 38.5% | 69.4% | 223.1% | IMO 315% · SU 279% · CVE 226% |
| Oil & Gas Storage & Transportation ← | 18 | 26.4% | 127.3% | 180.7% | INSW 1016% · LPG 867% · TRGP 507% |
| Oil & Gas Equipment & Services | 34 | 34.4% | 24.6% | 86.5% | SEI 1041% · FTI 816% · TDW 544% |
| Coal & Consumable Fuels | 14 | -17.8% | 23.9% | 80.0% | EU 1043% · CCJ 321% · LEU 287% |
| Oil & Gas Drilling | 7 | 57.4% | 5.9% | 57.7% | VAL 131% · PDS 96% · NE 77% |
| Oil & Gas Exploration & Production | 51 | 19.0% | 10.0% | 47.7% | KGEI 9239% · OBE 6415% · EP 2683% |
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Peer Comparisons
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Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 54.50 |
| Mkt Cap | 58.8 |
| Rev LTM | 14,473 |
| Op Inc LTM | 4,257 |
| FCF LTM | 807 |
| FCF 3Y Avg | 1,138 |
| CFO LTM | 5,140 |
| CFO 3Y Avg | 4,502 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.0% |
| Rev Chg 3Y Avg | 4.8% |
| Rev Chg Q | 9.1% |
| QoQ Delta Rev Chg LTM | 2.2% |
| Op Inc Chg LTM | 15.1% |
| Op Inc Chg 3Y Avg | 7.8% |
| Op Mgn LTM | 33.7% |
| Op Mgn 3Y Avg | 31.8% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 42.8% |
| CFO/Rev 3Y Avg | 43.9% |
| FCF/Rev LTM | 12.5% |
| FCF/Rev 3Y Avg | 17.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 58.8 |
| P/S | 3.8 |
| P/Op Inc | 13.8 |
| P/EBIT | 13.5 |
| P/E | 22.8 |
| P/CFO | 10.6 |
| Total Yield | 8.4% |
| Dividend Yield | 4.0% |
| FCF Yield 3Y Avg | 5.6% |
| D/E | 0.4 |
| Net D/E | 0.4 |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Gathering | 871 | 799 | 730 | 678 | 631 |
| Processing and Storage | 620 | 578 | 502 | 471 | 436 |
| Terminaling and Export | 131 | 119 | 117 | 126 | 138 |
| Interest and Other | 0 | 0 | 0 | 0 | 0 |
| Total | 1,621 | 1,496 | 1,349 | 1,275 | 1,204 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Gathering | 509 | 459 | 418 | 390 | 378 |
| Processing and Storage | 432 | 400 | 338 | 324 | 253 |
| Terminaling and Export | 77 | 70 | 70 | 85 | 104 |
| Interest and Other | -9 | -10 | -9 | -7 | -7 |
| Total | 1,008 | 919 | 817 | 791 | 727 |
| $ Mil | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Gathering | 102 | 66 | 36 | 19 | 35 |
| Processing and Storage | 84 | 57 | 26 | 14 | 35 |
| Terminaling and Export | 17 | 14 | 10 | 5 | 10 |
| Interest and Other | -83 | -54 | -26 | -14 | -10 |
| Total | 119 | 84 | 46 | 24 | 70 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Gathering | 2,414 | 2,299 | 2,139 | 2,022 | 1,927 |
| Processing and Storage | 963 | 1,011 | 1,048 | 1,099 | 1,150 |
| Interest and Other | 781 | 593 | 338 | 191 | 128 |
| Terminaling and Export | 231 | 248 | 264 | 276 | 281 |
| Total | 4,388 | 4,151 | 3,790 | 3,588 | 3,486 |
Price Behavior
| Market Price | $38.69 | |
| Market Cap ($ Bil) | 5.0 | |
| First Trading Date | 04/05/2017 | |
| Distance from 52W High | -5.6% | |
| 50 Days | 200 Days | |
| DMA Price | $39.52 | $37.16 |
| DMA Trend | up | up |
| Distance from DMA | -2.1% | 4.1% |
| 3M | 1YR | |
| Volatility | 18.8% | 20.3% |
| Downside Capture | -22.30 | -25.91 |
| Upside Capture | -13.44 | 5.79 |
| Correlation (SPY) | -17.6% | -7.4% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.24 | -0.23 | -0.35 | -0.44 | -0.12 | 0.44 |
| Up Beta | -0.22 | -0.70 | -0.43 | -0.70 | -0.53 | 0.38 |
| Down Beta | -1.32 | 0.62 | -0.04 | -0.16 | 0.30 | 0.84 |
| Up Capture | -39% | -35% | -29% | -25% | -2% | 10% |
| Bmk +ve Days | 6 | 16 | 27 | 66 | 132 | 424 |
| Stock +ve Days | 7 | 14 | 27 | 59 | 132 | 409 |
| Down Capture | 54% | 25% | -51% | -67% | -40% | 39% |
| Bmk -ve Days | 16 | 26 | 37 | 60 | 120 | 328 |
| Stock -ve Days | 15 | 28 | 37 | 67 | 120 | 339 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HESM | |
|---|---|---|---|---|
| HESM | 22.4% | 20.5% | 0.87 | - |
| Sector ETF (XLE) | 46.8% | 21.9% | 1.66 | 55.1% |
| Equity (SPY) | 17.5% | 13.0% | 0.96 | -7.4% |
| Gold (GLD) | 6.9% | 29.6% | 0.23 | 0.4% |
| Commodities (DBC) | 46.1% | 20.8% | 1.71 | 33.5% |
| Real Estate (VNQ) | 2.1% | 13.7% | -0.10 | 15.4% |
| Bitcoin (BTCUSD) | -29.8% | 44.3% | -0.67 | 1.1% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HESM | |
|---|---|---|---|---|
| HESM | 15.2% | 26.5% | 0.52 | - |
| Sector ETF (XLE) | 23.4% | 25.5% | 0.80 | 61.7% |
| Equity (SPY) | 13.9% | 17.1% | 0.62 | 34.4% |
| Gold (GLD) | 18.7% | 18.9% | 0.80 | 7.9% |
| Commodities (DBC) | 10.3% | 19.5% | 0.40 | 39.1% |
| Real Estate (VNQ) | 1.2% | 18.8% | -0.04 | 33.3% |
| Bitcoin (BTCUSD) | 16.0% | 52.2% | 0.47 | 14.2% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HESM | |
|---|---|---|---|---|
| HESM | 11.9% | 38.3% | 0.43 | - |
| Sector ETF (XLE) | 10.9% | 29.6% | 0.40 | 59.8% |
| Equity (SPY) | 15.6% | 17.9% | 0.74 | 38.7% |
| Gold (GLD) | 11.6% | 16.4% | 0.58 | 5.0% |
| Commodities (DBC) | 8.3% | 18.1% | 0.37 | 36.2% |
| Real Estate (VNQ) | 4.2% | 20.7% | 0.16 | 32.7% |
| Bitcoin (BTCUSD) | 64.1% | 66.2% | 1.04 | 14.3% |
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Returns Analyses
Earnings Returns History
Updated 9/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/3/2026 | -0.1% | -0.6% | 0.5% |
| 5/4/2026 | 3.7% | 2.2% | 2.3% |
| 2/2/2026 | -1.4% | 2.9% | 13.7% |
| 11/3/2025 | 1.5% | 2.2% | 2.9% |
| 7/30/2025 | 3.5% | 1.7% | 2.2% |
| 4/30/2025 | -3.5% | -3.3% | -1.3% |
| 1/29/2025 | 2.0% | 0.3% | 2.4% |
| 10/30/2024 | -0.5% | -0.3% | 9.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 8 | 11 | 20 |
| # Negative | 16 | 13 | 4 |
| Median Positive | 2.7% | 2.2% | 2.8% |
| Median Negative | -1.3% | -2.2% | -4.8% |
| Max Positive | 8.9% | 12.2% | 13.9% |
| Max Negative | -3.5% | -4.9% | -9.7% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/3/2026 | -0.1% | -0.6% | 0.5% |
| 5/4/2026 | 3.7% | 2.2% | 2.3% |
| 2/2/2026 | -1.4% | 2.9% | 13.7% |
| 11/3/2025 | 1.5% | 2.2% | 2.9% |
| 7/30/2025 | 3.5% | 1.7% | 2.2% |
| 4/30/2025 | -3.5% | -3.3% | -1.3% |
| 1/29/2025 | 2.0% | 0.3% | 2.4% |
| 10/30/2024 | -0.5% | -0.3% | 9.2% |
| 7/31/2024 | -0.6% | -4.2% | -2.4% |
| 4/25/2024 | -1.9% | -4.2% | 1.0% |
| 1/31/2024 | -1.0% | -2.5% | 1.8% |
| 10/25/2023 | -0.5% | -1.1% | 7.6% |
| 7/26/2023 | -2.1% | -1.1% | -7.3% |
| 4/26/2023 | -0.7% | 3.9% | 0.0% |
| 1/25/2023 | -3.1% | -3.0% | -9.7% |
| 10/26/2022 | 3.4% | 6.2% | 11.2% |
| 7/27/2022 | -1.5% | -2.2% | 2.7% |
| 4/27/2022 | 0.7% | 2.0% | 9.8% |
| 1/26/2022 | -1.9% | 1.0% | 5.8% |
| 10/27/2021 | -1.2% | 1.0% | 0.7% |
| 7/28/2021 | 8.9% | 12.2% | 9.1% |
| 4/28/2021 | 1.9% | -1.7% | 13.9% |
| 1/27/2021 | -2.6% | -0.1% | 0.6% |
| 10/28/2020 | -0.7% | -4.9% | 8.3% |
| SUMMARY STATS | |||
| # Positive | 8 | 11 | 20 |
| # Negative | 16 | 13 | 4 |
| Median Positive | 2.7% | 2.2% | 2.8% |
| Median Negative | -1.3% | -2.2% | -4.8% |
| Max Positive | 8.9% | 12.2% | 13.9% |
| Max Negative | -3.5% | -4.9% | -9.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-Q |
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/25/2026 | 10-K |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/08/2025 | 10-Q |
| 12/31/2024 | 02/27/2025 | 10-K |
| 09/30/2024 | 11/06/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/29/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 02/27/2023 | 10-K |
| 09/30/2022 | 11/03/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-Q |
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/25/2026 | 10-K |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/06/2025 | 10-Q |
| 03/31/2025 | 05/08/2025 | 10-Q |
| 12/31/2024 | 02/27/2025 | 10-K |
| 09/30/2024 | 11/06/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/29/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 02/27/2023 | 10-K |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/04/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
| 12/31/2021 | 03/01/2022 | 10-K |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/02/2021 | 10-Q |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 02/23/2021 | 10-K |
| 09/30/2020 | 11/05/2020 | 10-Q |
| 06/30/2020 | 08/06/2020 | 10-Q |
| 03/31/2020 | 05/07/2020 | 10-Q |
| 12/31/2019 | 02/21/2020 | 10-K |
| 09/30/2019 | 11/07/2019 | 10-Q |
Recent Forward Guidance
Updated 10/4/2026Latest: Q2 2026 Earnings Reported 8/3/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Gas gathering | Reported | 450 | 455 | 460 | 0 | Affirmed | Guidance: 455 for 2026 | |
| 2026 Crude oil gathering | Reported | 115 | 120 | 125 | 0 | Affirmed | Guidance: 120 for 2026 | |
| 2026 Gas processing | Reported | 435 | 440 | 445 | 0 | Affirmed | Guidance: 440 for 2026 | |
| 2026 Crude terminals | Reported | 125 | 130 | 135 | 0 | Affirmed | Guidance: 130 for 2026 | |
| 2026 Water gathering | Reported | 125 | 130 | 135 | 0 | Affirmed | Guidance: 130 for 2026 | |
| 2026 Adjusted EBITDA | Reported | 1.23 Bil | 1.25 Bil | 1.27 Bil | 0 | Affirmed | Guidance: 1.25 Bil for 2026 | |
| 2026 Net income | Reported | 650.00 Mil | 675.00 Mil | 700.00 Mil | 0 | Affirmed | Guidance: 675.00 Mil for 2026 | |
| 2026 Capital expenditures | Reported | 105.00 Mil | 0 | Affirmed | Guidance: 105.00 Mil for 2026 | |||
| 2026 Adjusted free cash flow | Reported | 910.00 Mil | 935.00 Mil | 960.00 Mil | 0 | Affirmed | Guidance: 935.00 Mil for 2026 | |
| 2028 Adjusted Free Cash Flow after Distributions | Reported | 1.00 Bil | ||||||
Prior: Q3 2025 Earnings Reported 11/3/2025
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2025 Adjusted EBITDA | Reported | 315.00 Mil | 320.00 Mil | 325.00 Mil | ||||
| Q4 2025 Net Income | Reported | 170.00 Mil | 175.00 Mil | 180.00 Mil | ||||
| Q4 2025 Capital Expenditures | Reported | 70.00 Mil | ||||||
| 2025 Adjusted EBITDA | Reported | 1.25 Bil | 1.25 Bil | 1.25 Bil | -0.8% | Lowered | Guidance: 1.26 Bil for 2025 | |
| 2025 Net Income | Reported | 685.00 Mil | 690.00 Mil | 695.00 Mil | -2.8% | Lowered | Guidance: 710.00 Mil for 2025 | |
| 2025 Capital Expenditures | Reported | 270.00 Mil | -10.0% | Lowered | Guidance: 300.00 Mil for 2025 | |||
Investor Activity (13F)
Updated Oct 7, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
Industry Resources
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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