Hess Midstream remains a strong buy, offering a secure 7.9% yield and robust distribution growth, underpinned by long-term minimum volume commitments with Chevron. HESM's fee-based revenue model, protected by contracts through 2033, insulates cash flow from oil price volatility and supports at least 5% annual distribution growth through 2028. Leverage is healthy at 3.1x, with a path to 2.5x by 2028, enabling debt reduction, buybacks, and optionality for M&A or further capital returns.
Hess Midstream stock remains stagnant due to uncertainty around Chevron's Bakken acreage strategy. Chevron is evaluating the profitability of the Bakken assets; until a clear, positive outcome emerges, HESM's long-term value remains uncertain. Second quarter results showed slightly lower EBITDA and net income, but free cash flow improved due to reduced capital expenditures.
Hess Midstream (HESM) remains a compelling Buy, offering a 7.93% forward yield and the sector's cheapest EV/EBITDA multiple. Q2 2026 saw earnings and free cash flow growth, margin expansion to 85%, and another distribution increase, reaffirming robust income stability. Management reaffirmed full-year guidance, targets 5% annual distribution growth through 2028, and is on track to reduce leverage to 2.5x by 2028.
Brian, a caller from Pennsylvania, phoned in to Mad Money on August 13, 2026 with a stock his son had been researching.
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.
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.
HOUSTON--(BUSINESS WIRE)--Hess Midstream LP Announces Distribution Per Share Level Increase.
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%.
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