Hess Midstream LP (HESM) 10-Year Financial Performance & Capital Metrics

HESM • • Industrial / General

EnergyMidstream Oil & GasPipeline & Gathering SystemsNatural Gas Pipeline Operators

AboutHess Midstream LP owns, develops, operates, and acquires midstream assets. The company operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,350 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 450 million cubic feet per day; and crude oil gathering system comprises approximately 550 miles of crude oil gathering pipelines. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; and crude oil rail cars, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.Show more

Revenue $1.49B +10.8%
EBITDA $1.12B +11.2%
Net Income $223M +88.1%
EPS (Diluted) 2.49 +19.7%
Gross Margin 86.39% +0.8%
EBITDA Margin 75.21% +0.3%
Operating Margin 61.6% +1.5%
Net Margin 14.95% +69.7%
ROE 53.86% +102.6%
ROIC 18.37% +4.7%
Debt/Equity 7.46 -15.6%
Interest Coverage 4.55 -0.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 31.2%
✓Strong 5Y profit CAGR of 26.1%
✓Strong Piotroski F-Score: 8/9
✓FCF machine: 42.5% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 12.0%

✗Weaknesses

✗High debt to equity ratio of 7.5x
✗Dividend payout exceeds 100% of earnings
✗Shares diluted 58.1% in last year

Price & Volume

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Growth Metrics

Revenue CAGR

10Y19.33%

5Y11.97%

3Y7.41%

TTM8.73%

Profit (Net Income) CAGR

10Y21.1%

5Y26.05%

3Y68.78%

TTM74.3%

EPS CAGR

10Y15.29%

5Y15.34%

3Y12.26%

TTM17.39%

ROCE

10Y Avg17.65%

5Y Avg22.31%

3Y Avg23.75%

Latest24.47%

Peer Comparison

Natural Gas Pipeline Operators

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
KNTKKinetik Holdings Inc.	2.4B	37.54	36.80	18.03%	7.29%	4.78%	15.04%	1.19
DTMDT Midstream, Inc.	11.9B	117.03	32.51	6.4%	34.3%	8.32%	3.47%	0.74
AMAntero Midstream Corporation	8.5B	17.84	21.49	5.79%	37.81%	22.87%	7.08%	1.47
HESMHess Midstream LP	4.51B	34.89	14.01	10.83%	18.56%	57.31%	14.05%	7.46
WESWestern Midstream Partners, LP	17B	41.67	10.37	16.06%	35.18%	39.54%	7.5%	2.41
VNOMViper Energy, Inc.	6.29B	37.32	9.77	3.99%	21.25%	2.24%		0.28
SMCSummit Midstream Corp.	324.7M	26.48	-2.07	-6.38%	-2.82%	-1.35%	2.51%	1.03

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	565.1M	509.8M	579.5M	712M	847.6M	1.09B	1.2B	1.27B	1.35B	1.49B
Revenue Growth %	1.22%	-0.1%	0.14%	0.23%	0.19%	0.29%	0.1%	0.06%	0.06%	0.11%
Cost of Goods Sold+	86.1M	99.7M	116.5M	126.9M	142.5M	156.9M	165.6M	181.3M	192.5M	203.1M
COGS % of Revenue	0.15%	0.2%	0.2%	0.18%	0.17%	0.14%	0.14%	0.14%	0.14%	0.14%
Gross Profit+	479M	410.1M	463M	585.1M	705.1M	934.7M	1.04B	1.09B	1.15B	1.29B
Gross Margin %	0.85%	0.8%	0.8%	0.82%	0.83%	0.86%	0.86%	0.86%	0.86%	0.86%
Gross Profit Growth %	1.28%	-0.14%	0.13%	0.26%	0.21%	0.33%	0.11%	0.05%	0.06%	0.12%
Operating Expenses+	284.1M	203.8M	199.9M	206.9M	328.5M	358.2M	311M	300.7M	336.7M	369.8M
OpEx % of Revenue	0.5%	0.4%	0.34%	0.29%	0.39%	0.33%	0.26%	0.24%	0.25%	0.25%
Selling, General & Admin	9.3M	10.4M	13.9M	14.1M	52.4M	21.1M	22.7M	23.1M	26.2M	26.1M
SG&A % of Revenue	0.02%	0.02%	0.02%	0.02%	0.06%	0.02%	0.02%	0.02%	0.02%	0.02%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	274.8M	193.4M	186M	192.8M	276.1M	337.1M	288.3M	277.6M	310.5M	343.7M
Operating Income+	194.9M	206.3M	263.1M	378.2M	376.6M	576.5M	727.2M	791.2M	816.9M	919M
Operating Margin %	0.34%	0.4%	0.45%	0.53%	0.44%	0.53%	0.6%	0.62%	0.61%	0.62%
Operating Income Growth %	4.6%	0.06%	0.28%	0.44%	-0%	0.53%	0.26%	0.09%	0.03%	0.12%
EBITDA+	281M	306M	379.6M	505.1M	519.1M	733.4M	892.8M	972.5M	1.01B	1.12B
EBITDA Margin %	0.5%	0.6%	0.66%	0.71%	0.61%	0.67%	0.74%	0.76%	0.75%	0.75%
EBITDA Growth %	2.55%	0.09%	0.24%	0.33%	0.03%	0.41%	0.22%	0.09%	0.04%	0.11%
D&A (Non-Cash Add-back)	86.1M	99.7M	116.5M	126.9M	142.5M	156.9M	165.6M	181.3M	192.5M	203.1M
EBIT	194.9M	206.3M	267.8M	378.8M	380M	586.7M	737.8M	796.5M	824.6M	933M
Net Interest Income+	-1.5M	-1.4M	-25.8M	-53.3M	-62.4M	-94.7M	-105.4M	-149.3M	-179M	-202.2M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	1.5M	1.4M	25.8M	53.3M	62.4M	94.7M	105.4M	149.3M	179M	202.2M
Other Income/Expense	-1.5M	-1.4M	-21.1M	-52.7M	-59M	-84.5M	-94.8M	-144M	-171.3M	-188.2M
Pretax Income+	193.4M	204.9M	242M	325.5M	317.6M	492M	632.4M	647.2M	645.6M	730.8M
Pretax Margin %	0.34%	0.4%	0.42%	0.46%	0.37%	0.45%	0.53%	0.51%	0.48%	0.49%
Income Tax+	0	0	0	0	-100K	7.1M	14.6M	26.6M	37.9M	71.8M
Effective Tax Rate %	1%	1%	0.17%	0.21%	0.22%	0.05%	0.07%	0.13%	0.18%	0.31%
Net Income+	193.4M	204.9M	41.2M	69.1M	70.1M	24M	46.4M	83.9M	118.6M	223.1M
Net Margin %	0.34%	0.4%	0.07%	0.1%	0.08%	0.02%	0.04%	0.07%	0.09%	0.15%
Net Income Growth %	4.88%	0.06%	-0.8%	0.68%	0.01%	-0.66%	0.93%	0.81%	0.41%	0.88%
Net Income (Continuing)	193.4M	204.9M	242M	325.5M	317.7M	484.9M	617.8M	620.6M	607.7M	659M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	2.03B	1.36B	1.2B	1.2B	549M	283.9M	23M	-65.4M
EPS (Diluted)+	3.54	3.76	0.75	1.27	1.22	1.31	1.76	2.01	2.08	2.49
EPS Growth %	4.9%	0.06%	-0.8%	0.69%	-0.04%	0.07%	0.34%	0.14%	0.03%	0.2%
EPS (Basic)	3.54	3.76	0.75	1.27	1.22	1.33	1.81	2.03	2.11	2.51
Diluted Shares Outstanding	54.56M	54.56M	53.8M	54.7M	54.8M	18.1M	25.7M	41.4M	56.3M	89M
Basic Shares Outstanding	54.56M	54.56M	53.8M	54.6M	54.6M	18M	25.6M	41.3M	56.2M	89M
Dividend Payout Ratio	1.75%	1.5%	11.58%	1.16%	1.22%	1.32%	1.06%	1.08%	1.08%	1.05%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	55.5M	47.4M	111.4M	180.4M	95.9M	101.4M	133.1M	132.3M	136.8M	149.4M
Cash & Short-Term Investments	0	300K	47.2M	109.3M	3.3M	2.6M	2.2M	3.1M	5.4M	4.3M
Cash Only	0	300K	47.2M	109.3M	3.3M	2.6M	2.2M	3.1M	5.4M	4.3M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	51.9M	44.6M	59.8M	67.8M	87.6M	93.2M	120.3M	123M	124.4M	138.9M
Days Sales Outstanding	33.52	31.93	37.67	34.76	37.72	31.16	36.48	35.26	33.73	33.98
Inventory	500K	-300K	0	0	0	0	0	0	0	0
Days Inventory Outstanding	2.12	-	-	-	-	-	-	-	-	-
Other Current Assets	500K	2.8M	4.4M	3.3M	5M	5.6M	10.6M	6.2M	7M	6.2M
Total Non-Current Assets+	2.3B	2.53B	2.52B	2.81B	3.18B	3.27B	3.35B	3.46B	3.65B	4B
Property, Plant & Equipment	2.29B	2.52B	2.52B	2.74B	3.01B	3.11B	3.13B	3.17B	3.23B	3.33B
Fixed Asset Turnover	0.25x	0.20x	0.23x	0.26x	0.28x	0.35x	0.39x	0.40x	0.42x	0.45x
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	0	0	0	67.3M	107.8M	108.4M	101.6M	93.9M	90.2M	87M
Other Non-Current Assets	8.3M	8.4M	3.2M	8.2M	63.9M	53.4M	125.9M	189.2M	333.3M	6.6M
Total Assets+	2.36B	2.57B	2.64B	2.99B	3.28B	3.37B	3.49B	3.59B	3.79B	4.15B
Asset Turnover	0.24x	0.20x	0.22x	0.24x	0.26x	0.32x	0.35x	0.35x	0.36x	0.36x
Asset Growth %	0.71%	0.09%	0.02%	0.14%	0.1%	0.03%	0.03%	0.03%	0.06%	0.1%
Total Current Liabilities+	252.9M	634.2M	74.4M	138.1M	176.1M	125M	170.9M	159.5M	210.2M	219.3M
Accounts Payable	195.3M	28.8M	12.2M	18.6M	30.6M	30M	26.9M	62.7M	79.7M	89.4M
Days Payables Outstanding	827.93	105.44	38.22	53.5	78.38	69.79	59.29	126.23	151.12	160.66
Short-Term Debt	0	0	0	11.3M	0	10M	20M	2.5M	12.5M	22.5M
Deferred Revenue (Current)	1000K	0	0	1000K	0	0	0	0	0	0
Other Current Liabilities	3.6M	272.2M	22.8M	59.2M	43.6M	34.6M	64.2M	24.8M	43.5M	27.3M
Current Ratio	0.22x	0.07x	1.50x	1.31x	0.54x	0.81x	0.78x	0.83x	0.65x	0.68x
Quick Ratio	0.22x	0.08x	1.50x	1.31x	0.54x	0.81x	0.78x	0.83x	0.65x	0.68x
Cash Conversion Cycle	-792.28	-	-	-	-	-	-	-	-	-
Total Non-Current Liabilities+	5.1M	4.3M	5.4M	977M	1.77B	1.92B	2.56B	2.9B	3.22B	3.47B
Long-Term Debt	0	0	0	969.8M	1.75B	1.9B	2.54B	2.88B	3.2B	3.45B
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	0
Deferred Tax Liabilities	0	0	0	0	0	0	0	0	0	500K
Other Non-Current Liabilities	5.1M	4.3M	5.4M	7.2M	16M	23.4M	18.1M	16.6M	17.2M	16.5M
Total Liabilities	258M	638.5M	79.8M	1.12B	1.95B	2.05B	2.73B	3.06B	3.43B	3.69B
Total Debt+	0	0	0	981.1M	1.75B	1.91B	2.56B	2.89B	3.21B	3.47B
Net Debt	0	-300K	-47.2M	871.8M	1.75B	1.91B	2.56B	2.88B	3.21B	3.47B
Debt / Equity	-	-	-	0.20x	1.32x	1.44x	3.40x	5.45x	8.84x	7.46x
Debt / EBITDA	-	-	-	1.94x	3.38x	2.60x	2.87x	2.97x	3.18x	3.09x
Net Debt / EBITDA	-	-0.00x	-0.12x	1.73x	3.37x	2.60x	2.87x	2.96x	3.18x	3.09x
Interest Coverage	129.93x	147.36x	10.20x	7.10x	6.04x	6.09x	6.90x	5.30x	4.56x	4.55x
Total Equity+	2.1B	1.94B	4.59B	4.8B	1.33B	1.33B	753.1M	529M	363.2M	465.3M
Equity Growth %	6.61%	-0.08%	1.37%	0.05%	-0.72%	-0%	-0.43%	-0.3%	-0.31%	0.28%
Book Value per Share	38.44	35.48	85.31	87.69	24.31	73.26	29.30	12.78	6.45	5.23
Total Shareholders' Equity	2.1B	1.94B	2.56B	3.44B	131.5M	125M	204.1M	245.1M	340.2M	530.7M
Common Stock	2.1B	2.24B	506M	501.9M	131.1M	125M	204.1M	245.1M	340.2M	530.7M
Retained Earnings	0	0	0	0	0	0	0	0	0	0
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-385M	-490.9M	-604M	1.2M	400K	0	0	0	0	0
Minority Interest	0	0	2.03B	1.36B	1.2B	1.2B	549M	283.9M	23M	-65.4M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	434.8M	387.7M	399.9M	466.9M	470.7M	641.7M	795.5M	861.1M	866.4M	940.3M
Operating CF Margin %	0.77%	0.76%	0.69%	0.66%	0.56%	0.59%	0.66%	0.68%	0.64%	0.63%
Operating CF Growth %	13.69%	-0.11%	0.03%	0.17%	0.01%	0.36%	0.24%	0.08%	0.01%	0.09%
Net Income	193.4M	206.3M	284.8M	325.5M	317.7M	484.9M	617.8M	620.6M	118.6M	659M
Depreciation & Amortization	86.1M	99.7M	113.1M	126.9M	142.5M	156.9M	165.6M	181.3M	192.5M	203.1M
Stock-Based Compensation	0	0	200K	900K	1.5M	1.5M	1.4M	1.6M	1.7M	1.8M
Deferred Taxes	0	0	0	-1M	-100K	7.3M	14.6M	26.6M	37.9M	71.6M
Other Non-Cash Items	169.4M	119.3M	600K	5M	-3.2M	5.4M	14.1M	16.5M	501.2M	12.8M
Working Capital Changes	155.3M	81.7M	1.2M	9.6M	12.3M	-14.3M	-18M	14.5M	14.5M	-8M
Change in Receivables	-8.2M	5.9M	-15.2M	-6.3M	-19.5M	-5M	-27M	-2.6M	-1M	-14.4M
Change in Inventory	191.5M	500K	-38.4M	19.5M	0	0	0	0	0	0
Change in Payables	169.4M	74.8M	17.8M	-2.4M	15.2M	-500K	6.6M	2.3M	13.6M	11.5M
Cash from Investing+	-361.8M	-263.6M	-136.4M	-307.6M	-497.5M	-301M	-163.2M	-238.2M	-223.5M	-306.1M
Capital Expenditures	-361.8M	-263.6M	-136.4M	-241.9M	-306.4M	-301.1M	-163.2M	-238.2M	-223.5M	-306.1M
CapEx % of Revenue	0.64%	0.52%	0.24%	0.34%	0.36%	0.28%	0.14%	0.19%	0.17%	0.21%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	0	12.8M	1.6M	-101.9M	0	0	0	0	0
Cash from Financing+	-73M	-124.1M	-216.6M	-405.7M	-79.2M	-341.4M	-632.7M	-622M	-640.6M	-635.3M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-339.1M	-306.9M	-477.1M	-396.1M	-85.4M	-31.6M	-49.4M	-91M	-127.5M	-235.3M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	663.7M	183.2M	-441.4M	-329.1M	-622.2M	-460.5M	-493.3M	-455M	-432.6M	-362.5M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	73M	124.1M	263.5M	225M	164.3M	340.6M	632.3M	622.9M	642.9M	634.2M
FCF Margin %	0.13%	0.24%	0.45%	0.32%	0.19%	0.31%	0.53%	0.49%	0.48%	0.43%
FCF Growth %	1.46%	0.7%	1.12%	-0.15%	-0.27%	1.07%	0.86%	-0.01%	0.03%	-0.01%
FCF per Share	1.34	2.27	4.90	4.11	3.00	18.82	24.60	15.05	11.42	7.13
FCF Conversion (FCF/Net Income)	2.25x	1.89x	9.71x	6.76x	6.71x	26.74x	17.14x	10.26x	7.31x	4.21x
Interest Paid	0	0	0	0	0	0	0	0	170.6M	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	16.3%	10.16%	1.26%	1.47%	2.29%	1.81%	4.46%	13.09%	26.59%	53.86%
Return on Invested Capital (ROIC)	8.62%	7.67%	6.09%	5.56%	6.46%	13.69%	16.66%	17.65%	17.55%	18.37%
Gross Margin	84.76%	80.44%	79.9%	82.18%	83.19%	85.63%	86.24%	85.76%	85.7%	86.39%
Net Margin	34.22%	40.19%	7.11%	9.71%	8.27%	2.2%	3.85%	6.59%	8.81%	14.95%
Debt / Equity	-	-	-	0.20x	1.32x	1.44x	3.40x	5.45x	8.84x	7.46x
Interest Coverage	129.93x	147.36x	10.20x	7.10x	6.04x	6.09x	6.90x	5.30x	4.56x	4.55x
FCF Conversion	2.25x	1.89x	9.71x	6.76x	6.71x	26.74x	17.14x	10.26x	7.31x	4.21x
Revenue Growth	121.78%	-9.79%	13.67%	22.86%	19.04%	28.79%	10.28%	5.77%	5.73%	10.83%

Revenue by Segment

	2017	2018	2019	2020	2021	2022	2024
Affiliate Services	-	-	-	-	-	-	1.47B
Affiliate Services Growth	-	-	-	-	-	-	-
Third Party Services	-	-	-	-	-	-	24.1M
Third Party Services Growth	-	-	-	-	-	-	-
Oil and Gas Service	-	-	-	-	-	600.8M	-
Oil and Gas Service Growth	-	-	-	-	-	-	-
Processing And Storage Services	-	-	294.7M	370.3M	435.7M	470.8M	-
Processing And Storage Services Growth	-	-	-	25.65%	17.66%	8.06%	-
Terminaling And Export Services	-	-	130M	159.4M	137.5M	124.5M	-
Terminaling And Export Services Growth	-	-	-	22.62%	-13.74%	-9.45%	-
Water Gathering And Disposal Services	-	-	77.3M	92.6M	90.2M	77.1M	-
Water Gathering And Disposal Services Growth	-	-	-	19.79%	-2.59%	-14.52%	-
Oil And Gas Service	-	-	-	469.3M	540.4M	-	-
Oil And Gas Service Growth	-	-	-	-	15.15%	-	-
Oil And Gas Gathering Services	-	-	345.6M	-	-	-	-
Oil And Gas Gathering Services Growth	-	-	-	-	-	-	-
Gathering	-	324.9M	-	-	-	-	-
Gathering Growth	-	-	-	-	-	-	-
Processing And Storage	227.3M	251.4M	-	-	-	-	-
Processing And Storage Growth	-	10.60%	-	-	-	-	-
Terminaling And Export	66.7M	86.1M	-	-	-	-	-
Terminaling And Export Growth	-	29.09%	-	-	-	-	-
Hess North Dakota Pipelines Operations Limited Partnership	271.6M	-	-	-	-	-	-
Hess North Dakota Pipelines Operations Limited Partnership Growth	-	-	-	-	-	-	-
Interest And Other	200K	-	-	-	-	-	-
Interest And Other Growth	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Hess Midstream LP (HESM) has a price-to-earnings (P/E) ratio of 14.0x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Hess Midstream LP (HESM) reported $1.57B in revenue for fiscal year 2024. This represents a 823% increase from $169.7M in 2012.

Hess Midstream LP (HESM) grew revenue by 10.8% over the past year. This is steady growth.

Yes, Hess Midstream LP (HESM) is profitable, generating $290.9M in net income for fiscal year 2024 (15.0% net margin).

Dividend & Returns

Yes, Hess Midstream LP (HESM) pays a dividend with a yield of 7.58%. This makes it attractive for income-focused investors.

Hess Midstream LP (HESM) has a return on equity (ROE) of 53.9%. This is excellent, indicating efficient use of shareholder capital.

Hess Midstream LP (HESM) generated $666.4M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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