Hess Midstream LP exhibits a resilient fee-based model with stable revenue near $400M per quarter and robust cash conversion, as operating cash flow has exceeded net income by a cumulative $1.7B over ten quarters. However, the 2026Q2 gross margin fell to 64.8%...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue remained stable around $400M per quarter, but the 2026Q2 gross margin dropped to 64.8% from 84.9% in 2026Q1, driven by a COGS spike to $140.3M, while operating margin stayed resilient at 63.5%.
Hess Midstream operates on a fee-based model, providing stable and predictable cash flows from its midstream services to Hess and third-party customers.
The company owns and develops a diverse set of midstream assets, positioning it for continued growth in the energy sector.
Hess Midstream has authorized a US$42 million share buyback plan, signaling confidence in its financial health and commitment to returning value to shareholders.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 3, 2026 | $0.75+11.6% vs $0.67 | $399M+0.8% vs $396M |
Q2 2026 May 4, 2026 | $0.68+4.6% vs $0.65 | $390M+0.2% vs $390M |
Q1 2026 Feb 2, 2026 | $0.72-0.4% vs $0.72 | $404M-3.6% vs $419M |
Q4 2025 Nov 3, 2025 | $0.75+2.6% vs $0.73 | $421M+0.7% vs $418M |
Hess Midstream beat Q2 earnings expectations despite lower throughput, as higher tariffs and lower costs offset weaker volumes ahead of rising second-half spending.
Hess Midstream's rising free cash flow and lower capital spending support stronger returns, while flat volumes and near-median valuation temper its growth outlook.
A yield above 6% gets attention, but the real question is whether the cash flow behind it survives the next quarter. Four names on this list pass that test, and one very recognizable brand just proved what happens when the answer is no.
A yield above 6% looks like income until the cash flow behind it disappears. Four names on this list pass the coverage test, and one is here specifically because it just failed it.
Benchmark HESM against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Hess Midstream LP (HESM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $38.78 | $8.01B | 13.56 | 8.4% | 21.82% | 78.14% | 7.34% | |
| $283.01 | $60.75B | 33.22 | 3.06% | 13.49% | 69.17% | — | |
| $54.97 | $2.92B | 16.66 | 7.73% | 12.85% | — | — | |
| $45.65 | $18.86B | 15.22 | 6.61% | 29.2% | 32.85% | — | |
| $21.38 | $10.15B | 24.86 | 6.99% | 30.99% | 20.19% | — | |
| $58.81 | $59.68B | 12.20 | 8.37% | 36.75% | 32.9% | — |
Hess Midstream LP (HESM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Hess Midstream LP (HESM) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 3, 2026·SEC
May 4, 2026·SEC
Mar 4, 2026·SEC
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Hess Midstream LP (HESM) stock FAQ — growth, dividends, profitability & financials explained
Hess Midstream LP (HESM) reported $1.61B in revenue for fiscal year 2025. This represents a 849% increase from $169.7M in 2012.
Hess Midstream LP (HESM) grew revenue by 8.4% over the past year. This is steady growth.
Yes, Hess Midstream LP (HESM) is profitable, generating $375.0M in net income for fiscal year 2025 (21.8% net margin).
Yes, Hess Midstream LP (HESM) pays a dividend with a yield of 7.34%. This makes it attractive for income-focused investors.
Hess Midstream LP (HESM) has a return on equity (ROE) of 78.1%. This is excellent, indicating efficient use of shareholder capital.
Hess Midstream LP (HESM) generated $694.4M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
