Hess Midstream LP owns, develops, operates, and acquires midstream assets.
Hess Midstream Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$25.87|
|52 Week High||US$14.56|
|52 Week Low||US$27.62|
|1 Month Change||9.06%|
|3 Month Change||-0.23%|
|1 Year Change||54.82%|
|3 Year Change||13.07%|
|5 Year Change||n/a|
|Change since IPO||1.06%|
Recent News & Updates
Hess: Another Discovery Or Two
Two more wells found oil and are drilling for deeper targets. The breakeven of the projects is among the best in the industry. Production growth for several years is assured from the discoveries already made. The unconventional business has become very competitive with the offshore business. The higher cash flow in the current year has sharply reduced the need to raise cash.
Hess Midstream: A Big Distribution Increase And Even Bigger Unit Buybacks
Hess Midstream has marked 2021 as a year of rewarding unitholders with an announcement of a big 11%+ distribution increase and even bigger unit buybacks of $750m. Their financial results for the first half of 2021 have been very impressive with their operating cash flow increasing by over 20% year-on-year. Their unit buybacks will remove approximately 11% of their units and thus means that their higher distributions will not cost any more overall. This leaves ample excess free cash flow to send their distributions even higher in the future, especially given their favorable earnings outlook for 2022 and 2023. Since they show a clear desire to reward their unitholders, it seems very likely that these solid fundamentals will keep their distributions growing and thus my bullish rating remains appropriate.
Hess Corporation: High Tech Growth Pace At An Oil Company Price
The demand for oil is very likely to grow. Hess, therefore, has a very bright future given the Guyana partnership with Exxon Mobil. Cash flow growth in the next five years is very likely to surprise the market. That growth is unlikely to slow in the near future. The Guyana discoveries already made will grow cash flow at least through the end of the decade. The next platform begins production in the first half of 2022.
Hess Midstream (NYSE:HESM) Is Increasing Its Dividend To US$0.50
Hess Midstream LP ( NYSE:HESM ) will increase its dividend on the 13th of August to US$0.50. This will take the...
Is Hess Midstream (NYSE:HESM) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
|HESM||US Oil and Gas||US Market|
Return vs Industry: HESM exceeded the US Oil and Gas industry which returned 52.5% over the past year.
Return vs Market: HESM exceeded the US Market which returned 33.8% over the past year.
Stable Share Price: HESM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HESM's weekly volatility (4%) has been stable over the past year.
About the Company
Hess 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 crude oil gathering systems; and produced water gathering and disposal facilities.
Hess Midstream Fundamentals Summary
|HESM fundamental statistics|
Is HESM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|HESM income statement (TTM)|
|Cost of Revenue||US$273.90m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.58|
|Net Profit Margin||2.85%|
How did HESM perform over the long term?See historical performance and comparison
7.8%Current Dividend Yield
Is Hess Midstream undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HESM ($25.87) is trading below our estimate of fair value ($40.34)
Significantly Below Fair Value: HESM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HESM is poor value based on its PE Ratio (206.1x) compared to the US Oil and Gas industry average (18.2x).
PE vs Market: HESM is poor value based on its PE Ratio (206.1x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: HESM is poor value based on its PEG Ratio (12.1x)
Price to Book Ratio
PB vs Industry: HESM is overvalued based on its PB Ratio (35.6x) compared to the US Oil and Gas industry average (1.8x).
How is Hess Midstream forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HESM's forecast earnings growth (17.1% per year) is above the savings rate (2%).
Earnings vs Market: HESM's earnings (17.1% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: HESM's earnings are forecast to grow, but not significantly.
Revenue vs Market: HESM's revenue (7.7% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: HESM's revenue (7.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HESM's Return on Equity is forecast to be low in 3 years time (18%).
How has Hess Midstream performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HESM has high quality earnings.
Growing Profit Margin: HESM's current net profit margins (2.9%) are lower than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: HESM's earnings have declined by 39.1% per year over the past 5 years.
Accelerating Growth: HESM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HESM had negative earnings growth (-30%) over the past year, making it difficult to compare to the Oil and Gas industry average (-19.4%).
Return on Equity
High ROE: Whilst HESM's Return on Equity (40.16%) is outstanding, this metric is skewed due to their high level of debt.
How is Hess Midstream's financial position?
Financial Position Analysis
Short Term Liabilities: HESM's short term assets ($110.4M) do not cover its short term liabilities ($127.0M).
Long Term Liabilities: HESM's short term assets ($110.4M) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: HESM's debt to equity ratio (129.2%) is considered high.
Reducing Debt: Insufficient data to determine if HESM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: HESM's debt is well covered by operating cash flow (39%).
Interest Coverage: HESM's interest payments on its debt are well covered by EBIT (7.1x coverage).
What is Hess Midstream current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HESM's dividend (7.8%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: HESM's dividend (7.8%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HESM has been paying a dividend for less than 10 years.
Growing Dividend: HESM's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (116.7%), HESM's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HESM's dividends in 3 years are not forecast to be well covered by earnings (101.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Hess (67 yo)
Mr. John B. Hess has been the Chief Executive Officer at Hess Corporation since May 3, 1995. Mr. Hess has been the Chairman of the Board of Directors and Chief Executive Officer of Hess Midstream GP LLC, t...
Experienced Management: HESM's management team is seasoned and experienced (7.2 years average tenure).
Experienced Board: HESM's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hess Midstream LP's employee growth, exchange listings and data sources
- Name: Hess Midstream LP
- Ticker: HESM
- Exchange: NYSE
- Founded: 2014
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Implied Market Cap: US$6.553b
- Market Cap: US$647.744m
- Shares outstanding: 253.31m
- Website: https://www.hessmidstream.com
- Hess Midstream LP
- 1501 McKinney Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:15|
|End of Day Share Price||2021/09/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.