Hess Midstream (HESM): Reassessing Valuation After 2026 Outlook and Chevron-Backed Board Shake-Up

Hess Midstream (HESM) just gave investors a two part update, providing a fresh 2026 earnings and volumes outlook along with a reshaped board that tightens Chevron’s grip on the partnership’s governance.

See our latest analysis for Hess Midstream.

Those 2026 targets and the tighter Chevron link come after a choppy stretch, with a 4.5% 1 month share price return but a weak 90 day slide. A 5 year total shareholder return above 140% shows the long term story is still intact, and momentum currently looks more paused than broken.

If this Hess Midstream update has you thinking about what else is quietly compounding in energy infrastructure, it could be a smart moment to explore fast growing stocks with high insider ownership.

With shares still trading below analyst targets and a rich 2026 earnings ramp now on the table, the real debate is simple: Is Hess Midstream quietly undervalued, or is the market already pricing in the next leg of growth?

Most Popular Narrative Narrative: 5.5% Undervalued

Compared with Hess Midstream’s last close at $34.83, the most followed narrative implies a slightly higher fair value, framing an incremental upside rather than a moonshot.

Long term focus on disciplined, low risk growth investments and high operating leverage (80% EBITDA margin) ensures the company can convert volume and pricing tailwinds into higher free cash flow and net income, further enhancing returns even amid inflation and cost pressures.

Read the complete narrative.

To see the engine behind that margin story, the projected revenue climb, and the punchy earnings multiple anchoring this fair value view, dig into the full narrative to unpack the assumptions driving that verdict.

Result: Fair Value of $36.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on Chevron’s Bakken strategy and basin health, where slower drilling or regional production declines could quickly undercut those upbeat earnings assumptions.

Find out about the key risks to this Hess Midstream narrative.

Build Your Own Hess Midstream Narrative

If you see the story differently or want to stress test the numbers yourself, you can spin up a fresh narrative in under three minutes: Do it your way.

A great starting point for your Hess Midstream research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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