HESM
EnergyHess Midstream LP · Oil & Gas Midstream · $8B
What is Hess Midstream LP?
Hess Midstream LP is a mid-cap midstream energy partnership that gathers, processes, stores, and exports crude oil, natural gas, and natural gas liquids. Founded in 2017 and headquartered in Houston, Texas, it serves producers operating primarily in the Bakken region of North Dakota.
The partnership earns fee-based revenue by moving hydrocarbons through its owned infrastructure — from wellhead to market. Its three operating segments cover natural gas gathering and compression, crude oil gathering, processing and fractionation, propane storage, and terminaling and export. Because most contracts are fee-based, revenue is relatively insulated from commodity price swings, a structural feature common to midstream businesses.
Hess Midstream LP was founded in 2017 and is headquartered in Houston, Texas.
- Natural gas and NGL gathering pipeline network (~1,350 miles)
- Crude oil gathering system (~550 miles of pipelines)
- Tioga Gas Plant — processing and fractionation in North Dakota
- Mentor Storage Terminal — propane storage and rail/truck loading
- Ramberg and Tioga rail terminals for crude oil export
Is HESM a Good Stock to Buy?
UQS Score rates HESM as Good overall, reflecting a mixed but fundamentally grounded profile.
The Quality pillar stands out as the partnership's clearest strength, consistent with the fee-based, contract-driven nature of midstream operations that tends to generate predictable cash flows. Valuation is also rated Good, suggesting the market is not pricing HESM at a significant premium relative to its fundamentals.
Growth and Risk are both rated Weak — the partnership faces limited near-term expansion signals and carries risk characteristics that investors in income-oriented energy infrastructure should weigh carefully.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does HESM pay dividends?
Yes — Hess Midstream LP pays a dividend.
HESM pays a regular dividend, which is typical for midstream partnerships structured to return cash to unitholders. The fee-based revenue model supports distribution consistency, as cash flows are less exposed to commodity price volatility than upstream producers. Income-focused investors often look to midstream names like HESM for yield, though distribution sustainability should always be evaluated alongside the Risk pillar profile.
When does HESM report earnings?
Hess Midstream LP reports earnings on a quarterly cadence, consistent with standard practice for US-listed partnerships.
The partnership's fee-based structure means quarterly results tend to reflect throughput volumes and contract terms more than commodity prices. Investors should monitor volume trends across gathering, processing, and terminaling segments as leading indicators of financial performance.
For the most recent quarter's results and guidance, visit Hess Midstream LP's investor relations page directly.
HESM Price History
+111.2% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Hess Midstream LP?
Based on Hess Midstream LP's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
HESM Long-term Outlook
The UQS Growth pillar for HESM is rated Weak, pointing to limited near-term expansion catalysts within the current operational footprint. The Risk pillar is also Weak, which suggests investors should account for balance sheet and distribution-coverage considerations when forming a long-term view. That said, the fee-based model provides a degree of cash flow stability that can support the partnership through lower-growth periods. The Good Valuation rating indicates the market may already be pricing in these constraints.
Growth drivers
- Stable throughput volumes underpinned by long-term fee-based contracts
- Potential bolt-on acquisitions of additional midstream assets in the Bakken
- Ongoing producer activity in North Dakota supporting gathering demand
Key risks
- Weak Risk pillar signals elevated financial or operational risk factors
- Concentrated geographic exposure to the Williston Basin / Bakken region
- Limited growth optionality if upstream producers reduce drilling activity
HESM vs Peers
HESM operates in a midstream and energy infrastructure landscape that includes both tanker operators and pipeline companies.
Frontline is a large crude oil tanker operator focused on seaborne transport, contrasting with HESM's land-based pipeline and processing infrastructure.
South Bow operates liquids pipelines primarily in Canada and the US, offering a broader geographic footprint compared to HESM's Bakken-focused network.
The US-listed version of South Bow provides similar pipeline infrastructure exposure with a different capital structure and investor base than HESM.
Frequently Asked Questions
What does Hess Midstream LP do?
Hess Midstream LP gathers, processes, stores, and exports crude oil, natural gas, and natural gas liquids. It operates a network of pipelines, a gas processing plant, propane storage, and rail terminals — primarily in the Bakken region of North Dakota. The partnership earns fee-based revenue rather than taking direct commodity price exposure.
Does HESM pay dividends?
Yes, HESM pays a regular distribution to unitholders. Midstream partnerships like HESM are typically structured to return cash through consistent distributions, supported by fee-based contract revenues. Investors should review the Risk pillar profile and distribution coverage metrics before relying on yield as a primary investment thesis.
When does HESM report earnings?
Hess Midstream LP reports on a quarterly cadence, as is standard for US-listed partnerships. For the exact schedule and most recent results, check the investor relations section of the Hess Midstream website directly.
Is HESM a good stock to buy?
UQS Score rates HESM as Good overall. The Quality pillar is Strong and Valuation is rated Good, but Growth and Risk are both Weak. Whether HESM fits your portfolio depends on your income objectives, risk tolerance, and view on Bakken basin activity. The full pillar breakdown is available to UQS Pro members.
Is HESM overvalued?
The UQS Valuation pillar for HESM is rated Good, suggesting the unit price is not at a significant premium relative to its fundamentals. Midstream partnerships are often valued on distributable cash flow and yield metrics. Pro members can view the complete valuation analysis behind this rating.
How does HESM compare to its competitors?
HESM is a focused Bakken midstream operator with fee-based infrastructure, which differs from tanker operators like Frontline and broader pipeline companies like South Bow. Each carries distinct geographic exposure, capital structures, and risk profiles. The UQS Score comparison tool lets Pro members benchmark HESM against peers across all five pillars.
What is HESM's market cap bracket?
HESM is classified as a mid-cap partnership. Mid-cap energy infrastructure names can offer a balance between yield potential and growth optionality, though they may carry less financial flexibility than large-cap peers during periods of market stress.
Who founded Hess Midstream LP?
Hess Midstream LP was established in 2017 as a midstream vehicle affiliated with Hess Corporation, one of the major upstream operators in the Bakken. Detailed founding history and corporate structure information is publicly available through the company's SEC filings and investor relations materials.
Is HESM a long-term quality investment?
From a long-term quality standpoint, HESM's Strong Quality pillar reflects the durability of its fee-based cash flows. However, the Weak Growth and Risk pillars are meaningful considerations for long-horizon investors. UQS Score is designed to surface these trade-offs — Pro members can access the full multi-pillar view to inform their own assessment.
What is the main competitive advantage of Hess Midstream LP?
HESM's primary structural advantage is its fee-based contract model, which provides revenue visibility regardless of short-term commodity price movements. Its integrated network of gathering pipelines, processing facilities, and export terminals in the Bakken creates operational scale that would be difficult and capital-intensive for a new entrant to replicate.
What sector does HESM belong to?
HESM operates in the Energy sector, specifically within midstream infrastructure. Midstream companies sit between upstream producers and downstream refiners or consumers, earning fees for transporting and processing hydrocarbons rather than taking direct exposure to oil and gas prices.
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Pro Analysis
HESM — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 55.6 | 96.2 | 43.0 | 38.9 | 19.5 | 67.4 | -0.2 |
| May 21, 2026 | 55.8 | 96.4 | 43.0 | 38.9 | 19.5 | 68.3 | +0.2 |
| May 18, 2026 | 55.6 | 96.5 | 43.0 | 38.2 | 19.5 | 67.7 | -0.4 |
| May 13, 2026 | 56.0 | 96.7 | 43.0 | 37.9 | 19.5 | 70.6 | -0.1 |
| May 11, 2026 | 56.1 | 96.7 | 43.0 | 38.2 | 19.5 | 70.7 | -0.2 |
| May 9, 2026 | 56.3 | 96.7 | 43.0 | 38.2 | 19.5 | 72.0 | +0.4 |
| May 6, 2026 | 55.9 | 95.4 | 43.0 | 37.7 | 18.7 | 73.0 | -0.1 |
| May 3, 2026 | 56.0 | 95.4 | 43.0 | 37.3 | 18.7 | 73.9 | -0.1 |
| Apr 29, 2026 | 56.1 | 95.4 | 43.0 | 37.3 | 18.7 | 74.8 | -0.2 |
| Apr 26, 2026 | 56.3 | 95.4 | 43.0 | 37.7 | 18.7 | 75.9 | +0.1 |
HESM — Pillar Breakdown
Quality
— 96.2/100 (25%)Hess Midstream LP demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 38.9/100 (20%)Hess Midstream LP shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 19.5/100 (15%)Hess Midstream LP presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 67.5/100 (15%)Hess Midstream LP trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 43/100 (25%)Hess Midstream LP possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for HESM.
Score Composition
Financial Data
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How is the HESM UQS Score Calculated?
The UQS (Unified Quality Score) for Hess Midstream LP is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Hess Midstream LP's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Hess Midstream LP is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.