HESM
Hess Midstream LP
HESM's fundamentals are mixed, but it looks cheap: trading at 10x earnings, below its usual 15x. Analysts expect earnings growth, though they disagree widely on how much.
HESM Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Strong | |
| Stable |
HESM's profitability and cash flow are currently strong, and its revenue and balance sheet are stable.
HESM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 10x | $30.58 | — |
| Forward | 10x | $30.58 | — |
| Cheap | 14x | $39.83 | +30% |
| Fair | 15x | $45.16 | +48% |
| Expensive | 17x | $50.12 | +64% |
Historical ranges are pointers, not guarantees.
HESM's PE is in its cheap range at 10.5x. On analysts' estimates for next year's earnings, today's price would be 10.5x.
HESM Forward outlook
| Metric | Outlook |
|---|---|
| Stable | |
| Growth | |
| Decline | |
| Strongly improving | |
| Limited | |
| Low |
Analysts expect HESM's earnings to grow and its profitability to improve, but its revenue to decline. However, they disagree widely on these estimates.
HESM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $2.91 | -0.2% |
| Q3 2026 | $2.92 | +3.5% |
| Q2 2026 | $2.90 | +7.4% |
| Q1 2026 | $2.89 | +13% |
| Q4 2025 | $2.86 | +15% |
| Q3 2025 | $2.82 | +20% |
| Q2 2025 | $2.70 | +18% |
| Q1 2025 | $2.55 | +16% |
| Q4 2024 | $2.49 | +20% |
HESM's earnings per share have climbed steadily: $2.92 over the past year, up 3.5% from the year before, and higher year over year for 12 quarters in a row.
HESM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $410.1M | -2.6% |
| Q2 2026 | $399M | -3.7% |
| Q1 2026 | $390.1M | +2.1% |
| Q4 2025 | $404.2M | +2.1% |
| Q3 2025 | $420.9M | +11% |
| Q2 2025 | $414.2M | +13% |
| Q1 2025 | $382M | +7.4% |
| Q4 2024 | $395.9M | +11% |
HESM's revenue grew through 2024 and has held roughly level since: $410M last quarter, down 2.6% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 64% | +2.5 points |
| Q2 2026 | 63% | +0.6 points |
| Q1 2026 | 61% | -1.1 points |
| Q4 2025 | 62% | +0.9 points |
| Q3 2025 | 62% | +0.3 points |
| Q2 2025 | 63% | +2 points |
| Q1 2025 | 62% | -0.3 points |
| Q4 2024 | 61% | +2.5 points |
HESM's operating margin was 64% last quarter, up 2.5 points from the same quarter a year ago, near the top of its range since 2019.
HESM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $242.2M | +35% |
| Q2 2026 | $255.5M | +20% |
| Q1 2026 | $224.5M | +43% |
| Q4 2025 | $178.9M | +9.5% |
| Q3 2025 | $178.9M | +35% |
| Q2 2025 | $213.5M | +2.8% |
| Q1 2025 | $156.9M | +20% |
| Q4 2024 | $163.4M | -11% |
HESM's free cash flow has been positive every quarter for six years: $901M over the past year, up 26% from the year before.
HESM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | -- |
| 1 year | -0.8% | -1M shares |
| 3 years | +88% | +60M shares |
| 5 years | +281% | +94.7M shares |
| Available history | +615% | +110M shares |
HESM has 128M diluted shares, down 0.8% from a year ago, with $60M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | — |
| Q1 2026 | $60M |
| Q4 2025 | — |
| Q3 2025 | $100M |
| Q2 2025 | $200M |
| Q1 2025 | $100M |
| Q4 2024 | — |
HESM spent $60M buying back its own shares over the past year, down 85% from the year before.
HESM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 2.9x | Moderate |
| Q2 2026 | 3.0x | Elevated |
| Q1 2026 | 3.1x | Elevated |
| Q4 2025 | 3.1x | Elevated |
| Q3 2025 | 3.1x | Elevated |
| Q2 2025 | 3.2x | Elevated |
| Q1 2025 | 3.1x | Elevated |
| Q4 2024 | 3.1x | Elevated |
HESM's net debt is about 2.9 years of its operating earnings (EBITDA), down from 3.1 years a year ago.
HESM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 32.8 | Neutral |
| Stochastic | 13.2 | Oversold |
HESM's weekly RSI is 33 (neutral) and its Stochastic is 13 (oversold).
HESM PE vs Energy Sector
| Metric | HESM | Sector median | Relative |
|---|---|---|---|
| PE | 10x | 13x | 20% below |
| PE % | 0 | 61 | 61 pts below |
HESM is trading at 10x earnings, a 20% discount to the Energy sector's median of 13x.
HESM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $32.9 | 6.9% below |
| 20 week MA | $37.0 | 17% below |
| 50 week MA | $37.2 | 18% below |
| 100 week MA | $37.7 | 19% below |
| 200 week MA | $35.1 | 13% below |
HESM is in a downtrend: it's below all five of its weekly moving averages, and 13% below its 200-week average.
HESM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $22.4 | $20.3 | -9.6% |
| 2021 | $20.3 | $26.9 | +33% |
| 2022 | $26.9 | $29.7 | +10% |
| 2023 | $29.7 | $31.6 | +6.6% |
| 2024 | $31.6 | $36.5 | +16% |
| 2025 | $36.5 | $34.4 | -5.9% |
| 2026 YTD | $34.4 | $30.6 | -11% |
HESM has finished higher in four of the last six years. It's down 11% so far in 2026.