Hess Midstream LP (HESM) Stock

Hess Midstream LP (HESM) is a Energy stock trading at $40.66 (as of 2026-07-24), with a market capitalization of $5.26B and a trailing P/E of 10.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Hess Midstream LP owns, develops, operates, and acquires midstream assets through three segments: Gathering; Processing and Storage; and Terminaling and Export. Its assets include natural gas and crude oil gathering systems, processing and storage facilities (including Tioga Gas Plant and Mentor Storage Terminal), and terminaling and export infrastructure such as rail and related facilities.

Understand Hess Midstream LP: how it makes money

Hess Midstream LP owns and operates midstream infrastructure for natural gas and crude oil, including gathering, processing and storage, and terminaling and export, and it makes money through affiliate services with some revenues classified as pass-through and some from third-party services.

Revenues Excluding Pass-Through Revenues are the bulk of the quarter (0.39B of 0.4B), suggesting underlying results primarily track core midstream fees rather than pass-through amounts, and those core fees depend on throughput across gathering, processing, and terminaling.

Business quality (Solid): The company shows very strong operating profitability in the latest quarter, but key operating outcomes appear highly linked to throughput movements and affiliate-linked services, with part of revenue classified as pass-through and a reported terminaling throughput decrease.

Valuation: At 13× earnings, HESM trades 26% below the Petroleum & Natural Gas average (17×). Note: one-time items can distort reported P/E.

Bull case

  • Owned midstream footprint supports throughput: The company operates natural gas gathering and compression pipelines (about 1,350 miles) and has natural gas gathering capacity of about 450 million cubic feet per day, plus crude oil gathering systems (about 550 miles).
  • Core revenue dominates over pass-through: In the latest quarter, Revenues Excluding Pass-Through Revenues were 0.39B, versus Pass-Through Revenues of 0.03B, with operating margin reported at 61.0%.
  • Operational activity spans multiple midstream steps: The latest operating metrics include gas processing throughput (444,000,000 Thousand Cubic Feet of Natural Gas per Day), crude terminaling throughput (119,000 Thousand Barrels per Day), and water gathering throughput (115,000 Thousand Barrels per Day).

Bear case

  • Terminaling volumes declined: The latest quarter shows a Throughput Volume Decrease for Terminaling of -5.0%.
  • Limited third-party exposure relative to affiliate-linked business: Third-Party Services Revenue was 0.02B, compared with Affiliate Services Revenue of 0.37B, and third-party volume shares were 10% for gas volumes and 15% for oil volumes.
  • Pass-through revenue may not drive underlying earnings: A portion of revenue is classified as Pass-Through Revenues (0.03B), so not all top-line movements necessarily reflect the underlying midstream fee component.
Valuation — source: SEC EDGAR (first-party)
Price$40.66
Market Cap$5.26B
P/E Ratio10.0
EV / EBITDA7.4
Price / Sales3.27
FCF Yield24.7%
DCF Value (model)$167.97
DCF Upside vs Price313.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.62B
Net Margin21.8%
Revenue Growth (YoY)8.4%
FCF Growth (YoY)14.8%
Valuation vs Sector & Industry
Stock P/E10.0
Sector P/E (Energy)19.0
Industry P/E (Petroleum & Natural Gas)19.0
vs Sector-47.5%
vs Industry-47.3%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderALPS ADVISORS INC ($1.20B)
Institutional Holders Tracked10
Company
SectorEnergy
IndustryPetroleum & Natural Gas
CEOJonathan C. Stein
Employees176
CountryUS
IPO Date2017-04-05

Related Companies (Business model: Exploration & Production (Upstream Oil & Gas); 8 closest by market cap; US-domiciled)

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  • Murphy Oil Corporation (MUR)
  • CNX Resources Corporation (CNX)
  • California Resources Corporation (CRC)
  • Magnolia Oil & Gas Corporation (MGY)
  • Comstock Resources, Inc. (CRK)
  • Par Pacific Holdings, Inc. (PARR)
  • Crescent Energy Company (CRGY)
HESM earnings history · HESM institutional & insider holders · HESM KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.