Hess Midstream LP Class A (HESM)

Over the past six months, Hess Midstream reported strong operational performance for Q3 2025, executed a share repurchase, and increased its distribution. The company announced an increase in its distribution per share level in January 2026. Hess Midstream reported estimated results for Q4 2025 and filed its 2025 Annual Report on Form 10-K. Hess Midstream announced the signing of an accretive repurchase from its sponsor and the public. Leadership changes occurred following the Chevron and Hess merger, leading to the renewal of long-term contracts with Chevron through 2033. As of March 25, 2026, HESM's stock price was $39.75, with a six-month gain of 25.67%.

Demand seasonality for Hess Midstream LP's products and services is influenced by the underlying production volumes of crude oil, natural gas, and produced water in the Bakken and Three Forks Shale plays. Factors that could introduce some seasonality or variability include weather conditions, maintenance schedules, and upstream activity levels. However, the long-term, fee-based contracts with MVCs provide a stable revenue stream regardless of minor seasonal dips in volumes.

Hess Midstream LP is a fee-based, growth-oriented limited partnership in the oil and gas midstream industry. It owns, operates, develops, and acquires midstream assets, providing services to Hess Corporation and third-party customers. The company's business is structured around gathering, processing and storage, and terminaling and export. Hess Midstream generates revenue by charging fees for services such as gathering, compressing, and processing natural gas, fractionating NGLs, gathering, terminaling, loading, and transporting crude oil and NGLs, storing and terminaling propane, and gathering and disposing of produced water. The company's business model relies on long-term, fee-based contracts, often with minimum volume commitments, which helps to stabilize revenues and reduce exposure to commodity price fluctuations.

Hess Midstream LP's assets are primarily concentrated in the Bakken and Three Forks Shale plays within the Williston Basin area of North Dakota. The company's operations also extend to Mentor, Minnesota, where its Mentor Storage Terminal is located.

Hess Midstream LP's brand reputation appears stable, supported by consistent operational performance and commitment to shareholder returns. The company has consistently delivered strong financial results, increased distributions and share repurchases, renewed strategic contracts with Chevron, and diversified into third-party business. There is no readily available information suggesting significant negative events that have adversely affected Hess Midstream LP's brand reputation in the past year.

Hess Midstream LP has significant institutional ownership. As of March 24, 2026, institutions held approximately 95.5% of the shares, while the general public held about 3.95%, and individual insiders held around 0.172%. Major institutional owners include ALPS Advisors Inc., Goldman Sachs Group Inc., Invesco Ltd., MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., Tortoise Capital Advisors, L.l.c., Blackstone Group Inc., Adage Capital Partners Gp, L.l.c., TD Asset Management Inc., Epoch Investment Partners, Inc., and Neuberger Berman Group LLC.