Hess Midstream LP Class A (HESM)

Several events have influenced Hess Midstream LP's stock price over the past six months. In May 2025, the company announced an accretive $200 million repurchase. In July 2025, the company released its 2024 Sustainability Report and appointed Jonathan C. Stein as CEO and Andy Walz as Chairman of the Board. In August 2025, Hess Midstream announced another accretive $100 million repurchase. In September 2025, the company provided updated financial and operational guidance, anticipating a decrease in Bakken rig activity by Chevron, leading to a downgrade by UBS and a Neutral rating by Goldman Sachs. In October 2025, Hess Midstream announced an increase in its quarterly cash distribution. In November 2025, the company reported its Q3 2025 earnings, surpassing EPS estimates but falling slightly short on revenue. Overall, the stock price experienced a decline of 10.98% from November 22, 2024, to November 21, 2025, and a 9.23% decrease over the last year.

Hess Midstream LP's business model mitigates direct demand seasonality through its 100% fee-based contracts, including minimum volume commitments (MVCs). While the contractual structure offers insulation, operational factors and upstream activity levels can indirectly affect Hess Midstream's volumes and outlook. Adverse weather conditions and maintenance activities impacted gas throughput guidance in the third and fourth quarters of 2025. An expected decrease in Bakken rig activity by Chevron is projected to cause oil throughput volumes to plateau in 2026.

Hess Midstream LP is a fee-based, growth-oriented midstream company in the oil and gas sector. It operates through three segments: Gathering, Processing and Storage, and Terminaling and Export. The Gathering segment includes natural gas, crude oil, and produced water gathering systems. The Processing and Storage segment comprises the Tioga Gas Plant and the Mentor Storage Terminal. The Terminaling and Export segment includes the Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, and connections to the Dakota Access Pipeline, as well as the Johnson's Corner Header System.

Hess Midstream LP's oil, gas, and produced water handling assets are primarily located in the Bakken and Three Forks Shale plays within the Williston Basin area of North Dakota. Additionally, its Mentor Storage Terminal is located in Mentor, Minnesota.

Hess Midstream LP has taken steps to enhance its brand reputation through its commitment to ESG practices, highlighted by the debut of its 2024 Sustainability Report. However, concerns about the financial health of Hess Midstream due to profitability issues faced by Hess Corporation in the Bakken region and significant insider sales could have negatively impacted the company's reputation.

Hess Midstream LP has a concentrated ownership structure, with institutional shareholders holding a significant majority of the stock. Major institutional owners include Alps Advisors Inc, Goldman Sachs Group Inc, Invesco Ltd., MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., and Tortoise Capital Advisors, L.l.c. Gip II Blue Holding LP is the largest individual shareholder. Following a corporate merger in July 2025, Chevron Corporation beneficially owns the former Hess Corporation interest. Global Infrastructure Partners (GIP) completed its exit from the company in May 2025.