Hess Midstream Partners (NYSE:HESM) Releases Earnings Results

Hess Midstream Partners (NYSE:HESM) announced its earnings results on Monday. The company reported $0.75 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.08, Briefing.com reports. Hess Midstream Partners had a net margin of 23.23% and a return on equity of 90.78%. The company had revenue of $399.00 million during the quarter, compared to the consensus estimate of $395.96 million. During the same period in the previous year, the firm posted $0.74 earnings per share. The company’s revenue was down 3.7% on a year-over-year basis.

Here are the key takeaways from Hess Midstream Partners’ conference call:

• Second-quarter results improved: Net income rose to $174 million from $158 million in Q1, while Adjusted EBITDA increased to $314 million from $300 million, helped by lower operating expenses and G&A allocations.
• Hess Midstream reiterated its 2026 Adjusted Free Cash Flow guidance of $910 million–$960 million, representing approximately 20% year-over-year growth at the midpoint, with about $280 million of excess cash flow available for distribution growth, share repurchases and debt reduction.
• Management expects throughput volumes to grow in the second half, supported by normal well timing, longer laterals and higher productivity, while additional third-party gas volumes could provide upside.
• Third-quarter Adjusted EBITDA is expected to be broadly flat at $310 million–$320 million as higher volumes and revenue offset increased operating expenses from deferred maintenance; Adjusted Free Cash Flow is expected to decline because of higher capital spending.
• Reaching the high end of full-year EBITDA guidance depends on favorable weather and strong maintenance execution, while weather interruptions or higher maintenance costs could push results toward the low end.

Hess Midstream Partners Trading Down 0.8%

NYSE HESM opened at $40.43 on Wednesday. Hess Midstream Partners has a 12 month low of $31.63 and a 12 month high of $43.24. The stock has a 50-day simple moving average of $38.78 and a 200 day simple moving average of $38.30. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 9.97. The company has a market capitalization of $8.34 billion, a PE ratio of 13.99 and a beta of 0.52.

Hess Midstream Partners Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Thursday, August 6th will be issued a $0.7888 dividend. This is a boost from Hess Midstream Partners’s previous quarterly dividend of $0.78. This represents a $3.16 dividend on an annualized basis and a yield of 7.8%. The ex-dividend date is Thursday, August 6th. Hess Midstream Partners’s dividend payout ratio is currently 107.96%.

Hedge Funds Weigh In On Hess Midstream Partners

Institutional investors have recently modified their holdings of the stock. Royal Bank of Canada raised its position in shares of Hess Midstream Partners by 33.7% in the 1st quarter. Royal Bank of Canada now owns 129,902 shares of the company’s stock valued at $5,494,000 after acquiring an additional 32,740 shares during the period. NewEdge Advisors LLC acquired a new stake in Hess Midstream Partners in the first quarter worth $235,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Hess Midstream Partners by 20.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 224,741 shares of the company’s stock worth $9,504,000 after purchasing an additional 37,794 shares during the period. Geode Capital Management LLC boosted its position in shares of Hess Midstream Partners by 21.6% during the second quarter. Geode Capital Management LLC now owns 5,778 shares of the company’s stock worth $223,000 after purchasing an additional 1,026 shares in the last quarter. Finally, Creative Planning boosted its position in shares of Hess Midstream Partners by 10.6% during the second quarter. Creative Planning now owns 8,596 shares of the company’s stock worth $331,000 after purchasing an additional 826 shares in the last quarter. 98.97% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Morgan Stanley restated an “underweight” rating and issued a $39.00 price objective on shares of Hess Midstream Partners in a research report on Tuesday, July 21st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Hess Midstream Partners in a research note on Wednesday, June 24th. Finally, The Goldman Sachs Group lowered Hess Midstream Partners from a “neutral” rating to a “sell” rating and set a $32.00 price objective for the company. in a research report on Monday, April 20th. One equities research analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $38.86.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.

Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.