Hess Midstream LP Class A Representing Limited Partner Interests (HESM)

FairStock Score: 74/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach midstream businesses as toll roads: I want fees, not commodity bets. Hess Midstream owns gathering, processing, storage, terminaling and export assets, including about 1,430 miles of gathering lines, and provides fee-based services to its sponsor and third parties. In fiscal Q2 2026, the quarter ended 2026-06-30, filed revenue was $397.7M and net income was $96.4M, a 24.24% net margin. That profit rose from fiscal Q2 2025, when revenue was $413.5M and net income was $90.3M, so revenue slipped while profit improved. For FY2025, filed net income was $352.9M on $1.6B revenue, up from $223.1M on $1.5B in FY2024. FairStock's calculations at the 2026-10-13 close of $31.20 show a P/E of 10.76, EV/EBITDA of 6.18, FCF yield of 20.9%, and distribution yield of 7.69%. Those are appealing if the fee streams are durable, and the 0.50 beta and Piotroski 8/9 add comfort. But Graham would balk: the Graham Number is $16.18 versus the $31.20 price, a -92.83% margin of safety, and P/B is 7.78. The Altman Z-Score of 0.90 also warrants caution. I see a cash-generative stalwart, categorized as STALWART by FairStock with 71.2% annual profit growth over five years, but not a margin-of-safety bargain. The investment case rests on stable fees and continued profit growth rather than asset protection.

In plain English: Hess Midstream moves and processes oil and natural gas through pipelines, storage, and export facilities, mostly earning fees rather than betting on energy prices. The business looks profitable and cash-rich: it earned $96.4 million in the quarter ended June 30, 2026, and pays a high income stream to owners. At $31.20 on 2026-10-13, the shares look fair-to-expensive on asset value but much cheaper on cash flow, so the key question is whether those cash flows hold up.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer