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Hess Midstream P - HESM STOCK NEWS

Welcome to our dedicated page for Hess Midstream P news (Ticker: HESM), a resource for investors and traders seeking the latest updates and insights on Hess Midstream P stock.

Overview of Hess Midstream Partners

Hess Midstream Partners (symbol: HESM) is a diversified operator in the midstream energy sector, focusing on processing natural gas, fractionating natural gas liquids (NGLs), and managing an array of asset operations. With a strong presence in natural gas processing, NGL fractionation, and midstream asset management, the company provides fee-based services for both its primary client, Hess, and various third-party customers. This comprehensive approach positions Hess Midstream as a key participant within the broader energy infrastructure landscape.

Business Operations and Model

The company’s business is structured around multiple segments that work synergistically to support its core operations. Its gathering segment includes natural gas gathering and compression, crude oil gathering, and the management of produced water gathering and disposal. These activities ensure that raw materials are efficiently collected and prepared for further processing, marking a critical foundation for its fee-based revenue model.

Processing, Storage and Terminaling

Hess Midstream Partners also places significant emphasis on processing and storage operations. The facility for processing natural gas and fractionating NGLs is central to its service offering, providing reliable and efficient operations that are essential for maintaining industry standards. In addition, its terminaling and exporting segment extends its service capabilities to include the loading and terminaling of crude oil, along with the storage and terminaling of propane, illustrating a well-rounded approach to midstream service provision.

Operational Excellence and Expertise

The company has developed extensive expertise in managing midstream assets, enabling it to support complex energy logistics and asset operations. Its fee-based service model reduces dependence on commodity price fluctuations and emphasizes operational efficiency and reliability. By focusing on core midstream services, Hess Midstream Partners has established a robust operational infrastructure designed to ensure safe, efficient, and compliant management of energy assets.

Market Position and Competitive Landscape

Within the competitive midstream energy landscape, Hess Midstream Partners is recognized for its dedication to service excellence and operational rigor. Rather than emphasizing speculative future performance, the company maintains a consistent business model built on diversified asset management and a focus on fee-based revenue streams. This strategic emphasis allows the company to navigate industry challenges with a clear, operationally driven approach that supports its long-term viability.

Key Operational Segments

  • Gathering: Involves the collection and compression of natural gas and crude oil along with associated produced water management.
  • Processing and Storage: Centers on the processing of natural gas and the fractionation of NGLs, coupled with robust storage solutions.
  • Terminaling and Exporting: Focuses on loading crude oil and NGLs, along with storing and terminaling propane.

Understanding the Midstream Infrastructure

This detailed exploration of Hess Midstream Partners underscores a strong focus on operational efficiency and comprehensive infrastructure management. Using a diversified set of assets, the company addresses key needs within the midstream sector, aligning with industry best practices and delivering consistent operations. The clear organization of its business segments also assists industry analysts and researchers in understanding the multifaceted nature of midstream services.

Investor and Industry Insights

For investors and industry professionals, understanding the intricacies of Hess Midstream Partners is crucial. The company’s operations, which combine gathering, processing, storage, and terminaling, contribute to a resilient business model that minimizes exposure to commodity price volatility. Each business segment is designed to add value through efficient, fee-based services that underpin the company’s market standing in the energy infrastructure domain.

Rhea-AI Summary
Hess Midstream LP (NYSE: HESM) has announced an underwritten public offering of 10,000,000 Class A shares by an affiliate of Global Infrastructure Partners. The Selling Shareholder plans to grant the underwriters a 30-day option to purchase up to 1,500,000 additional shares. HESM will not receive any proceeds from the sale. Citigroup is the bookrunning manager of the offering. The offering is being made through a prospectus supplement and accompanying base prospectus filed with the SEC.
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Hess Midstream LP (HESM) expects a 10% increase in throughput volumes in 2024, with net income of $670 - $720 million and Adjusted EBITDA of $1,125 - $1,175 million, representing a 12.5% increase compared with 2023. Long-term guidance includes annualized growth in gas and oil throughput volumes, with at least 10% growth in net income and Adjusted EBITDA in 2025 and 2026. The company also plans to prioritize financial strength and extend its long-term leverage target through 2026, with a Return of Capital framework targeting annual distribution per Class A share growth of at least 5% through 2026.
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Hess Midstream LP (HESM) reported a 24% increase in gas processing, 19% in oil terminaling, and 47% in water gathering throughput volumes. Net income was $152.8 million, with a 2.7% increase in quarterly cash distribution. Adjusted EBITDA was $264.1 million, and Adjusted Free Cash Flow was $146.6 million. The company completed a $100 million repurchase of Class B units and increased its distribution level per Class A share.
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Hess Midstream LP (NYSE: HESM) announced a 2.7% increase in the quarterly cash distribution per Class A share for the fourth quarter of 2023 compared to the third quarter. The company aims for at least 5% annual growth in distributions per Class A share through 2025. The Board of Directors prioritizes consistent return of capital to shareholders, utilizing excess adjusted free cash flow for further distribution level increases. The quarterly distribution of $0.6343 per Class A share will be payable on February 14, 2024, to shareholders of record as of February 8, 2024.
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Hess Midstream LP (HESM) to Hold Conference Call to Discuss Q4 2023 Earnings
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Hess Midstream LP (NYSE: HESM) to Present at UBS Global Energy & Utilities Winter Conference
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Hess Midstream LP (NYSE: HESM) Releases 2022 Sustainability Report
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Hess Midstream LP (NYSE: HESM) announced the repurchase of approximately $100 million of Class B units by its subsidiary, Hess Midstream Operations LP, from affiliates of Hess Corporation and Global Infrastructure Partners. The proposed unit repurchase transaction was unanimously approved by the Board of Directors, aiming to provide immediate accretion to shareholders and increase distributable cash flow per Class A share, supporting potential incremental distribution growth above the annual target of at least 5% through 2025.
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Hess Midstream LP reports Q3 2023 net income of $164.8 million, an increase compared to Q3 2022. Quarterly cash distribution increased by 2.7% compared to Q2 2023. Throughput volumes increased for gas gathering, gas processing, terminaling, and water gathering. Full-year 2023 guidance for net income and Adjusted EBITDA raised. Hess Midstream LP to be acquired by Chevron Corporation.
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Hess Midstream has announced a quarterly cash distribution of $0.6175 per Class A share, representing a 2.7% increase from the previous quarter. The company aims for at least 5% annual growth in distributions per share through 2025. Chevron is set to acquire Hess' 37.8% ownership in Hess Midstream.
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FAQ

What is the current stock price of Hess Midstream P (HESM)?

The current stock price of Hess Midstream P (HESM) is $37.43 as of April 22, 2025.

What is the market cap of Hess Midstream P (HESM)?

The market cap of Hess Midstream P (HESM) is approximately 4.3B.

What is the core business of Hess Midstream Partners?

Hess Midstream Partners focuses on operating, developing, and acquiring midstream assets, with key services in natural gas processing, NGL fractionation, and crude oil terminaling.

How does Hess Midstream generate revenue?

The company generates revenue through fee-based services across its gathering, processing, storage, and terminaling segments, supporting both Hess and third-party customers.

What are the main operating segments of the company?

The business is organized into three main segments: gathering (including natural gas and crude oil gathering), processing and storage, and terminaling and exporting services.

How does the gathering segment contribute to the company's operations?

The gathering segment plays a critical role by efficiently collecting and compressing natural gas and crude oil, while managing produced water, laying the foundation for further processing.

What types of fee-based services does the company offer?

Hess Midstream Partners offers fee-based services related to natural gas processing, NGL fractionation, crude oil loading, and terminaling, which support a stable revenue model.

How is Hess Midstream positioned within the midstream energy sector?

The company is recognized for its operational excellence and diversified asset management, enabling it to effectively serve both primary and third-party clients in the midstream energy market.

In what ways does the company ensure operational efficiency?

Operational efficiency is achieved through a well-integrated approach across multiple assets, including gathering, processing/storage, and terminaling, ensuring a streamlined service offering.

How does Hess Midstream Partners handle crude oil and natural gas liquids?

The company manages terminaling and exporting activities for crude oil and NGLs, utilizing its infrastructure for loading, storage, and efficient logistics across its asset network.
Hess Midstream P

NYSE:HESM

HESM Rankings

HESM Stock Data

4.31B
115.56M
1.01%
83.57%
3.7%
Oil & Gas Midstream
Crude Petroleum & Natural Gas
Link
United States
HOUSTON