Hess Midstream Partners (NYSE:HESM) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Hess Midstream Partners (NYSE:HESM) announced its earnings results on Monday. The company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.67 by $0.08, Briefing.com reports. Hess Midstream Partners had a net margin of 22.64% and a return on equity of 84.47%. The company had revenue of $399.00 million during the quarter, compared to the consensus estimate of $395.96 million. During the same quarter in the prior year, the company posted $0.74 earnings per share. The firm’s revenue for the quarter 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 Stock Performance

Shares of HESM opened at $40.79 on Tuesday. Hess Midstream Partners has a 1 year low of $31.63 and a 1 year high of $43.43. The company has a debt-to-equity ratio of 9.97, a current ratio of 0.92 and a quick ratio of 0.92. The stock’s fifty day moving average price is $38.76 and its two-hundred day moving average price is $38.26. The firm has a market cap of $8.41 billion, a PE ratio of 14.11 and a beta of 0.52.

Hess Midstream Partners Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Thursday, August 6th will be given a $0.7888 dividend. This is an increase 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 7.7%. The ex-dividend date of this dividend is Thursday, August 6th. Hess Midstream Partners’s dividend payout ratio (DPR) is 107.96%.

Analyst Ratings Changes

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

Institutional Investors Weigh In On Hess Midstream Partners

Institutional investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. increased its position in Hess Midstream Partners by 14.3% during the 2nd quarter. Geneos Wealth Management Inc. now owns 2,400 shares of the company’s stock valued at $92,000 after purchasing an additional 300 shares during the period. Cetera Investment Advisers lifted its position in shares of Hess Midstream Partners by 0.8% in the 4th quarter. Cetera Investment Advisers now owns 44,931 shares of the company’s stock worth $1,550,000 after purchasing an additional 378 shares during the period. Creative Planning lifted its position in shares of Hess Midstream Partners by 4.7% in the 3rd quarter. Creative Planning now owns 9,000 shares of the company’s stock worth $311,000 after purchasing an additional 404 shares during the period. Commonwealth Equity Services LLC boosted its stake in shares of Hess Midstream Partners by 6.4% during the 4th quarter. Commonwealth Equity Services LLC now owns 6,761 shares of the company’s stock valued at $233,000 after purchasing an additional 409 shares in the last quarter. Finally, Pinnacle Holdings LLC boosted its stake in shares of Hess Midstream Partners by 0.6% during the 4th quarter. Pinnacle Holdings LLC now owns 89,625 shares of the company’s stock valued at $3,092,000 after purchasing an additional 529 shares in the last quarter. 98.97% of the stock is owned by hedge funds and other institutional investors.

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.