Hess Midstream(NYSE) HESM

Hess Midstream operates pipes and plants for oil and gas. It moves and stores energy products in North Dakota. This helps big energy companies get fuel to their customers.

Where the Fuel Flows

• Gathering Services: Pipes and stations that collect gas, oil, and water from wells; accounts for 52% of revenue.
• Processing and Storage: Plants that clean natural gas and hold propane for later use; accounts for 38% of revenue.
• Terminaling and Export: Hubs and rail cars that load fuel for long-distance transport; accounts for 10% of revenue.

Strategic Moves and Buybacks

• Completed a multi-year project to expand gas compression, which increases pipeline pressure, in 2026.
• Placed a new compressor station in service providing 50 million cubic feet of gas capacity per day.
• Repurchased $18 million in units from its primary sponsor, Chevron, in March 2026.
• Settled a $42 million accelerated share repurchase program with a financial institution in 2026.

Reliable Pipelines and Protected Income

Hess Midstream uses long-term contracts that include guaranteed minimum payments to ensure steady income regardless of price swings. The company handles logistics for Chevron, which provided 96% of its total revenue in the first quarter of 2026.

The Recent Financial Scorecard

• Total revenues reached $390.1 million in Q1 2026, up 2.1% year-over-year.
• Net income attributable to the company rose to $87.6 million in Q1 2026, up 22.3% from Q1 2025.
• Net cash from operating activities hit $253.3 million in Q1 2026, up 25.1% from the prior year.
• Free cash flow grew to $224.5 million in Q1 2026, a 43.1% increase over Q1 2025.

A Steady Evolution

Hess Midstream has shifted from building new infrastructure to managing a mature network of energy assets. Its business model focuses on generating cash and returning value to owners through buybacks and distributions.