Hess Midstream LP (HESM) Stock Price & How to Invest

Hess Midstream LP owns and operates midstream infrastructure in the Williston Basin (Bakken and Three Forks shale plays) in North Dakota, running three segments: gathering (oil, gas, and produced water pipelines), processing and storage (natural gas processing and NGL fractionation), and terminaling and export (crude and NGL loading and transport). It earns essentially all revenue from fixed, fee-based, long-term contracts with minimum-volume commitments, historically with Hess Corporation and now with Chevron following Chevron's July 2026 completion of its Hess acquisition. This structure insulates cash flow from short-term commodity-price swings, since HESM is paid for handling volumes rather than for the value of the barrels.

The investment picture is that of a yield-and-return-of-capital vehicle rather than a growth stock. Management guides to at least 5% annual distribution growth through 2028, has raised the payout for eight consecutive years, and returns excess free cash flow through buybacks (including recurring accretive repurchases from its sponsor). The trade-off is concentration: growth depends almost entirely on drilling intensity in a single basin served by a single anchor customer, so a decision like Chevron trimming Bakken rigs directly pressures volumes and guidance. Unlike diversified peers, HESM has little exposure to energy-export or energy-transition tailwinds.

HESM carries significant concentration risk: growth depends almost entirely on drilling activity in a single basin (the Bakken) served by a single anchor customer (now Chevron). Chevron's decision to cut Bakken rigs from three to two has already weighed on volume expectations and guidance. As a limited partnership it issues a Schedule K-1 and has tax and structural considerations that differ from a standard corporation. It also lacks the diversified export and energy-transition exposure of larger midstream peers, and rising leverage or a distribution policy change would directly affect the income thesis. A Morgan Stanley downgrade and sponsor-transition concerns have added to sentiment risk.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Hess Midstream LP's investor relations page or your broker.

• Revenue (TTM): ~$1.55B
• Q1 2026 revenue: ~$390M
• 2026 adj. EBITDA guidance: ~$1.225B-$1.275B
• 2026 net income guidance: ~$650M-$700M
• Market cap: ~$7.8B
• Dividend yield: ~8%
• Trailing P/E: ~13x
• EV / EBITDA: ~9.4x

HESM trades like an income-oriented midstream partnership, with a high single-digit distribution yield and mid-teens P/E supported by contracted, fee-based cash flow. Enterprise value sits near $11.6 billion, reflecting partnership leverage on top of the roughly $7.8 billion equity value. Valuation multiples are broadly in line with fee-based midstream peers, with the yield doing much of the work in the total-return case.

There are three common ways to get HESM exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so HESM sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where HESM fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

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HESM is a high-yield, single-basin midstream play whose appeal rests on contracted Bakken cash flows and shareholder returns, balanced against concentration in one customer (Chevron) and one shale play.

Whether HESM is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is HESM a buy?, and where the stock could go from here in the HESM stock forecast.

For income investors, whether HESM pays a dividend and how the payout looks is covered in does HESM pay a dividend?