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.

6 analysts publish price targets on HESM, averaging $37.50 against a $40.23 price as of September 2026, or -6.8%. The published targets run from $33.00 to $40.00, a narrow spread, and the ratings split 0 buy, 5 hold, 2 sell. Over the last six months there have been 0 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full HESM forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Hess Midstream LP. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Fee-based, contracted cash flow. Nearly all revenue comes from long-term, fixed-fee contracts with minimum-volume commitments, which smooths cash flow across commodity cycles. The most optimistic published target, $40.00, assumes this works close to its best case.

The case against. 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). The most pessimistic target, $33.00, is roughly what HESM is worth if this bites instead.

Read the full bull and bear case on HESM, including what would have to change to break either one. Walnut is not an investment adviser.

No. Hess Midstream LP (HESM) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

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.

If you want HESM exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

Other names that sit close to HESM: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

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 (AMLP), which spreads the position across many companies. Or build it into a focused thematic portfolio, so HESM sits alongside other stocks that express the same thesis.

Walnut takes the portfolio 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.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

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 or a sell?, 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? And to weigh HESM against a peer, read the full side-by-side comparisons: HESM vs EPD and HESM vs WMB.