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, 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. Trailing revenue is about $1.61 billion and trailing net income about $375 million (as of October 2026); second-quarter 2026 revenue was ~$399 million and EPS of $0.75 beat the ~$0.66 estimate.

The story changed on October 7, 2026. Chevron agreed to transfer its entire ownership interest in HESM, including the general partner, making it a fully publicly owned company, while HESM acquires Chevron's DJ Basin midstream assets (crude, gas and water gathering, the Black Diamond system and a 20% stake in the Saddlehorn crude pipeline) for modified Bakken contracts plus a $200 million cash payment funded on its revolver. The Bakken contracts were extended to 2045 but with lower rates from 2027 through 2033, and the old volume commitments were replaced by a single basin-wide minimum revenue commitment set on a two-rig program. Preliminary 2027 guidance calls for adjusted EBITDA of about $900 million (versus roughly $1.23 billion trailing), the distribution held at the Q4 2026 level through 2027 instead of growing 5% a year, and leverage of 3.75-4.0x. The units dropped about 16% on the announcement and are down roughly 24% over the past month. Closing is expected at the end of 2026, and HESM remains an Up-C structure under CEO Jonathan Stein.

HESM still carries significant concentration risk: Bakken volumes depend on Chevron's drilling activity, and Chevron's move from three rigs to two is expected to reduce volumes about 5% through 2027. The October 2026 restructuring cuts Bakken rates from 2027, drops preliminary 2027 adjusted EBITDA to about $900 million, and lifts leverage to 3.75-4.0x against a long-term target of 3.5-3.75x, with debt of about $3.7 billion and very little cash. Distribution growth is paused through 2027, and coverage after distributions is thinner, so analysts flag leverage and payout coverage as watchpoints; the consensus rating is underperform with an average target near $33.67. The deal still has to close (expected end of 2026), integrating the DJ Basin assets is new execution risk, and the units trade near the bottom of their 52-week range (~$29.85-41.44). As a partnership with an Up-C structure it has tax and structural considerations that differ from a standard corporation, and it lacks the diversified export and energy-transition exposure of larger midstream peers.

6 analysts publish price targets on HESM, averaging $33.67 against a $30.66 price as of October 2026, or +9.8%. The published targets run from $30.00 to $40.00, a narrow spread, and the ratings split 0 buy, 4 hold, 3 sell. Over the last six months there have been 0 raises and 4 cuts 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, 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 still carries significant concentration risk: Bakken volumes depend on Chevron's drilling activity, and Chevron's move from three rigs to two is expected to reduce volumes about 5% through 2027. The most pessimistic target, $30.00, 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): ~$1.61B
• Q2 2026 revenue: ~$399M (-3.7% YoY)
• Net income (TTM): ~$375M
• Preliminary 2027 adj. EBITDA: ~$900M
• Market cap: ~$6.3B
• Distribution yield (trailing): ~10%
• P/E (trailing / forward): ~10.6x / ~10.8x
• EV / EBITDA (trailing): ~6.1x

After the October 2026 sell-off, HESM trades at about 10.6 times trailing earnings and roughly 6 times trailing EBITDA, with a trailing yield near 10%, cheaper than before the Chevron deal was announced. Those trailing figures overstate future earnings power: preliminary 2027 adjusted EBITDA of about $900 million is well below the ~$1.23 billion trailing figure, and analysts' 2027 revenue estimate is about $1.45 billion. The market is pricing lower Bakken fees, a paused distribution and higher leverage against contracts that now run to 2045.

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 midstream play whose appeal rests on contracted cash flows and distributions, but the October 2026 Chevron restructuring lowers 2027 earnings power, freezes distribution growth through 2027 and raises leverage, in exchange for longer contracts, a second basin and full independence from its sponsor.

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.