Hess Midstream

HESM

Market cap $4.29B

The government is taking stakes in key US companies. This isn't a bailout but a strategic shift to secure vital supply chains and maintain a competitive edge against global rivals. This new reality changes how we must invest. We should focus on companies central to America's big picture goals, not just quarterly earnings. My strategy targets the essential pillars of national success: Energy independence, AI infrastructure, a reshored industrial base, and a modernized defense apparatus.

Hess Midstream LP is upgraded from hold to buy, as valuation now prices in downside risks and offers an attractive entry point. HESM trades below historical P/E and EV/EBITDA averages, with fair value estimates suggesting limited but reasonable upside after the recent selloff. Despite oil price volatility and plateauing Bakken production, HESM's fee-based contracts, growing third-party revenue, strong cash flow, and natural gas growth prospects mitigate risks.

Wall Street left these 8.5% to 16.6% yields for dead. But their next dividend raises may show that these patients have a pulse—and send these prices higher before year-end.

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.

Hess Midstream LP shares plunged after Chevron reduced drilling, leading to lower growth guidance and a 10% stock drop. Despite muted growth, HESM's minimum volume commitments and strong contract structure secure its 8.3% distribution yield and support continued payout growth. HESM's capex flexibility and inflation-linked revenues ensure positive free cash flow and sustainable distributions, even in a weaker commodity environment.

Hess Midstream LP HESM on Thursday, cut its financial and operational outlook for the coming years, citing a slowdown in drilling activity by Chevron Corp CVX in the Bakken beginning in the fourth quarter of 2025.

HOUSTON--(BUSINESS WIRE)---- $HESM--Hess Midstream LP Announces Updated Guidance.

Every month, we screen for higher-yielding dividend-paying stocks, but also those that have a trend of generally growing dividends. Those include dividend payers that screen well based on quant grades that suggest the dividends are relatively safe. We have two new names making the top of the list this month, which we haven't discussed before, but they unfortunately appear to have some real concerns.

Hess Midstream continues to deliver strong financial results, with robust volume growth, high margins, and a reliable, inflation-linked contract structure. The recent Chevron acquisition of Hess increases the likelihood of a future buyout of HESM, potentially at a premium, but the timing remains uncertain. HESM offers a compelling 7.1% yield, with credible 5%+ annual dividend growth, underpinned by predictable cash flows and disciplined capital management.

HOUSTON--(BUSINESS WIRE)---- $HESM--Hess Midstream LP Announces Signing of Accretive $100 Million Repurchase From Sponsor and the Public.