- Hess Midstream Partners (HESM) Reports Q1 Earnings: What Key Metrics Have to Say
May 14, 2026
For the quarter ended March 2026, Hess Midstream Partners LP (HESM) reported revenue of $390.1 million, up 2.1% over the same period last year. EPS came in at $0.68, compared to $0.65 in the year-ago quarter.
The reported revenue represents a surprise of +2.7% over the Zacks Consensus Estimate of $379.84 million. With the consensus EPS estimate being $0.65, the EPS surprise was +4.09%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hess Midstream Partners performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Volumes - Crude oil gathering: 110.00 MBbl/d compared to the 117.92 MBbl/d average estimate based on two analysts. Throughput Volumes - Gas processing: 430.00 MMcf/d compared to the 413.19 MMcf/d average estimate based on two analysts. Throughput Volumes - Gas gathering: 438.00 MMcf/d versus the two-analyst average estimate of 433.96 MMcf/d. Throughput Volumes - NGL loading: 15.00 MBbl/d compared to the 14.43 MBbl/d average estimate based on two analysts. Throughput Volumes - Water gathering: 115.00 MBbl/d versus 125.17 MBbl/d estimated by two analysts on average. Throughput Volumes - Crude oil terminaling: 119.00 MBbl/d versus the two-analyst average estimate of 125.40 MBbl/d. Revenue- Gathering: $204.1 million compared to the $200.73 million average estimate based on two analysts. Revenue- Terminaling and Export: $37.6 million versus $31.69 million estimated by two analysts on average. Revenue- Processing and Storage: $148.4 million compared to the $157.23 million average estimate based on two analysts. Adjusted EBITDA- Terminaling and Export: $30.7 million compared to the $23.62 million average estimate based on two analysts. Adjusted EBITDA- Gathering: $150.3 million versus $148.11 million estimated by two analysts on average.
View all Key Company Metrics for Hess Midstream Partners here>>>
Shares of Hess Midstream Partners have returned +4.2% over the past month versus the Zacks S&P 500 composite's +8.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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- Hess Midstream Partners (HESM) Reports Q1 Earnings: What Key Metrics Have to Say
May 14, 2026 · zacks.com
While the top- and bottom-line numbers for Hess Midstream Partners (HESM) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
- Wall Street's Most Accurate Analysts Spotlight On 3 Energy Stocks With Over 7% Dividend Yields
May 13, 2026
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.
Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the energy sector.
Delek Logistics Partners LP (NYSE:DKL)
Dividend Yield: 8.69% Mizuho analyst Gabriel Moreen maintained a Neutral rating and raised the price target from $45 to $52 on April 21, 2026. This analyst has an accuracy rate of 79% Citigroup analyst Douglas Irwin downgraded the stock from Buy to Neutral and raised the price target from $47 to $52 on March 6, 2026. This analyst has an accuracy rate of 70%. Recent News: On May 12, Delek Logistics Partners, LP and Delek Logistics Finance Corp. announced results of tender offer for any and all of their outstanding 7.125% senior notes due 2028. Benzinga Pro’s real-time newsfeed alerted to latest DKL news.
Hess Midstream LP (NYSE:HESM)
Dividend Yield: 7.78% Morgan Stanley analyst Robert Kadmaintained an Equal-Weight rating and cut the price target from $42 to $38 on May 12, 2026. This analyst has an accuracy rate of 69%. Goldman Sachs analyst John MacKay downgraded the stock from Neutral to Sell with a price target of $32 on April 20, 2026. This analyst has an accuracy rate of 71% Recent News: On May 4, Hess Midstream posted upbeat quarterly earnings. Benzinga Pro's real-time newsfeed alerted to latest HESM news
MPLX LP (NYSE:MPLX)
Dividend Yield: 7.92% Wells Fargo analyst Michael Blum maintained an Overweight rating and cut the price target from $63 to $61 on May 7, 2026. This analyst has an accuracy rate of 71% Barclays analyst Theresa Chen maintained an Overweight rating and lowered the price target from $59 to $58 on May 6, 2026. This analyst has an accuracy rate of 77%. Recent News: On May 5, MPLX posted downbeat quarterly earnings. Benzinga Pro’s real-time newsfeed alerted to latest MPLX news
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This article Wall Street's Most Accurate Analysts Spotlight On 3 Energy Stocks With Over 7% Dividend Yields originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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- Hess Midstream Partners (HESM) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
May 4, 2026
Hess Midstream Partners LP (HESM) reported $390.1 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 2.1%. EPS of $0.68 for the same period compares to $0.65 a year ago.
The reported revenue represents a surprise of +2.7% over the Zacks Consensus Estimate of $379.84 million. With the consensus EPS estimate being $0.65, the EPS surprise was +4.09%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Hess Midstream Partners performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Volumes - Gas gathering: 438.00 MMcf/d compared to the 433.96 MMcf/d average estimate based on two analysts. Throughput Volumes - Crude oil gathering: 110.00 MBbl/d compared to the 117.92 MBbl/d average estimate based on two analysts. Throughput Volumes - Water gathering: 115.00 MBbl/d versus the two-analyst average estimate of 125.17 MBbl/d. Throughput Volumes - Crude oil terminaling: 119.00 MBbl/d versus the two-analyst average estimate of 125.40 MBbl/d. Throughput Volumes - NGL loading: 15.00 MBbl/d versus the two-analyst average estimate of 14.43 MBbl/d. Throughput Volumes - Gas processing: 430.00 MMcf/d compared to the 413.19 MMcf/d average estimate based on two analysts. Revenue- Gathering: $204.1 million versus $200.73 million estimated by two analysts on average. Revenue- Terminaling and Export: $37.6 million versus $31.69 million estimated by two analysts on average. Revenue- Processing and Storage: $148.4 million versus $157.23 million estimated by two analysts on average.
View all Key Company Metrics for Hess Midstream Partners here>>>
Shares of Hess Midstream Partners have returned -1.8% over the past month versus the Zacks S&P 500 composite's +10% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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- Hess Midstream (HESM) Valuation Check As Lower 2026 Capex And Higher Free Cash Flow Guide Investor Expectations
May 4, 2026
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Hess Midstream (HESM) has drawn investor attention after reporting first quarter 2026 results that met expectations despite severe winter weather and pairing that update with lower 2026 capital spending along with higher adjusted free cash flow guidance.
See our latest analysis for Hess Midstream.
Hess Midstream’s share price is at US$38.12 after a 2.5% one-day pullback. However, the 90-day share price return of 8.4% and 12.1% one-year total shareholder return suggest momentum has been building as investors weigh the lower capital plans, higher adjusted free cash flow outlook and recent distribution increase.
If you are comparing Hess Midstream with other income and infrastructure ideas, this could be a good moment to widen the search and check out 36 power grid technology and infrastructure stocks
So with the stock only slightly above the average analyst price target but trading at a reported intrinsic discount of around 56%, are you looking at a genuine value opportunity here, or is the market already pricing in future growth?
Most Popular Narrative: 2% Overvalued
With Hess Midstream’s last close at $38.12 against a widely followed fair value estimate of $37.50, the narrative sees the current price as slightly ahead of its model while still hinging on long dated cash flow assumptions and modest growth.
Multi-year minimum volume contracts with Hess Corp (now under Chevron), providing highly predictable, inflation-resistant fee-based revenue streams through the late 2030s, which supports stable adjusted EBITDA and consistent dividend/distribution growth.
Read the complete narrative.Read the complete narrative.
Curious what underpins that small gap between price and fair value? The narrative leans heavily on measured revenue growth, rising margins and a richer future earnings multiple. One set of long term contract assumptions sits at the core. Another revolves around where profits could land a few years out. The full story combines those pieces into a single valuation roadmap.
Result: Fair Value of $37.50 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to watch for any pullback in Chevron backed Bakken activity or tighter environmental rules that could pressure throughput, margins, and earnings assumptions.
Find out about the key risks to this Hess Midstream narrative.
Another Way To Look At Valuation
That analyst fair value of $37.50 suggests Hess Midstream is about 2% overvalued on the headline target, but the current P/E of 14x tells a different story against a fair ratio of 22.6x and a peer average of 38.4x. Is the risk here overpaying, or underestimating what the market could move toward?
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See what the numbers say about this price — find out in our valuation breakdown.NYSE:HESM P/E Ratio as at May 2026
Next Steps
With that mix of optimism and caution in mind, take a moment to review the numbers, challenge the assumptions, and weigh the 4 key rewards and 2 important warning signs.
Looking for more investment ideas?
If you stop with just one stock, you risk missing other opportunities. Take a few minutes to scan wider, compare options, and sharpen your watchlist.
Spot potential mispriced opportunities early by reviewing 49 high quality undervalued stocks before the crowd fully catches on. Strengthen your income stream with companies that show staying power through the 13 dividend fortresses. Prioritize resilience and sleep better at night by filtering for 72 resilient stocks with low risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include HESM.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Sector Update: Energy Stocks Rise Late Afternoon
May 4, 2026
Energy stocks were higher late Monday afternoon, with the NYSE Energy Sector Index increasing 0.6% a
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- Sector Update: Energy Stocks Higher Monday Afternoon
May 4, 2026
Energy stocks were higher Monday afternoon, with the NYSE Energy Sector Index increasing 0.7% and th
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- Hess Midstream Partners (HESM) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
May 4, 2026 · zacks.com
Although the revenue and EPS for Hess Midstream Partners (HESM) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
- Hess Midstream LP Q1 2026 Earnings Call Summary
May 4, 2026
Hess Midstream LP Q1 2026 Earnings Call Summary - Moby
Strategic Execution and Operational Drivers
Performance attribution for the quarter was impacted by severe winter weather in January and February, partially offset by a volume recovery in March and the capture of additional third-party gas. Management is right-sizing capital expenditures, reducing 2026 guidance by one-third to approximately $105 million due to the completion of major infrastructure and upstream efficiencies. The shift by Chevron toward longer laterals is a primary driver of capital efficiency, as it reduces the number of required well connects while improving well economics. Strategic positioning remains anchored by a fixed-fee contract structure and Minimum Volume Commitments (MVCs) through 2028, providing significant downside protection. Operational leverage remains high with a gross adjusted EBITDA margin of approximately 83%, significantly exceeding the company's 75% long-term target. The company successfully utilized its system optionality to capture third-party volumes from other midstream providers facing operational challenges.
Outlook and Strategic Assumptions
Adjusted free cash flow guidance for 2026 was increased to $910 million–$960 million, a 20% year-over-year increase at the midpoint, driven by lower CapEx and deferred cash taxes. Management expects a second-half EBITDA increase of approximately 8% compared to the first half, supported by volume growth as new well completions come online. The company does not expect to pay material cash taxes until after 2028, following new IRS guidance regarding the corporate alternative minimum tax. Strategic planning is aligned with Chevron’s target to maintain a plateau production level of approximately 200,000 barrels of oil equivalent per day in the Bakken. Second quarter volumes are expected to be impacted by planned maintenance at the Tioga Gas Plant, estimated to reduce throughput by 5 million to 10 million cubic feet per day.
Capital Allocation and Risk Factors
Completed a $60 million share and unit repurchase in March, leading to a distribution level increase to maintain total distributed cash on a lower share count. The company is targeting a long-term leverage range of approximately 2.5x to 3.0x debt-to-EBITDA by 2028 through natural EBITDA growth and debt repayment. Contractual protections and governance guardrails, including independent director approval requirements, prevent unilateral contract changes by the sponsor. The bar for inorganic M&A remains high as management prioritizes the existing high-yield business model and organic free cash flow generation.
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Q&A Session Highlights
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Impact of capital expenditure reductions on future growth expectations
Management clarified that the CapEx reduction reflects the end of a multi-year infrastructure buildout and improved drilling efficiencies rather than a strategic pivot. The reduction is viewed as a 'win-win' that increases free cash flow without compromising the ability to support Chevron's production targets.
Sustainability of the step-up in terminaling segment revenue
The revenue increase was driven by a cost-of-service tariff adjustment that resets annually to target specific mid-teen returns based on anticipated costs and volumes. While the first quarter benefited from this reset, management cautioned against full extrapolation as terminaling volumes can fluctuate due to short-term third-party arrangements.
Third-party volume outlook amid global macro volatility
Management reported no major changes to third-party strategy due to the Middle East conflict or other macro factors. The company continues to target 10% third-party volumes, viewing any throughput beyond that as potential upside to current guidance.
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- Hess Midstream Partners Q1 Earnings Call Highlights
May 4, 2026
Hess Midstream Partners logo
Key Points
Hess Midstream cut 2026 capital spending by about a third to roughly $100–105 million (second compressor now online and Chevron’s longer laterals reduce well-connect CapEx) and raised adjusted free cash flow guidance to $910–$960 million, roughly a 20% year‑over‑year increase at the midpoint. Severe winter weather pressured first‑quarter volumes (average 430 MMcf/d gas processing, 119k bbl/d crude terminaling, 115k bbl/d water gathering), but management expects volumes to grow through 2026 aside from planned Tioga Gas Plant maintenance in Q2 that will cut volumes by about 5–10 MMcf/d. The company completed a $60 million accretive repurchase, raised its distribution (2% increase, ~8% annualized for Class A), expects about $280 million of excess adjusted free cash flow after funding targeted distribution growth for additional buybacks/debt repayment, and does not expect material cash taxes until after 2028 thanks to recent IRS guidance on the Corporate AMT. Interested in Hess Midstream Partners LP? Here are five stocks we like better.
Hess Midstream Partners (NYSE:HESM) reported first-quarter 2026 results that management said met expectations despite severe winter weather early in the period, while also outlining a lower 2026 capital spending plan and higher adjusted free cash flow outlook.
First-quarter operational performance and volumes
Chief Executive Officer Jonathan Stein said the company “continued to execute our operational priorities and deliver our financial strategy,” noting first-quarter performance achieved guidance “which included the impact of severe winter weather in January and February.”
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Stein reported average first-quarter throughput volumes of 430 million cubic feet per day for gas processing, 119,000 barrels of oil per day for crude terminaling, and 115,000 barrels of water per day for water gathering. Volumes were lower than the fourth quarter, which Stein attributed primarily to winter weather impacts in January and February, “partially offset by recovery in March, as well as capture of additional third-party gas volumes.”
Looking ahead, Stein said the company still expects volumes to grow through the remainder of 2026, excluding the impact of planned maintenance at the Tioga Gas Plant (TGP) in the second quarter that is expected to reduce volumes by 5 million cubic feet per day to 10 million cubic feet per day for the quarter.
Capital spending reduced; free cash flow outlook raised
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Stein said Hess Midstream brought online the second of two new compressor stations during the quarter and reported first-quarter capital expenditures of $10 million, describing spending as “seasonally lower” due to severe winter weather restricting activity.
He added that capital spending is expected to be higher in the second and third quarters as the company continues its program, including completion of greenfield high-pressure gathering pipeline infrastructure started in 2025. However, with the second compressor station online and “reflecting Chevron’s move to longer laterals, which reduces well connect CapEx for Hess Midstream,” Stein said the company reduced its 2026 estimated capital expenditures “by a third to approximately $100 million.”
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As a result, and “together with the deferral of cash taxes,” Stein said Hess Midstream increased its 2026 adjusted free cash flow guidance to $910 million to $960 million, which he said represents a 20% year-over-year increase at the midpoint.
Financial results, margins, and second-quarter guidance
Chief Financial Officer Mike Chadwick said first-quarter 2026 net income was $158 million, down from approximately $168 million in the fourth quarter of 2025. Adjusted EBITDA totaled $300 million versus $309 million in the prior quarter, which Chadwick said was “primarily due to lower revenues” tied to the winter weather impacts.
Chadwick said total revenues, including pass-through revenues, decreased by approximately $15 million. Segment changes included:
Gathering revenues: down approximately $14 million Processing revenues: down approximately $6 million Terminalling revenues: up approximately $5 million
He also said total costs and expenses (excluding depreciation and amortization, pass-through costs, and net of the company’s proportional share of LM4 earnings) decreased by approximately $6 million, primarily due to lower seasonal maintenance and lower third-party offloads.
Chadwick highlighted operating leverage, stating gross adjusted EBITDA margin was approximately 83% in the quarter, above the company’s 75% target.
Adjusted free cash flow was approximately $237 million, which Chadwick said increased 14% from the fourth quarter, aided by lower capital expenditures. Net interest (excluding amortization of deferred finance costs) was approximately $53 million, and the company ended the quarter with a drawn balance of $343 million on its revolving credit facility.
For the second quarter, Chadwick guided to net income of approximately $150 million to $160 million and adjusted EBITDA of approximately $295 million to $305 million, which he said includes the planned TGP maintenance. He expects second-quarter adjusted free cash flow to decrease from the first quarter due to seasonally higher capital expenditures.
For full-year 2026, Chadwick reaffirmed guidance for net income of $650 million to $700 million and adjusted EBITDA of $1.225 billion to $1.275 billion, “approximately flat at the midpoint compared with 2025.” He said the company now expects full-year capital expenditures of approximately $105 million and continues to expect adjusted free cash flow of $910 million to $960 million.
Distributions, repurchases, and taxes
Stein said that in March the company completed an “accretive” $60 million share and unit repurchase from both the public market and its sponsor. He also said the company increased its distribution by 2% last week, which he described as approximately 8% annualized for Class A shares. Stein said the increase included the company’s targeted 5% annual increase for Class A shares as well as a distribution level increase “following our repurchase that maintains our total distributed cash on a lower share and unit count.”
Chadwick said Hess Midstream expects “excess adjusted free cash flow of approximately $280 million after fully funding our targeted 5% annual distribution growth,” which the company expects to use for incremental shareholder returns and debt repayment. He added the company will “continue to evaluate additional opportunities for incremental returns of capital” as 2026 progresses.
On taxes, Chadwick said the company “no longer expect[s] to pay $50 million of cash taxes in 2026” and does not expect to pay material cash taxes until after 2028, citing “recent interim guidance from the IRS on the application of the Corporate Alternative Minimum Tax.”
Third-party volumes, contract structure, and leverage outlook
On the Q&A portion of the call, Stein said the reduction in capital spending does not reflect a strategic change, describing it as “right-sizing our CapEx to account for things like upstream efficiencies, like longer laterals,” which he said reduces well connect requirements. He also reiterated that the first quarter is typically the low point for volumes and said second-half volumes should be higher than the first half as weather improves, maintenance concludes, and additional wells come online.
Addressing third-party activity, Stein said the company saw additional third-party volume in the first quarter, including “additional throughput from other midstream providers,” and reiterated the company’s target of 10% third-party volumes, with any additional volumes representing upside. He said he was not seeing major macro-driven changes to third-party volumes “at this point.”
Chadwick addressed strength in terminalling revenue, attributing it to an annual tariff adjustment under a cost-of-service structure. He said the terminalling contract extends through 2033 and is rebalanced annually based on anticipated volumes, capital expenditures, and operating expenses to target a mid-teen return, with tariffs flexing accordingly. Stein also noted that terminaling can vary quarter to quarter because of short-term third-party activity.
On leverage, Chadwick said the company does not have a specific target but expects leverage to decline as EBITDA grows without an increase in absolute debt, supplemented by debt repayment using a portion of free cash flow after distributions. He added that “the math would not support us getting really down far below 2.5x leverage by 2028,” providing a longer-term range for expectations through 2028.
About Hess Midstream Partners (NYSE:HESM)
Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.
Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.
The article "Hess Midstream Partners Q1 Earnings Call Highlights" was originally published by MarketBeat.
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