Hess Midstream Partners (NYSE:HESM) Issues Quarterly Earnings Results, Meets Expectations

Hess Midstream Partners (NYSE:HESM) announced its quarterly earnings data on Monday. The company reported $0.72 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.72, FiscalAI reports. The business had revenue of $374.50 million for the quarter, compared to analysts’ expectations of $419.16 million. Hess Midstream Partners had a return on equity of 69.03% and a net margin of 20.46%.The firm’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.68 EPS.

Here are the key takeaways from Hess Midstream Partners’ conference call:

• Capital spending will fall sharply — management expects ~40% lower CapEx in 2026 (~$150M) and < $75M/year by 2027–2028 as major buildouts are complete, enabling higher free cash flow.
• Material free cash flow generation — adjusted free cash flow is forecast at $850–$900M in 2026 (≈12% growth YoY) with ~10% annualized growth through 2028, which the company plans to use for shareholder returns and debt reduction.
• Revenue stability from contracts — roughly 95% of 2026 revenues are covered by minimum volume commitments (falling to ~90% in 2027), providing downside protection against volume volatility.
• Near-term volume and earnings pressure from weather — severe winter weather depressed Q4 2025 volumes and profits (Adj. EBITDA $309M) and the company expects lower volumes and Q1 2026 Adj. EBITDA of $295–$305M as weather impacts persist.
• Conservative capital-allocation and deleveraging plan — management intends to fund a targeted 5% annual distribution growth from free cash flow while using excess FCF for incremental returns and paying down debt, expecting leverage to fall below ~3x over time.

Hess Midstream Partners Trading Down 1.2%

Shares of HESM stock opened at $35.03 on Tuesday. The business’s fifty day moving average is $34.38 and its 200 day moving average is $36.19. Hess Midstream Partners has a 52-week low of $31.63 and a 52-week high of $44.14. The company has a market capitalization of $7.28 billion, a PE ratio of 12.42 and a beta of 0.62. The company has a debt-to-equity ratio of 8.83, a quick ratio of 0.75 and a current ratio of 0.75.

Hess Midstream Partners Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Investors of record on Thursday, February 5th will be given a $0.7641 dividend. This represents a $3.06 dividend on an annualized basis and a dividend yield of 8.7%. This is a boost from Hess Midstream Partners’s previous quarterly dividend of $0.75. The ex-dividend date is Thursday, February 5th. Hess Midstream Partners’s dividend payout ratio (DPR) is 107.09%.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Hess Midstream Partners in a research report on Monday, December 29th. Zacks Research upgraded shares of Hess Midstream Partners from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 18th. Wall Street Zen cut shares of Hess Midstream Partners from a “buy” rating to a “hold” rating in a report on Saturday, November 15th. Finally, Raymond James Financial lowered Hess Midstream Partners from an “outperform” rating to a “market perform” rating in a report on Monday, January 5th. Eight investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $40.57.

Hedge Funds Weigh In On Hess Midstream Partners

Institutional investors have recently made changes to their positions in the stock. Creative Planning boosted its holdings in shares of Hess Midstream Partners by 4.7% in the 3rd quarter. Creative Planning now owns 9,000 shares of the company’s stock worth $311,000 after purchasing an additional 404 shares in the last quarter. Corient Private Wealth LLC boosted its stake in Hess Midstream Partners by 71.6% in the second quarter. Corient Private Wealth LLC now owns 16,513 shares of the company’s stock worth $636,000 after buying an additional 6,889 shares in the last quarter. Voleon Capital Management LP boosted its stake in Hess Midstream Partners by 10.5% in the second quarter. Voleon Capital Management LP now owns 18,205 shares of the company’s stock worth $701,000 after buying an additional 1,727 shares in the last quarter. Occudo Quantitative Strategies LP bought a new position in Hess Midstream Partners during the second quarter valued at approximately $343,000. Finally, Cerity Partners LLC purchased a new position in shares of Hess Midstream Partners during the second quarter worth approximately $417,000. Institutional investors own 98.97% of the company’s stock.

About Hess Midstream Partners

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.