| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 13.8x | 17.8x | Top tier | |
Growth | 40 | 2.8% | 7.1% | Bottom tier | |
Quality | 98 | 20.6% | 4.5% | Top tier | |
Safety | 43 | 3.0x | 2.6x | Around median | |
Capital Return | 76 | — | 2.12% | Top tier | |
Momentum | 67 | -1.6% | 2.9% | Top tier | |
Sentiment | 68 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Hess Midstream LP operates energy infrastructure encompassing gas, oil, and water gathering, gas processing, and oil storage and terminaling services. Its revenue is based on the volumes of materials flowing through these assets and the tariffs charged on them, with an additional contribution from third-party services; in Q2 FY2026, average processing volumes were 433 million cubic feet per day of gas, versus 117 thousand barrels per day through oil terminals and 121 thousand barrels per day of gathered water.
In Q2 FY2026, revenue totaled $399 million, exceeding analysts' estimates of $396 million, while earnings per share were $0.75 versus estimates of $0.67. The company recorded net income of $174 million, compared with approximately $158 million in Q1 FY2026, while adjusted EBITDA increased to $314 million from $300 million.
The overall adjusted EBITDA margin remained near 85% in Q2 FY2026, exceeding the company's long-term target of 75%. Gathering revenue increased by approximately $7 million and processing revenue by approximately $3 million compared with the previous quarter, while lower operating expenses and the deferral of some maintenance work to the second half supported profitability; therefore, the quarter's full margin does not necessarily represent a sustainable level.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $35.5, within a range of $32 to $39, accompanied by a Neutral consensus rather than a Buy recommendation. The average and upper end of the targets are below the 52-week range high of $41.63, while the annual range extends to a low of $31.63; this valuation reflects a balance between strong cash flow and distributions, expected stability in adjusted earnings at the midpoint, and the return of maintenance and operating expenses in the second half of FY2026.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue totaled $399 million versus expectations of $396 million, and earnings per share reached $0.75 versus the expected $0.67. Net income was $174 million, compared with approximately $158 million in Q1 FY2026, while adjusted EBITDA increased to $314 million. Higher tariffs and third-party services supported the results and offset lower production volumes, while profitability also benefited from lower operating expenses and the deferral of some maintenance work.
On August 3, 2026, the company reaffirmed its FY2026 net income guidance of between $650 million and $700 million. It expects adjusted EBITDA between $1.225 billion and $1.275 billion, which is nearly flat at the midpoint compared with FY2025. It also targets adjusted free cash flow between $910 million and $960 million, representing year-over-year growth of 20% at the midpoint, and an excess of approximately $280 million after funding targeted distribution growth.
Management expects second-half volumes to increase by at least 5% over the first half, with sequential growth beginning from Q2 FY2026. This is tied to the ramp-up of Chevron's well program and higher productivity from wells with longer laterals, along with continued opportunities to add third-party gas volumes. The operating outlook assumes Chevron can maintain production of approximately 200 thousand barrels of oil equivalent per day even with fewer drilling rigs.
The overall adjusted EBITDA margin was approximately 85% in Q2 FY2026, exceeding management's long-term target of 75%. Management explained that strong operating performance supported the margin, but minor credits and the deferral of maintenance and operating expenses to Q3 and Q4 provided additional support. Management therefore kept the 75% target unchanged and expects higher operating expenses in Q3 to offset part of the impact of revenue growth.
The company targets annual distribution growth of 5%, and the declared distribution was $0.788 per Class A unit. In March 2026, it executed a $60 million repurchase from the public and the sponsor, then reduced the amount drawn on the revolving facility by approximately $87 million in Q2 to $256 million. The Board of Directors determines the mix of repurchases and debt reduction, while guidance indicates that leverage will decline from approximately 3 times to around 2.5 times by FY2028.
Reaching the upper end of the adjusted EBITDA range requires strong execution of the maintenance plan and favorable weather that reduces operational disruptions. Some maintenance work and operating expenses shifted from Q2 to the second half, with planned maintenance at LM4 and capital expenditures expected to increase in Q3. The company's volumes are also tied to Chevron's ability to maintain the production supporting the outlook, while higher maintenance costs or weather disruptions could push results toward the lower end of the annual range.
