Hess Midstream Partners (NYSE:HESM) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Quarterly beat: Hess Midstream reported Q earnings of $0.68 EPS, beating the $0.65 consensus by $0.03, with revenue of $390.1M roughly in line and strong profitability metrics (ROE 74.89%, net margin 21.77%).
• Dividend raised but highly covered: The firm declared a quarterly dividend of $0.7792 (up from $0.76), implying a $3.12 annual payout and an 8.2% yield, though the payout ratio is elevated at 106.99%.
• Mixed analyst view and valuation: Wall Street’s consensus is a “Hold” with an average price target of $40.14; the stock has a market cap of $7.93B and a P/E of 13.34, trading in a 12‑month range of $31.63–$44.14.

Hess Midstream Partners (NYSE:HESM - Get Free Report) announced its quarterly earnings data on Monday. The company reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.03, FiscalAI reports. Hess Midstream Partners had a return on equity of 74.89% and a net margin of 21.77%.The business had revenue of $390.10 million during the quarter, compared to the consensus estimate of $389.51 million.

Hess Midstream Partners Stock Performance

Shares of HESM stock opened at $38.17 on Monday. The business's 50-day moving average price is $38.74 and its 200-day moving average price is $35.88. Hess Midstream Partners has a 12 month low of $31.63 and a 12 month high of $44.14. The firm has a market capitalization of $7.93 billion, a price-to-earnings ratio of 13.34 and a beta of 0.54. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 8.54.

Hess Midstream Partners Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Thursday, May 7th will be paid a dividend of $0.7792 per share. The ex-dividend date of this dividend is Thursday, May 7th. This is a positive change from Hess Midstream Partners's previous quarterly dividend of $0.76. This represents a $3.12 dividend on an annualized basis and a dividend yield of 8.2%. Hess Midstream Partners's payout ratio is 106.99%.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Wells Fargo & Company upped their price objective on Hess Midstream Partners from $39.00 to $40.00 and gave the stock an "equal weight" rating in a research report on Friday, March 13th. Zacks Research upgraded Hess Midstream Partners from a "strong sell" rating to a "hold" rating in a research report on Monday, March 2nd. Weiss Ratings upgraded Hess Midstream Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 2nd. Raymond James Financial downgraded Hess Midstream Partners from an "outperform" rating to a "market perform" rating in a research report on Monday, January 5th. Finally, The Goldman Sachs Group downgraded Hess Midstream Partners from a "neutral" rating to a "sell" rating and set a $32.00 price objective for the company. in a research report on Monday, April 20th. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Hess Midstream Partners currently has an average rating of "Hold" and an average price target of $40.14.

Institutional Trading of Hess Midstream Partners

A number of hedge funds have recently made changes to their positions in HESM. Geneos Wealth Management Inc. boosted its stake in shares of Hess Midstream Partners by 14.3% during the second quarter. Geneos Wealth Management Inc. now owns 2,400 shares of the company's stock valued at $92,000 after purchasing an additional 300 shares in the last quarter. Larson Financial Group LLC boosted its stake in shares of Hess Midstream Partners by 668.5% during the third quarter. Larson Financial Group LLC now owns 3,074 shares of the company's stock valued at $106,000 after purchasing an additional 2,674 shares in the last quarter. Advisory Services Network LLC acquired a new stake in shares of Hess Midstream Partners during the third quarter valued at about $160,000. US Bancorp DE acquired a new stake in shares of Hess Midstream Partners during the third quarter valued at about $173,000. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Hess Midstream Partners during the fourth quarter valued at about $174,000. 98.97% of the stock is owned by institutional investors and hedge funds.

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.

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