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Hess Midstream Partners LP

HESM Energy Oil & Gas Midstream

Hess Midstream Partners LP’s revenue for fiscal 2025 (year ended December 2025) was $1.6 billion, up 8.41% from fiscal 2024.

Revenue
−2.57%
EPS
+1.35%
Free cash flow
+35.4%
Total debt
−5.16%

Quarter to September 2026, against a year earlier

30.02 0.28 −0.92%
Market cap
$6.3B
P/E
10.5×
Fwd P/E
10.5×
Dividend yield
10.3%
F-score
6/9
Altman Z
n/a
Beneish M
−2.65
Dividend safety
42/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Hess Midstream Partners LP (HESM) valuation and DCF model

What the price implies · reverse DCF

At $30.02 the price implies free cash flow after share-based pay growing −6.3% a year for ten years.

Free cash flow after share-based pay grew 24.0% a year over the last ten years, 8.8% over the last five. The price asks for 30.3 points a year less than its ten-year rate. The industry’s median company is priced for 5.8%.

In December 2018 the price assumed −17.4% a year; Hess Midstream Partners LP went on to grow free cash flow after share-based pay 18.2% a year to FY2025.

Price implies
−6.3%
Last 5 years, reported
8.8%
Last 10 years, reported
24.0%
Industry median implies
5.8%

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
−6.3% a year for ten years
$30.02
today’s price
Its base case
24.0% a year for five years, then 14.4%
$371.59
1137.8% above today’s price

Both are growth in free cash flow after share-based pay, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Hess Midstream Partners LP’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Cash flow to equity
the four quarters to September 2026, from the 10-Q and 10-K filings, before share-based pay

Yearly growth in cash flow. It usually slows as the company matures.

Today’s price implies free cash flow after share-based pay growing −6.3% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
Free cash flow Revenue and margin
negative is net cash
new shares the cash flow does not pay for

Against Hess Midstream Partners LP’s own cost of capital: risk-free 4.3% + beta 0.65 × equity premium 4.5% = 7.2% cost of equity; weighted, 7.2%.

Use 7.2%
Equity value $47.47b ▲ above market cap $3.84b
Base case value per share $371.59 equity value ÷ 127.75m shares
Current price $30.02 market price per share
Above today’s price 1137.8% upside at the base case’s assumptions

How we got there$16.66b 10 years of cash to equity+$34.40b terminal value−$3.60b net debt=$47.47b equity value÷127.75m shares=$371.59 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Oil & Gas Midstream).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 10.48× 13.43× 14.77× 29% below 11.68× 10% below
P/FCF 4.33× 4.02× 3.43× 26% above 8.52× 49% below
P/B 9.65× 6.73× 3.61× 167% above 1.68× 473% above
EV/EBITDA 6.05× 5.52× 4.48× 35% above 9.03× 33% below
EV/Sales 4.68× 4.21× 3.28× 43% above 3.43× 36% above
P/E P/FCF P/B EV/EBITDA EV/Sales
10.88×13.35×15.82×18.29×10Y avg 14.77×2017201820192020202120222023202420252026

HESM trades at 10.48× P/E, against a 10-year average of 14.77× (range 10.48×–18.59×). That is cheaper than 100% of the last 9 year-end readings; re-rating to the average implies $42.30 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.