Hess Midstream Partners LP (HESM) vs Kinetik Holdings Inc. (KNTK)

Hess Midstream Partners LP and Kinetik Holdings Inc. are both Oil & Gas Midstream companies. Hess Midstream Partners LP and Kinetik Holdings Inc. are of similar size ($8.5B and $7.9B). Hess Midstream Partners LP trades at the lower P/E: 13.2× against 18.4×. Kinetik Holdings Inc. grew revenue faster over the last twelve months: 14.2% against 2.78%. Hess Midstream Partners LP has the higher net margin (23.2% vs 10.4%) and the higher return on invested capital (15.4% vs 4.47%). Both pay a dividend; Kinetik Holdings Inc. yields more (9.21% vs 8.10%). Across the 22 metrics below, Hess Midstream Partners LP leads on 14 and Kinetik Holdings Inc. on 8.

Valuation

Metric HESM KNTK Oil & Gas Midstream median
P/E 13.19 18.35 13.19
P/S 3.04 2.04 2.60
P/B 12.66 n/m 2.08
Price to free cash flow 5.86 31.19 10.14
EV/EBITDA 6.94 12.69 8.11
EV/Sales 5.32 4.14 3.89
Earnings yield 7.58% 5.45% 6.83%
Free cash flow yield 17.06% 3.21% 6.94%

Profitability

Metric HESM KNTK Oil & Gas Midstream median
Gross margin 100.00% 40.92% 58.81%
Operating margin 62.06% 10.52% 32.14%
Net margin 23.23% 10.41% 21.16%
Free cash flow margin 51.90% 6.54% 10.15%
Return on equity 83.74% (14.28%) 11.30%
Return on assets 8.64% 2.74% 5.00%
Return on invested capital 15.41% 4.47% 6.13%

Growth

Metric HESM KNTK Oil & Gas Midstream median
Revenue growth (TTM) 2.78% 14.15% 15.44%
EPS growth (last fiscal year) 14.86% 157.84% —
Revenue growth, 5-year CAGR 8.23% 33.88% 8.96%
Net income growth, 5-year CAGR 71.19% 126.35% 0.00%

Health

Metric HESM KNTK Oil & Gas Midstream median
Debt to equity 9.48 (3.34) 0.78
Current ratio 0.77 0.68 1.19
Net debt to EBITDA 3.05 6.79 3.42

Dividend

Metric HESM KNTK Oil & Gas Midstream median
Dividend yield 8.10% 9.21% 7.29%
Payout ratio — 1.79 0.64

Size

Metric HESM KNTK Oil & Gas Midstream median
Market cap 7.93b 8.53b 3.61b

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