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How Reaffirmed 2026 Earnings Guidance and Solid Q1 Results Will Impact Hess Midstream (HESM) Investors

Simply Wall St · 3d ago
  • Hess Midstream LP recently reported past first-quarter 2026 results, posting higher year-over-year revenue of US$390.1 million and net income of US$87.6 million, alongside steady operational throughput across most segments.
  • The company also reaffirmed its full-year 2026 net income outlook of US$650 million to US$700 million, signalling confidence in its fee-based midstream model despite mixed volume trends in crude and water gathering.
  • Next, we will examine how reaffirmed 2026 earnings guidance and modest throughput growth influence Hess Midstream’s existing investment narrative.

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Hess Midstream Investment Narrative Recap

To own Hess Midstream, you have to believe in the durability of its fee-based Bakken infrastructure and its long-term contracts with Hess Corp under Chevron, while accepting concentrated customer and regional exposure. The latest results and reaffirmed 2026 net income outlook suggest the near term earnings catalyst remains largely unchanged, with mixed crude and water volumes underlining that throughput risk from changes in Chevron’s drilling posture is still the key issue to watch.

Among recent announcements, the reaffirmed full year 2026 net income guidance of US$650 million to US$700 million stands out, because it ties directly to the core catalyst of steady contracted throughput and fee-based revenues. Management’s willingness to keep this range despite softer crude and water gathering volumes frames how much volume variability the current contract structure can absorb before it begins to pressure the company’s cash generation story.

Yet investors should be aware that heavy reliance on Hess Corp, now under Chevron, leaves Hess Midstream exposed if Bakken development priorities ever shift...

Read the full narrative on Hess Midstream (it's free!)

Hess Midstream's narrative projects $1.7 billion revenue and $548.7 million earnings by 2029.

Uncover how Hess Midstream's forecasts yield a $36.83 fair value, a 8% downside to its current price.

Exploring Other Perspectives

HESM 1-Year Stock Price Chart
HESM 1-Year Stock Price Chart

Five fair value estimates from the Simply Wall St Community range widely from US$12.97 to US$94.50, underscoring how differently investors can view Hess Midstream’s prospects. Against this backdrop, the reaffirmed 2026 earnings guidance keeps the focus on whether Bakken throughput growth from Chevron’s activity can sustain the company’s current income profile over time.

Explore 5 other fair value estimates on Hess Midstream - why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.