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Hess Midstream rated Buy for strong yield, growth, and Chevron-backed contracts through 2033

Analyst Insights
30 May 2026
Seeking Alpha
View Source
Bullish
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Hess Midstream (HESM) received a Buy rating due to its attractive 7.91% yield, consistent distribution growth over eight years, and Chevron-backed fee-based contracts extending to 2033. The company reported a 2.6% increase in adjusted EBITDA and a 24.3% rise in adjusted free cash flow in Q1 2026, alongside ongoing share buybacks. Management aims for at least 5% annual distribution growth through 2028. Despite some single-counterparty risk, HESM trades at a low EV/EBITDA multiple and maintains low leverage, making it a compelling investment in the midstream sector.

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