Hess Midstream: High-Quality Midstream Income Amid Chevron-Induced Uncertainty
Overview
Hess Midstream (HESM) is a resilient, fee-based midstream operator focused on oil, gas, and water infrastructure in the Bakken shale, with a business model built on long-term contracts that ensure high cash flow stability. The company’s prospects have recently been clouded by the acquisition of its anchor customer, Hess Corp., by Chevron, introducing the risk of strategic shifts in Bakken investment. HESM’s financials are robust, driven by firm volume commitments and inflation protection, supporting a high and growing distribution. While its operational excellence and visible growth path are clear positives, investors must weigh these against new, significant risks tied to Chevron’s strategic priorities.