Hess Midstream: Time To Reap The Rewards, But Not Immune To Macro Pressures

IWA Research2.64K FollowersFollow5ShareSavePlay(11min)CommentsSummaryHess Midstream LP (HESM) remains a Buy, demonstrating strong cash flow, resilient financials, and a sustainable, competitive yield despite macro uncertainty.HESM pivots from heavy CAPEX to capital returns, targeting 5% distribution growth through 2028, with recent buybacks and targeting leverage reduction below 2.5x Adj. EBITDA.Guidance calls for Adj. FCF to reach $850–900 million, growing 10% annually, supporting an 8.4% yield and 76% payout ratio by 2026.Intrinsic value is estimated above current levels, with long-term tailwinds offsetting near-term inflation and macro risks. Guido Mieth/DigitalVision via Getty Images Introduction Back when I first covered Hess Midstream LP (HESM), I highlighted their strong cash flow and resilient financials despite recent pressure resulting from macro issues, supporting their solid yield. Following a strong endThis article was written byIWA Research2.64K FollowersFollowI've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HESM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.