Hess Midstream's Q2 adjusted EBITDA beats on lower operating costs
HESM•Analyst view and valuation
The current average analyst rating on the shares is "hold," with no "strong buy" or "buy" ratings, 5 "hold" ratings, and 2 "sell" or "strong sell" ratings.
The average consensus recommendation for the oil and gas transportation services peer group is "buy."
Wall Street's median 12-month price target for Hess Midstream LP is $37.00, about 9.4% below its July 31 closing price of $40.83. The stock recently traded at 14 times the next 12-month earnings, versus a P/E of 13 three months ago.
Key second-quarter figures
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q2 Net Income | $173.70 million | |
| Q2 Adjusted EBITDA | $313.70 million | $301.81 million |
| Q2 Adjusted Free Cash Flow | $231.60 million | |
| Q2 Capex | $30.60 million |
Guidance and distribution update
Hess Midstream reaffirmed its full-year 2026 guidance, including:
- Net income of $650 million to $700 million
- Adjusted EBITDA of $1.225 billion to $1.275 billion
- Adjusted free cash flow of $910 million to $960 million
The company also raised its quarterly cash distribution.
