Hess Midstream (HESM) Valuation Check After Stronger Q4 Revenue And Net Income Results

Hess Midstream (HESM) is back on investors’ radar after reporting fourth quarter 2025 revenue of US$404.2 million and net income of US$93.3 million, both above the prior year’s comparable figures.

See our latest analysis for Hess Midstream.

The latest earnings update comes on the back of steady share price strength, with a 10.02% 90 day share price return and a 5.01% 30 day share price return, while the 5 year total shareholder return of 148.08% points to longer term compounding.

If these midstream results have you thinking about where else cash generative infrastructure might sit in your portfolio, take a look at our 25 power grid technology and infrastructure stocks as a starting list of ideas.

With the units trading close to the current analyst price target and a value score of 5, the question is whether Hess Midstream still offers upside or if the market is already pricing in its future growth.

Most Popular Narrative: 40% Undervalued

Hess Midstream's most followed valuation narrative pegs fair value at $36.83, almost exactly in line with the recent $36.68 close, yet still frames the units as materially undervalued on longer term assumptions.

Long term focus on disciplined, low risk growth investments and high operating leverage (80% EBITDA margin) helps the company convert volume and pricing tailwinds into higher free cash flow and net income, which can enhance returns even amid inflation and cost pressures.

Read the complete narrative.

Want to see what is sitting behind that confidence in cash flow and distributions? The narrative leans heavily on throughput expansion, fatter margins and a richer future earnings multiple. Curious how those moving parts combine into a single fair value number and why analysts think the current price still leaves room on the table?

Result: Fair Value of $36.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this story depends heavily on Bakken output and Chevron’s drilling plans; weaker activity or stricter regional regulations could quickly challenge those upbeat assumptions.

Find out about the key risks to this Hess Midstream narrative.

Build Your Own Hess Midstream Narrative

If you see the Hess Midstream story differently or simply want to test your own assumptions against the data, you can build a personalized view in just a few minutes and Do it your way

A great starting point for your Hess Midstream research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Hess Midstream has sharpened your focus, do not stop here. Broaden your watchlist with other focused ideas that could strengthen your overall portfolio mix.

• Target potential mispricings by scanning our list of 53 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect their underlying strength.
• Lock in income ideas by reviewing our curated group of 13 dividend fortresses that offer higher yields while still aiming for balance sheet support.
• Reduce portfolio stress by checking companies in the 85 resilient stocks with low risk scores that score well on financial resilience and business stability.

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.

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