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    Is Raymond James' Downgrade and Chevron-tied Board Shift Altering The Investment Case For Hess Midstream (HESM)?

    Simply Wall St·01/05/2026 19:17:02
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    • Recently, Raymond James cut its rating on Hess Midstream from Outperform to Market Perform, citing limited near-term growth prospects, while the company also reshaped its board after director Andrew B. Walz resigned to become an executive officer at Chevron.
    • This combination of a cooler analyst view and governance changes tied to Chevron’s influence raises fresh questions about Hess Midstream’s medium-term growth path and independence.
    • Next, we’ll examine how Raymond James’ downgrade, centered on subdued growth expectations, may affect Hess Midstream’s previously growth-focused investment narrative.

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    Hess Midstream Investment Narrative Recap

    To own Hess Midstream, you really need to believe in the durability of its fee-based contracts with Hess / Chevron and the long life of its Bakken infrastructure. Raymond James’ downgrade, focused on softer near term growth, does not materially change the key near term catalyst, which is consistent cash generation supporting distributions, or the biggest risk, which remains Hess Midstream’s reliance on Hess / Chevron’s production and capital allocation in the Bakken.

    The recent 2026 guidance, pointing to relatively flat earnings and limited volume growth, is the most relevant backdrop for this downgrade. It reinforces that Hess Midstream may face a quieter growth period before any potential pickup, which puts even more attention on how Chevron prioritizes Bakken development and midstream utilization, and how reliably the company can keep funding its targeted distribution growth while managing leverage and capital needs.

    But while distributions have been growing, investors should also be aware of the concentration risk around Chevron’s long term drilling decisions and how...

    Read the full narrative on Hess Midstream (it's free!)

    Hess Midstream's narrative projects $2.1 billion revenue and $769.1 million earnings by 2028.

    Uncover how Hess Midstream's forecasts yield a $36.86 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    HESM 1-Year Stock Price Chart
    HESM 1-Year Stock Price Chart

    Six fair value estimates from the Simply Wall St Community span roughly US$11.87 to US$73.11 per share, highlighting very different views of Hess Midstream’s potential. When you set these side by side with its dependence on Chevron backed minimum volume commitments, it underlines why many readers will want to compare several viewpoints before deciding how comfortable they are with that single customer exposure.

    Explore 6 other fair value estimates on Hess Midstream - why the stock might be worth less than half the current price!

    Build Your Own Hess Midstream Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    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.