10 Best Pipeline and MLP Stocks to Invest In According to Analysts

8. Hess Midstream LP (NYSE:HESM)

Upside Potential According to Analysts: 6.99%

Hess Midstream LP (NYSE:HESM) owns, develops, and operates midstream assets, providing fee-based services primarily to Hess and third-party clients in the US. They operate through three segments, namely Gathering, Processing & Storage, and Terminaling & Export segments.

The Gathering segment manages extensive natural gas and crude oil and produces water-gathering systems, encompassing thousands of miles of pipelines. The Processing and Storage segment features the Tioga Gas Plant and is interested in the Little Missouri 4 gas processing plant and the Mentor Storage Terminal, which handles propane storage and rail/truck loading. The Terminaling and Export segment owns the Ramberg terminal, Tioga rail terminal, crude oil rail cars, and Dakota Access Pipeline connections, including the Johnson’s Corner Header System. These assets facilitate the transportation and export of crude oil and natural gas products. Hess Midstream’s infrastructure supports the efficient movement of energy resources within the Bakken region.

Hess Midstream LP (NYSE:HESM) beat analyst expectations for Q4 2024, with revenue at $395.90 million, up by $5.03 million, while EPS matched estimates at $0.68. Net income was $172 million and EBITDA for the fourth quarter was $298 million.

John Gatling, the President and CEO of Hess Midstream LP (NYSE:HESM) backed the company’s strong performance during the company’s recent annual earnings call. He said:

“2024 was a year of continued strong performance execution for Hess Midstream. We delivered significant volume growth, including 14% year-over-year growth in gas processing throughputs. Additionally, we made excellent progress on key multiyear projects to strategically grow our gas gathering system, while advancing our planned gas processing expansion.

Today, we issued our guidance release, extending our MVCs and growth profile through 2027, with gas volumes expected to grow by more than 25% from 2024. Our long-term growth remains driven by Hess’ planned development activity and increasing third-party volumes, reinforcing the need for additional gas processing capacity.”