2. Hess Midstream LP (NYSE:HESM)
Highest Individual Sale: $430,210,000.00
Number of Sales Above $30 million: 2
Market Capitalization: $9.2 billion
Hess Midstream LP is an owner, developer, operator, and acquirer of midstream assets, offering fee-based services to both Hess and third-party customers across the United States. The Houston, Texas-based company operates through three primary segments: Gathering, Processing and Storage, and Terminaling and Export.
The Gathering segment is responsible for natural gas gathering and compression systems, crude oil gathering systems, and produced water gathering and disposal facilities. Its gathering network spans approximately 1,410 miles of high- and low-pressure natural gas and natural gas liquids gathering pipelines.
The Processing and Storage segment includes a natural gas processing and fractionation plant in Tioga, North Dakota, along with a 50% ownership stake in the Little Missouri 4 gas processing plant south of the Missouri River in McKenzie County, North Dakota. It also encompasses the Mentor Storage Terminal in Mentor, Minnesota, which features a propane storage cavern and rail and truck loading and unloading facilities.
The Terminaling and Export segment owns several key assets, including the Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, and various connections to the Dakota Access Pipeline. Additionally, it operates the Johnson’s Corner Header System, a crude oil pipeline header system.
The company recently reported earnings for 2024, revealing a net income of $659.0 million, compared to a net income of $607.7 million in 2023. Revenue was $1.5 billion, which compares to a revenue of $1.4 billion in the prior year. Adjusted EBITDA amounted to a gain of $1.14 billion, compared to adjusted EBITDA of $1.02 billion in 2023.
Hess Midstream noted that in 2024 its throughput volumes increased 14% for gas processing, 7% for terminaling and 32% for water gathering compared with 2023, primarily due to increased Hess drilling activity and higher gas capture. The company also finalized the repurchase of a total of 8.36 million Class B Units of the Partnership from the Sponsors for around $300 million.
The company has been growing its dividends for the past six years and it currently pays a quarterly dividend of $0.6175 per share. The stock’s dividend yield on January 19 came in at 7.63%. It is among the dividend challengers list ranked by yield: top 10.
On December 2, one insider sold $430.21 million worth of Hess Midstream shares for $39.11 per share. Year-to-date, the stock went up 8.91% and is now trading at $40.33 per share. Over the past 12 months, Hess Midstream shares returned 13.61% to its investors.
According to three Wall Street analysts, Hess Midstream stock deserves a “Moderate Buy” rating, and the price target is $44.67, data from TipRanks shows. The average price target represents 10.76% from the previous price.
