D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - UBS maintained its Buy rating and $45.00 price target on Hess Midstream Partners LP (NYSE:HESM) in a research note released Friday. The midstream company, which boasts a healthy 7.4% dividend yield and has raised dividends for 8 consecutive years, currently shows a GOOD financial health score according to InvestingPro analysis.
The investment bank slightly adjusted its second-quarter 2025 adjusted EBITDA estimate to $308.0 million from $306.9 million, citing seasonally higher volumes and absence of weather disruptions, partially offset by seasonally higher operating and maintenance expenses. With a market capitalization of $8.07 billion and trading at a P/E ratio of 14.9x, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.
UBS’s Q2 2025 estimate stands slightly above the Street consensus of $306.7 million, with projected capital expenditures of $75.0 million compared to $45.5 million in the first quarter of 2025.
The firm expects Gathering EBITDA of $160.6 million (vs. $150.2 million in Q1), Processing & Storage EBITDA of $128.1 million (vs. $121.8 million in Q1), and Terminaling and Export EBITDA of $21.9 million (vs. $22.8 million in Q1).
For full-year 2025, UBS forecasts total EBITDA of $1,260 million, slightly exceeding the Street estimate of $1,258.8 million and landing at the midpoint of Hess (NYSE:HES) Midstream’s guidance range of $1,235-$1,285 million.
In other recent news, Hess Midstream LP reported its first-quarter 2025 earnings, showing a slight beat on earnings per share (EPS) at $0.65 compared to the forecast of $0.63, while revenue fell short at $382 million against the expected $384.46 million. The company highlighted a robust gross adjusted EBITDA margin of 80%, surpassing its target of 75%. Hess Midstream announced a $200 million share repurchase plan, including $190 million worth of Class B units from its sponsors and a $10 million accelerated share repurchase of Class A shares. Additionally, Hess Midstream initiated a public offering of 15,022,517 Class A shares, managed by J.P. Morgan and Citigroup (NYSE:C), although the company will not receive any proceeds from this sale. The repurchase transactions are expected to increase distributable cash flow per Class A share, potentially exceeding the company’s annual distribution growth target of at least 5% through 2027. Analyst firms such as JPMorgan and Wells Fargo (NYSE:WFC) have shown interest in the company’s financial strategies and operational performance. The company projects net income for the second quarter of 2025 to be between $170-180 million, maintaining a positive outlook for the year. Hess Midstream continues to focus on its financial strategy aimed at delivering shareholder returns while maintaining balance sheet strength.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.