HESM stock hits all-time high of $42.16 amid robust growth

Published 03/03/2025, 18:16
HESM stock hits all-time high of $42.16 amid robust growth

Hess Midstream Partners LP (NYSE:HESM) shares soared to an all-time high of $42.16, underscoring a period of remarkable growth for the company. According to InvestingPro data, the stock offers an attractive 6.72% dividend yield and has maintained dividend increases for 8 consecutive years. This milestone reflects a significant uptrend in the stock’s performance, with total returns reaching nearly 30% over the past year. Investors have shown increased confidence in HESM’s business model and prospects, supported by robust revenue growth of 10.89% and an "GREAT" financial health score from InvestingPro. The stock has been outperforming many of its peers in the energy sector. The company’s strategic initiatives and operational efficiencies are likely contributing factors to the stock’s robust performance and investor optimism. With a strong gross profit margin of 76.78% and detailed analysis available in the comprehensive Pro Research Report, investors can access deeper insights into HESM’s value drivers through InvestingPro.

In other recent news, Hess (NYSE:HES) Midstream reported its fourth-quarter 2024 earnings, with an earnings per share (EPS) of $0.68, surpassing analyst expectations of $0.67. However, the company’s revenue slightly missed forecasts, coming in at $388.5 million compared to the anticipated $390.41 million. In another development, Hess Midstream announced the commencement of a public offering of 10 million Class A shares, facilitated by an affiliate of Global Infrastructure Partners, with Goldman Sachs & Co. LLC acting as the bookrunning manager. Additionally, Hess Midstream priced an $800 million offering of 5.875% senior unsecured notes due in 2028 to redeem its existing 5.625% senior notes maturing in 2026.

Citi analyst Douglas Irwin raised the price target for Hess Midstream from $41.00 to $44.00, maintaining a Buy rating, reflecting optimism about the company’s future free cash flow profile. The analyst noted expected improvements in free cash flow following a period of elevated capital expenditures, projecting significant reductions once additional processing capacity is completed by 2027. Management at Hess Midstream has indicated plans for a clear path to free cash flow growth, supported by an increase in EBITDA and a decrease in capital expenditures. These developments are part of Hess Midstream’s broader strategy to enhance its financial health and operational capacity through strategic financial moves and infrastructure expansion.

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