Hess Midstream stock hits all-time high at $39.13

Published 14/01/2025, 15:34
Hess Midstream stock hits all-time high at $39.13

Hess Midstream Partners LP (NYSE:HESM) stock soared to an all-time high, reaching a price level of $39.13, while offering investors a substantial 7.05% dividend yield. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value estimates. This milestone underscores the company's robust performance over the past year, which has seen the stock climb an impressive 30.14%, supported by strong fundamentals including 11.43% revenue growth and $2.37 earnings per share. Investors have shown increasing confidence in Hess (NYSE:HES) Midstream's business model and growth prospects, as reflected in the stock's strong upward trajectory. The energy sector's recovery and the company's strategic initiatives are likely contributing factors to this remarkable price achievement, signaling a positive outlook for Hess Midstream's future market performance. InvestingPro subscribers can access 12 additional investment tips and a comprehensive Pro Research Report for deeper analysis.

In other recent news, Hess Midstream LP has undertaken significant business moves. The midstream company recently repurchased $100 million in Class B units, a transaction that represents about 1.2% of the consolidated company. This repurchase is expected to increase the distributable cash flow per Class A share, potentially allowing for growth above the company's annual target of at least 5% through 2026.

In addition to this, Hess Midstream reported a strong third-quarter performance, with throughput volumes surpassing projections. The company's financial strategy, which prioritizes shareholder returns, has resulted in substantial capital returns since 2021, totaling $1.85 billion. Looking ahead, Hess Midstream projects a net income between $170 million and $185 million for Q4 2024, with adjusted EBITDA estimated between $295 million and $310 million.

The company has also reaffirmed its 2024 throughput guidance, anticipating approximately 10% growth in throughput compared to 2023. As part of its strategy, Hess Midstream continues to evaluate potential M&A opportunities to enhance its position in the basin. These recent developments reflect the company's commitment to steady growth and strong shareholder returns.

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