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Hess Midstream Partners LP (NYSE:HESM) stock soared to an all-time high of $41.4, marking a significant milestone for the company. The midstream energy operator, with a market capitalization of $9 billion, has maintained an impressive dividend yield of 6.6% and has consistently raised its dividend for eight consecutive years. This peak reflects a robust year-over-year growth, with the stock delivering an exceptional 38.7% total return over the past year. Investors have shown increasing confidence in Hess Midstream's performance and prospects, contributing to the stock's strong upward trajectory. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ stocks, the company's current valuation suggests it may be slightly undervalued relative to its Fair Value. The company's strategic initiatives and operational efficiencies are likely factors driving this positive investor sentiment, as reflected in the stock's remarkable journey to its highest price level to date. With a healthy gross profit margin of 76.5% and revenue growth of 11.4% in the last twelve months, the company demonstrates strong operational performance.
In other recent news, Hess Midstream LP has made significant strides in its operations. The company recently repurchased $100M in Class B units, a move that is expected to increase distributable cash flow per Class A share and potentially allow for distribution growth above the company's annual target of at least 5% through 2026. This development follows a robust third-quarter performance, marked by significant throughput volumes across its operations. Hess Midstream's Bakken production, managed by Hess Corporation (NYSE:HES), surpassed projections, contributing to the strong performance.
Further, the company's financial strategy, which prioritizes shareholder returns, has already 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. Capital expenditures for 2024 are expected to be around $270 million, with plans for a new gas processing plant in the pipeline.
With a steady growth outlook, Hess Midstream reaffirmed its 2024 throughput guidance and anticipates approximately 10% growth in throughput compared to 2023. The company continues to strategically evaluate potential M&A opportunities to enhance its position in the basin. These are among the recent developments for Hess Midstream, a company committed to steady growth and strong shareholder returns.
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