Hess Midstream stock reports a Q2 earnings beat as volumes soften

Published on 10/06/2026 at 15:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Hess Midstream stock posted Q2 EPS of USD 0.75 on August 3, 2026, above the USD 0.67 consensus. Revenue fell 3.7 percent to USD 399.0 million.

HESM, US4281031058, Illustration mit AI erstellt.

Hess Midstream LP stock (ISIN US4281031058) was last at USD 38.41 on the NYSE on October 5, 2026, up 1.75 percent from the previous close. The partnership's second-quarter 2026 earnings beat gives the stock a firm operating base, but lower throughput and contract risks remain central to the investment case.

Q2 earnings beat meets softer volumes

Hess Midstream reported USD 173.7 million of net income for Q2 2026, compared with USD 179.7 million in Q2 2025, while net income attributable to the partnership was USD 96.4 million, or USD 0.75 per Class A share. Operating cash flow reached USD 278.6 million for the quarter.

According to Yahoo Finance on September 22, 2026, earnings per share rose 1.4 percent year over year and exceeded the USD 0.69 consensus by 8.7 percent. Revenue declined 3.7 percent year over year to USD 399.0 million, although it exceeded the USD 396.46 million revenue estimate.

Cash flow offsets the revenue decline

Adjusted EBITDA was USD 313.7 million in Q2 2026, down 0.7 percent from USD 316.0 million a year earlier, while adjusted free cash flow increased to USD 231.6 million from USD 193.8 million. The contrast matters: lower volumes pressured the top line, but tariffs, third-party services and lower costs supported cash generation.

Yahoo Finance reported that oil terminaling volumes fell 15 percent, water gathering volumes dropped 12 percent and gas processing volumes declined 4 percent in Q2 2026. Management reaffirmed full-year adjusted EBITDA guidance of USD 1.23 billion to USD 1.28 billion and adjusted free cash flow guidance of USD 910 million to USD 960 million.

Analysts weigh contract exposure

As Investing.com reported on October 2, 2026, JPMorgan downgraded Hess Midstream from Neutral to Underweight and set a USD 39.00 price target. The bank cited minimum volume commitment step-downs, the possibility of a lower 2029 reset and the 2033 expiration of a commercial agreement.

Investing.com lists a consensus of seven analysts with a Sell rating, including five Holds and two Sells, and an average 12-month price target of USD 37.50. That target sits below the October 5 price, making the operating beat and cash-flow outlook more important than a simple earnings headline.

Makkler lists October 28, 2026 as Hess Midstream's next earnings date, putting second-half volumes and maintenance spending at the center of the next review.

HESM stays below its yearly high

HESM was last at USD 38.41 on the NYSE on October 5, 2026, with a 52-week range of USD 31.63 to USD 41.44 and volume of 985,134 shares. Its market capitalization stood at USD 7.9 billion on the same date.