Hess Midstream LP (NYSE:HESM) is a key player in the midstream energy sector, focusing on the processing, storage, and transportation of natural gas and crude oil. The company operates primarily in the United States and is known for its strategic partnerships and infrastructure assets. HESM competes with other midstream companies like Enterprise Products Partners and Kinder Morgan.
On February 2, 2026, HESM reported earnings per share (EPS) of $0.72, slightly below the estimated $0.723. This minor miss in EPS reflects the company's performance in the fourth quarter of 2025. Despite this, the EPS increased from $0.68 in the same quarter of 2024, indicating some growth in profitability over the year.
HESM's revenue for the quarter was approximately $404.2 million, falling short of the estimated $419.2 million. This shortfall in revenue might concern investors, as it suggests challenges in meeting market expectations. The company's net income for the quarter was $168 million, a slight decrease from $172.1 million in the previous year, highlighting some pressure on profitability.
The company's financial ratios provide further insights into its performance. HESM has a price-to-earnings (P/E) ratio of 13.81, which shows how the market values its earnings. The price-to-sales ratio of 4.56 and enterprise value to sales ratio of 6.91 reflect the market's valuation of its revenue and sales, including debt. The enterprise value to operating cash flow ratio of 11.17 indicates the relationship between the company's value and its cash flow from operations.
HESM's financial health is also characterized by a high debt-to-equity ratio of 6.63, indicating a significant reliance on debt financing. This could pose risks if the company faces financial challenges. Additionally, the current ratio of 0.75 suggests potential liquidity issues, as it may struggle to cover short-term liabilities with current assets. Despite these challenges, the earnings yield of 7.24% offers a decent return on investment for shareholders.
