Should 32 Consecutive Dividend Hikes at Hess Midstream (HESM) Influence Investor Strategy?

• Hess Midstream LP recently announced a 2.4% increase in its quarterly dividend, marking the 32nd consecutive quarter of dividend growth and reporting strong adjusted EBITDA for Q3 2025, with operating margins well above its internal targets.
• This ongoing record of rising shareholder returns highlights the company's focus on dependable cash flow and operational efficiency in a competitive midstream market.
• We’ll explore how the company’s consistent dividend growth streak shapes the outlook for Hess Midstream’s investment narrative.

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Hess Midstream Investment Narrative Recap

To be a shareholder in Hess Midstream, one must believe in the durability of fee-based revenues from long-term contracts and stable cash flows tied to Bakken production, with the recent dividend hike reinforcing this reliability. The 2.4% increase in the quarterly dividend and strong Q3 EBITDA demonstrate operational strength, but they do not significantly shift the near-term outlook, Chevon’s Bakken production plans remain the key catalyst, while dependency on upstream volumes and limited geographic diversification are still the top risks.

The recently completed share buyback of 1,764,839 shares for US$70 million stands out as the most relevant corporate action alongside the dividend increase, highlighting management’s capital allocation priorities. This repurchase reinforces Hess Midstream’s commitment to shareholder returns, supporting the investment case predicated on predictable cash generation and ongoing contract security, as long as throughput volumes from the Bakken remain resilient.

However, with Hess Midstream’s heavy reliance on Chevron-controlled Bakken production, investors should also be aware that if Chevron’s capital allocation priorities or drilling commitment change ...

Read the full narrative on Hess Midstream (it's free!)

Hess Midstream's narrative projects $2.1 billion revenue and $769.1 million earnings by 2028. This requires 9.8% yearly revenue growth and a $478.2 million earnings increase from $290.9 million currently.

Uncover how Hess Midstream's forecasts yield a $37.00 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided six fair value estimates for Hess Midstream, ranging widely from US$11.87 to US$73.79 per share. Your view on the sustainability of Bakken throughput will shape how you interpret these valuations and the company’s operational risks, explore how these perspectives can inform your own outlook.

Explore 6 other fair value estimates on Hess Midstream - why the stock might be worth over 2x more than the current price!

Build Your Own Hess Midstream Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hess Midstream research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Hess Midstream research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hess Midstream's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.