Hess Midstream Partners

What Hess Midstream Partners does

Hess Midstream Partners LP (NYSE: HESM) is a Delaware-domiciled, fee-based midstream energy infrastructure company headquartered in Houston, Texas, that owns and operates an integrated asset network in the Bakken and Three Forks shale plays of North Dakota's Williston Basin. Its footprint spans approximately 2,300 miles of gathering pipelines (570 miles of crude oil, 1,410 miles of natural gas and NGLs, 300 miles of produced water), the 400,000 Mcf/day Tioga Gas Plant, the 200,000 Mcf/day Little Missouri Four (LM4) plant held in a 50/50 joint venture with Targa Resources, the Ramberg Terminal Facility (285,000 bbl/day redelivery), the Tioga Rail Terminal (140,000 bbl/day crude, 30,000 bbl/day NGL) with BNSF Railway access, and the 330,000-barrel Mentor propane storage cavern. Service lines are organized into Gathering, Processing & Storage, and Terminaling & Export segments that together move crude, natural gas, NGLs, and produced water from the well pad to market.

The company's revenue model is subscription-equivalent: substantially all revenue (approximately 95-96% per management commentary) flows through long-term, fee-based commercial agreements with Chevron carrying minimum volume commitments set at 80% of nominations on a three-year rolling basis, annual CPI-linked fee escalators capped at 3%, and fee recalculation mechanics. Contracts were extended in 2024 for an additional 10-year Secondary Term running through December 31, 2033. Q1 2026 reported revenue was $390.1 million with $299.8 million of Adjusted EBITDA (Q4 2025 revenue $404.2 million), implying TTM revenue of approximately $1.62 billion and FY2025 Adjusted EBITDA of $1.238 billion at ~75-83% EBITDA margins.

Following Chevron Corporation's $53 billion acquisition of Hess Corporation in July 2025, Chevron became Hess Midstream's sponsor with a ~37.7% noncontrolling interest held through Hess Midstream Operations LP. GIP fully exited via two secondary offerings in February and May 2025 totaling ~$1.05 billion in gross proceeds to GIP. The full leadership team (CEO, CFO, COO, General Counsel) was replaced between July and September 2025 with internal Hess/Chevron personnel, and 2026 capital intensity has been cut to approximately $100 million (down roughly one-third) with $910-960 million of Adjusted Free Cash Flow guidance (~20% YoY growth), supporting a 7.91% dividend yield on 39 consecutive quarterly distribution increases.

Name

Hess Midstream Partners

Legal name

Hess Midstream LP

Website

https://hessmidstream.com

Company type

Public

Founded year

2017

Operating status

Operating

Headcount range

101–250 employees

Short description

Hess Midstream Partners is a fee-based, publicly traded (NYSE: HESM) midstream energy company that owns and operates an integrated gathering, processing, storage, and terminaling network in the Bakken and Three Forks shale plays of North Dakota, primarily serving Chevron under long-term take-or-pay contracts through 2033.

Ownership category

akta.pro rank

Product category

Midstream Energy Services

NAICS

Pipeline Transportation of Crude Oil (486110), Other Pipeline Transportation (4869), Petroleum Bulk Stations and Terminals (424710)

SIC

Pipe Lines (No Natural Gas) (4610), Wholesale-Petroleum Bulk Stations & Terminals (5171)

akta.pro primary industry

Wellsite Gathering & Header Systems (Manifolds, Trunklines) (TLAGAJAI)

akta.pro secondary industries

Gas Pipeline & Midstream Asset Management (EUAEAMAF), NGL/LPG Trunkline / Transmission Pipelines (Interstate/Long-Haul) (TLAGAEAI), Pipeline Operations, Integrity & Control (SCADA, Pigging, Leak Detection) (EUALADAK), Field Treating & Separation (Heater Treaters, Separators, LACT) (EUALACAI)

Keywords

• Midstream energy services
• Crude oil gathering
• Natural gas processing
• NGL fractionation
• Produced water handling

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Supply Chain, Others

Revenue model

1. Fee-based Midstream Services: Substantially all revenues generated through long-term, fee-based commercial agreements with Chevron featuring minimum volume commitments (MVCs), annual CPI-linked fee escalators, and fee recalculation mechanisms. Services include oil gathering, gas gathering, processing and fractionation, storage, terminaling/export, and water handling. Approximately 95-96% of revenues from Chevron-related contracts.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Hess Midstream Partners LP is a fee-based, growth-oriented midstream company that owns, operates, and develops oil, natural gas, and produced water handling assets primarily in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. The company provides integrated midstream services spanning gathering, processing and fractionation, storage, terminaling and export, and water handling through long-term contracts with Chevron (approximately 96% of revenues) and third-party producers.

Product overview

Hess Midstream Partners LP is a fee-based, growth-oriented midstream company organized as a master limited partnership that owns and operates three core business segments: Gathering Services (oil, gas, and water gathering pipelines spanning nearly 2,300 miles), Processing & Storage Services (including the Tioga Gas Plant and LM4 joint venture with Targa Resources), and Terminaling & Export Services (including the Ramberg Terminal Facility and Tioga Rail Terminal). The company provides integrated midstream value chain services from well pad to market, primarily serving Chevron and third-party crude oil and natural gas producers in the Bakken and Three Forks Shale plays in North Dakota's Williston Basin.

Differentiator

Problem solved

Functional benefit

Products and services

• Gathering Services

Quantifiable outcome

• Dividend yield of approximately 8%
• +4 more outcomes

Named customers2 records

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

One partnership is on record.

• Targa Resources CorpcoreStrategic or Co-development Partner50/50 joint venture for the Little Missouri Four (LM4) gas processing plant. Targa operates the plant while Hess Midstream owns 100,000 Mcf net per day of the plant's 200,000 Mcf gross per day processing capacity. The plant has direct residue gas and NGL pipeline connections.

Scale indicators18 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• Phillips 66 Partners (now part of Phillips 66): MLP providing crude oil, NGL, and refined petroleum products transportation and terminaling services. Comparable as a sponsor-aligned midstream entity with long-term contracts and integrated gathering-to-market infrastructure.
• Enbridge Inc. One of North America's largest midstream operators with significant crude oil, natural gas, and NGL pipeline systems, including Bakken-area assets. Comparable as a diversified midstream incumbent with long-term fee-based contracts and substantial scale advantages.
• MPLX LP: Large-scale diversified midstream MLP with crude oil, NGL, and natural gas gathering and processing operations. Comparable for its fee-based revenue model, contract structure with minimum volume commitments, and integrated midstream value chain.
• Williams Companies Inc. Major natural gas-focused midstream operator with extensive gathering, processing, and transportation infrastructure. Comparable for its fee-based contracts, gas processing operations, and integrated midstream service offering.
• Energy Transfer LP: Large diversified midstream operator with crude oil, NGL, natural gas, and refined product pipelines across major U.S. basins. Comparable for its integrated midstream platform, fee-based revenue model, and processing/gathering operations.
• Plains All American Pipeline LP: Major crude oil-focused midstream operator with extensive pipeline gathering, transportation, and terminaling infrastructure. Comparable for its crude oil gathering operations and terminaling facilities similar to Ramberg and Tioga Rail Terminal.

Direct peers

• Targa Resources Corp. NGL-focused midstream operator and 50/50 joint venture partner with Hess Midstream in the LM4 gas processing plant. Direct comparable given overlapping NGL processing, gas gathering, and fractionation operations in the Bakken and adjacent basins.
• Crestwood Equity Partners: Midstream partnership with significant Bakken and Three Forks natural gas, NGL, and water gathering/processing assets. Highly comparable as a Bakken-focused midstream operator with similar fee-based contracts and processing infrastructure.
• ONEOK Inc. Midstream operator with major NGL and natural gas pipelines including the Elk Creek Pipeline that connects to LM4. Comparable as a fee-based midstream provider with significant Bakken-area exposure and long-term volume commitments from producers.
• Western Midstream Partners LP: Midstream partnership with concentrated oil and gas gathering, processing, and transportation assets primarily in the Permian Basin. Comparable as a sponsor-aligned, basin-concentrated midstream entity with similar fee-based contract structures.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries1 record

Funding overview

Funding rounds8 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hess Midstream Partners