Hess Midstream LP Business Summary

Hess Midstream LP (HESM) operates as a fee-based, growth-oriented midstream company primarily serving the Bakken and Three Forks Shale plays in North Dakota. The company generates revenue through long-term, fixed-fee commercial agreements with minimum volume commitments (MVCs), insulating its cash flow from commodity price volatility. Its operations are divided into three primary segments: Gathering (natural gas, crude oil, and produced water), Processing and Storage (natural gas and natural gas liquids), and Terminaling and Export (crude oil and NGLs). Following the 2024-2025 merger of its parent Hess Corporation into Chevron, HESM has transitioned to a capital-light model, significantly reducing capital expenditures to approximately $150 million for 2026 while maintaining high-availability infrastructure. HESM competes directly with midstream giants such as Antero Midstream (AM), ONEOK (OKE), and Enterprise Products Partners (EPD). Within this landscape, HESM distinguishes itself as a specialized, high-yield infrastructure provider with a unique strategic alignment to Chevron’s upstream Bakken production, offering superior distribution growth visibility compared to broader, more diversified peers. Originally established in 2014 as a joint venture between Hess Corporation and Global Infrastructure Partners (GIP), the company is now under the strategic control of Chevron, which holds a 37.8% consolidated interest. The leadership team is led by Chief Executive Officer Jonathan C. Stein, who previously served as the company’s CFO, and Chief Financial Officer Michael J. Chadwick, a veteran of the Hess organization since 2000. Michael S. Bast serves as President and Chief Operating Officer, overseeing the technical and operational integration of the Bakken assets. The Board of Directors is chaired by Kristi H. McCarthy, a Chevron executive, and includes notable independent directors such as David W. Niemiec (formerly of Dillon, Read & Co.) and Stephen J.J. Letwin (former CEO of IAMGOLD). Institutional confidence is underscored by significant holdings from Invesco Ltd., which disclosed a 5.1% stake in early 2026, and continued backing from Global Infrastructure Partners.