Hess Midstream (HESM) reported first quarter 2026 results that showed higher revenue and net income versus the prior year, while also reaffirming full year earnings and operating guidance, a combination many income focused investors watch closely.

Hess Midstream’s recent earnings announcement comes after a steady share price move, with the stock up 13.10% on a year to date share price basis and a 5 year total shareholder return of 140.87%. This points to momentum that has built over time despite some shorter term pullbacks.

If you are reassessing energy related income ideas after these results, it can also be useful to see what else is moving across the sector and infrastructure space by scanning 36 power grid technology and infrastructure stocks

With the unit price up 13.10% year to date and a 5 year total return of 140.87%, while trading at what some models suggest is a 58% intrinsic discount, is Hess Midstream offering value or is the market already pricing in future growth?

Most Popular Narrative: 4.5% Overvalued

At a last close of $39.19 against a consensus fair value of $37.50, the most followed narrative sees Hess Midstream as slightly ahead of its modeled worth, with that view built on detailed assumptions about future throughput, margins, and capital returns.

Multi-year minimum volume contracts with Hess Corp (now under Chevron), providing highly predictable, inflation-resistant fee-based revenue streams through the late 2030s, which supports stable adjusted EBITDA and consistent dividend/distribution growth.

Read the complete narrative. Read the complete narrative.

Curious what sits behind that confidence in long term contracts and cash flows? The narrative leans on specific growth, margin, and valuation assumptions that sharply frame how much investors are paying for those future distributions without spelling it out in the headline numbers.

Result: Fair Value of $37.50 (OVERVALUED)

However, there are still pressure points to watch, including Hess Midstream’s concentration in the Bakken and its reliance on Chevron’s future drilling plans to support volumes.

Another View: Earnings Power Vs Today’s Price

The consensus narrative flags Hess Midstream as 4.5% overvalued at $39.19 versus a $37.50 fair value, yet the stock trades on a P/E of 13.7x against a fair ratio of 23.3x and a peer average of 39.4x. That gap suggests the market may be building in a meaningful discount, or it may be highlighting future execution risk instead.

To see how this earnings based view compares with current pricing and peers in more detail, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mix of concerns and optimism around Hess Midstream, it makes sense to look at the full picture yourself and decide how comfortable you are with the balance of risks and rewards, starting with 4 key rewards and 2 important warning signs

Looking for more investment ideas?

If Hess Midstream has caught your attention, do not stop there. Broaden your watchlist with a few focused idea lists that could surface your next opportunity.

• Target potential mispricings by scanning companies that combine quality and attractive pricing through the 48 high quality undervalued stocks.
• Strengthen your income focus by reviewing reliable payers using the 12 dividend fortresses before the next payout cycle passes you by.
• Protect your capital by filtering for companies with calmer risk profiles via the 70 resilient stocks with low risk scores so you do not miss steadier options.

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.