Hess Midstream: It Passed The Test The Bears Said It Would Fail

Hess Midstream (HESM) remains a compelling Buy, offering a 7.93% forward yield and the sector’s cheapest EV/EBITDA multiple. Q2 2026 saw earnings and free cash flow growth, margin expansion to 85%, and another distribution increase, reaffirming robust income stability. Management reaffirmed full-year guidance, targets 5% annual distribution growth through 2028, and is on track to reduce leverage to 2.5x by 2028. Counterparty risk with Chevron and contract resets post-2033 are notable, but HESM’s risk-reward profile stands out among midstream peers. Hess Midstream Update Back on May 30, I rated Hess Midstream ( HESM ) a Buy, because I viewed its 8% yield backed by Chevron as too good to pass up.