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How to Buy Hess Midstream LP (HESM) Shares - Investment in Hess Midstream LP (HESM) Stock

28 August 2025
4 min to read
How to buy Hess Midstream LP (HESM) shares – Investment in Hess Midstream LP (HESM) stock

Thinking about adding energy infrastructure to your portfolio? Hess Midstream LP (HESM) offers a unique opportunity to invest in America's energy backbone. This midstream giant operates the pipelines and processing facilities that keep oil and gas flowing across the Bakken region. With stable fee-based revenues and consistent dividend growth, HESM could be your ticket to energy sector exposure without the commodity price rollercoaster.

📈 Current Market Position and Price Action

As of August 28, 2025, Hess Midstream LP (HESM) trades at $41.42 on the NYSE. The stock has been riding a wave of positive momentum throughout 2025, reaching its all-time high of $44.14 on July 30-31, 2025Market Chameleon.

Mark your calendar: October 29, 2025 is your next critical date. That’s when HESM releases its Q3 earnings report. Historically, these quarterly announcements have moved the needle significantly.

How Earnings Reports Impact HESM Stock

Date Event Price Impact Key Takeaway
July 30, 2025 Q2 Earnings Beat +4.35% premarket EPS of $0.74 vs $0.66 expected
April 2025 Q1 Results Steady climb Revenue growth confirmed
January 2025 Annual Guidance Moderate gains 5% distribution growth target

The pattern is clear: positive earnings surprises create immediate price jumps, while steady performance maintains upward momentum. The July 2025 report triggered a 4.35% premarket surge when HESM beat EPS estimates by 12%AInvest.

📊 6-Month Performance Journey (March-August 2025)

HESM shares have delivered an impressive 13.41% yearly gain with particularly strong performance in recent monthsMarket Chameleon. Here’s the breakdown:

March 2025: ~$36.50 (post-winter consolidation)
May 2025: $39.25 (50-day moving average breakthrough)
July 2025: $44.14 (all-time high after stellar Q2)
August 2025: $41.42 (healthy pullback from highs)

The stock gained 4.96% in the past month alone, demonstrating sustained bullish momentum. Technical indicators show HESM trading comfortably above both its 50-day ($39.25) and 200-day ($38.62) moving averagesCoinCodex.

Why This Momentum Matters

  1. Operational excellence – Throughput volumes increased across all systems
  2. Financial discipline – 80% EBITDA margins well above 75% target
  3. Strategic clarity – Resolution of Chevron merger uncertainty

🔮 Price Forecast: 2025-2030 Outlook

Based on current analyst projections and fundamental analysis, here’s what to expect:

2025 Year-End: $44-46 range (strong holiday season performance)
2026 Target: $48-52 (continued volume growth + expansion)
2028 Projection: $58-65 (market share gains + inflation adjustments)
2030 Vision: $70+ (energy infrastructure demand surge)

Verdict: STRONG BUY for long-term investors. The combination of dividend income (7.12% yield) and capital appreciation makes HESM a compelling hold.

Analysts maintain a bullish stance with price targets ranging from $45 to $48, representing 13.39% upside potential from current levelsZacks Research.

⚠️ Risk Assessment vs. Growth Catalysts

Risks to Consider

  • Regulatory Headwinds: Environmental regulations could increase compliance costsSEC Filing. Legal & Regulatory risks score 11/49 (22%) – above sector average.
  • Credit Constraints: $1.4B in credit facilities with restrictive covenants limit financial flexibilityTipRanks.
  • Market Volatility: 24.53% implied volatility means price swings are expectedBarchart.

Positive Signals for 2025

  • Earnings Momentum: Q2 EPS jumped 25% YoY to $0.74Nasdaq. Q3 consensus is $0.70+.
  • Distribution Growth: 5% annual target with current 7.12% yield provides income stability.
  • Strategic Positioning: Chevron ownership (37.8%) brings institutional backing and stabilityHart Energy.

📋 Step-by-Step: How to Buy Hess Midstream LP (HESM) Shares

Step Action Why It Matters
1 Choose Your Platform Ensure it offers NYSE access and reasonable fees
2 Fund Your Account Start with amount you’re comfortable risking
3 Search “HESM” Use the ticker symbol, not company name
4 Set Order Type Limit order recommended around $41-42
5 Review & Confirm Check commission rates before executing

Pro Tip: Consider dollar-cost averaging – buying smaller amounts regularly rather than one large purchase. This reduces timing risk.

🎯 What Should a Beginner Trader Do Today?

  1. Start Small: Allocate no more than 5-10% of your portfolio to energy stocks
  2. Watch October 29: Q3 earnings could provide entry opportunity if price dips
  3. Reinvest Dividends: That 7.12% yield compounds beautifully over time
  4. Humorous Reality: “Trading HESM is like pipeline maintenance – boring until it’s critically important. Then everyone wishes they owned it!”

💡 Why Pocket Option Makes Sense for HESM Investing

Pocket Option offers unique advantages for energy stock investors:

  • Minimum Deposit: Just $5 lets you start building positions
  • Rapid Verification: KYC completed in minutes with any ID document
  • Flexible Withdrawals: 100+ methods including crypto and e-wallets

The platform’s low barrier to entry makes it perfect for testing energy sector strategies without committing large capital.

🏢 Hess Midstream in 2025: Energy’s Silent Workhorse

Hess Midstream operates critical infrastructure across North Dakota’s Bakken region, processing and transporting oil and gas through nearly 4,000 miles of pipelines. The company’s fee-based model generates stable cash flows regardless of commodity prices.

2025 Interesting Fact: Following the Chevron-Hess merger resolution, HESM’s credit rating was upgraded to BBB- by S&P Global RatingsAInvest, reflecting enhanced financial stability despite industry volatility.

FAQ

What makes HESM different from other energy stocks?

HESM operates midstream infrastructure (pipelines, processing plants) rather than producing oil/gas. This means revenue comes from fees rather than commodity prices, providing more stability.

How often does HESM pay dividends?

Quarterly distributions, currently yielding 7.12% annually. The company targets 5% annual distribution growth.

Is HESM affected by oil price changes?

Minimally. Since they charge fees for services rather than selling commodities, their revenue is more stable than producers.

What was the Chevron merger impact?

Chevron now owns 37.8% of HESM, providing institutional stability and potentially better access to capital markets.

How volatile is HESM stock?

Moderate volatility (24-27% range) with beta of 0.55, meaning it's less volatile than the overall market.

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