HESM · Energy(crude petroleum & natural gas) · 9 years of annual accounts filed with the SEC · latest fiscal year ended 2025-12-31
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Hess Midstream LP reported revenue of $1.6 billion in fiscal 2025, after growing 13.7% a year over the previous 8 years. Its operating margin widened from 45.4% in 2017 to 62.2%. Of the $6.4 billion its operations generated over 9 years, 35.4% went to buybacks and 34.3% back into the business. On the accounting screens, it passes 6 of 7 Piotroski tests and its Beneish M-score is below the -1.78 line; 1 of the six cross-checks between its statements fires.
Revenue, fiscal 20251.6B+13.7% a year over 8 years
Operating margin62.2%gross margin —
Return on invested capital—
Free cash flow after stock pay726.6M44.8% of revenue
Net debt ÷ EBITDA3.1×net debt 3.8B
Piotroski F-score6/7tests of improvement passed
Is it growing?
Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.
RevenueOperating income
0500.0M1.0B1.5B2.0B
2017Revenue 579.5MOperating income 263.1M
2018Revenue 712.7MOperating income 378.2M
2019Revenue 848.3MOperating income 376.6M
2020Revenue 1.1BOperating income 576.5M
2021Revenue 1.2BOperating income 727.2M
2022Revenue 1.3BOperating income 791.2M
2023Revenue 1.3BOperating income 816.9M
2024Revenue 1.5BOperating income 919.0M
2025Revenue 1.6BOperating income 1.0B
201720182019202020212022202320242025
Compound growth a year
3 yrs
5 yrs
8 yrs
Revenue
+8.3%
+8.2%
+13.7%
Operating income
+8.4%
+11.8%
+18.3%
Net income
+61.4%
+71.2%
+30.8%
Falling shares are buybacks: each remaining share owns more of the company.
Does it earn more than its capital costs?
Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.
GrossOperatingNetFree cash flow
0.0%20.0%40.0%60.0%80.0%
2017Operating 45.4%Net 7.1%Free cash flow 33.2%
2018Operating 53.1%Net 9.9%Free cash flow 31.6%
2019Operating 44.4%Net 8.3%Free cash flow 19.4%
2020Operating 52.8%Net 2.2%Free cash flow 31.2%
2021Operating 60.4%Net 3.9%Free cash flow 52.5%
2022Operating 62.0%Net 6.6%Free cash flow 48.8%
2023Operating 60.6%Net 8.8%Free cash flow 47.7%
2024Operating 61.5%Net 14.9%Free cash flow 42.4%
2025Operating 62.2%Net 21.8%Free cash flow 44.9%
201720182019202020212022202320242025
Return on invested capital
Economic profit
Needs a cost of capital, which comes from the valuation below.
Return on equity
—
Return on assets
8.0%
Asset turnover
0.37×
Overheads (SG&A)
1.8% of revenue
Is the profit cash, and where does the cash go?
Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.
Net incomeFree cash flowAfter stock-based pay
0200.0M400.0M600.0M800.0M
2017Net income 41.2MFree cash flow 192.3MAfter stock-based pay 192.1M
2018Net income 70.8MFree cash flow 225.0MAfter stock-based pay 224.1M
2019Net income 70.1MFree cash flow 164.3MAfter stock-based pay 162.8M
2020Net income 24.0MFree cash flow 340.6MAfter stock-based pay 339.1M
2021Net income 46.4MFree cash flow 632.3MAfter stock-based pay 630.9M
2022Net income 83.9MFree cash flow 622.9MAfter stock-based pay 621.3M
2023Net income 118.6MFree cash flow 642.9MAfter stock-based pay 641.2M
2024Net income 223.1MFree cash flow 634.2MAfter stock-based pay 632.4M
2025Net income 352.9MFree cash flow 728.2MAfter stock-based pay 726.6M
201720182019202020212022202320242025
Where 9 years of operating cash went, 2017–2025
6.4B generated by the business. Each band is its share of that total.
Reinvested in the business 34%2.2B
Acquisitions 1%89.2M
Dividends 0%0
Share buybacks 35%2.2B
Kept, or used to pay down debt 29%1.8B
Over the same years it paid 12.2M in stock. 2.2B of the buybacks went beyond offsetting that dilution.
Per share
Shares outstanding
How strong is the balance sheet?
Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.
Net debt
01.0B2.0B3.0B4.0B
2017
2018Net debt 871.8M
2019Net debt 1.8B
2020Net debt 1.9B
2021Net debt 2.6B
2022Net debt 2.9B
2023Net debt 3.2B
2024Net debt 3.5B
2025Net debt 3.8B
201720182019202020212022202320242025
Net debt ÷ EBITDA
3.1×
Interest coverage
— operating income ÷ interest
Current ratio
0.85 current assets ÷ current liabilities
Cash conversion cycle
— collects in 32d
Three classic screens of the accounts
Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.
Piotroski F-score
Is the business improving? Nine yes-or-no tests, this year against last.
6of 7 tests passed
✓ProfitableReturn on assets above zeropassed
✓Cash from operationsOperating cash flow above zeropassed
✓Profitability improvedReturn on assets higher than a year beforepassed
✓Profit backed by cashOperating cash flow above net income (low accruals)passed
✕Less long-term debtLong-term debt as a share of assets fellfailed
✓More liquidCurrent ratio higher than a year beforepassed
–No new sharesShare count did not grow — not reportedno data
–Better gross marginGross margin higher than a year before — not reportedno data
✓Sells more per assetAsset turnover higher than a year beforepassed
Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.
Altman Z''-score
Does the balance sheet look like those of companies that went bankrupt?
The accounts lack a line it needs (retained earnings, current assets or liabilities).
Beneish M-score
Do the accounts resemble those of companies that manipulated their earnings?
-3.03below the -1.78 line
-1.78
Receivables vs sales 0.98+0.90
Gross margin slipping 1.00 (not reported, set to 1)+0.53
Soft assets 1.20+0.49
Sales growth 1.08+0.97
Slower depreciation 0.96+0.11
Overheads vs sales 1.01-0.17
Profit not in cash -0.14-0.67
Leverage rising 1.01-0.33
Where it misleads: fast growth and acquisitions. Sales growth carries a heavy weight, so a company growing 50% a year scores like a suspect without having done anything. It is a screen from a 1999 study, not an accusation.
Where the statements disagree
Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.
Net debt is 3.1 times EBITDA.
Benign
A stable sector with predictable cash flows and comfortable maturities.
Worrying
Little room if earnings fall; the maturity schedule is what to check.
What is it worth, under which assumptions?
A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.
The SEC accounts lack the lines needed for revenue, free cash flow or the share count, so there is no DCF for this company.
What it has filed lately
The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.
Every Form 4 filed in the last twelve months, read line by line: 6 filings by 8 people. Open-market purchases and sales are counted apart from awards, option exercises and shares withheld for taxes.
Bought on the open market—none in the period
Sold on the open market—none in the period
Under pre-arranged plans—of the sales followed a 10b5-1 plan set months earlier
A Form 4 says what happened, when, how many shares and at what price. It does not say why: a sale can be diversification, a tax bill or a plan fixed months earlier, and an award is pay, not a purchase. Nothing here is a reason to buy or sell anything.
Which large funds report holding it
From the Form 13F of the 28 institutions followed on this site, as of the end of their last reported quarter. A 13F is filed up to 45 days later and shows only long positions in US-listed shares.
Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.
