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Hess Midstream LPHESM +0.40%68 Debt-to-EBITDA is 3.15 as of Mar. 2026, which is 5% above its 10-year median of 3.00. GuruFocus rates HESM with a GF Score™ of 68/100 and a GF Value™ of $24.36 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 704 Oil & Gas companies, Hess Midstream LP ranks worse than 64.2% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Hess Midstream LP's Debt-to-EBITDA or its related term are showing as below:
HESM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.94 Med: 3 Max: 3.36
Current: 3.03
During the past 13 years, the highest Debt-to-EBITDA Ratio of Hess Midstream LP was 3.36. The lowest was 1.94. And the median was 3.00.
HESM's Debt-to-EBITDA is ranked worse than 64.2% of 704
companies
in the Oil & Gas industry
Industry Median: 2.005
vs HESM: 3.03
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Hess Midstream LP Debt-to-EBITDA Related Terms
Hess Midstream LP Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Hess Midstream LP's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HESM vs PAGP, GLNG, INSW: Debt-to-EBITDA Comparison
For the Oil & Gas Midstream subindustry, Hess Midstream LP's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hess Midstream LP Debt-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hess Midstream LP's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Hess Midstream LP's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Hess Midstream LP (HESM) has a Debt-to-EBITDA of 3.15 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Hess Midstream LP. This is near median its historical median of 3.00. Over the past decade, Hess Midstream LP's Debt-to-EBITDA has ranged from 1.94 to 3.36. According to the industry distribution chart, Hess Midstream LP ranks #452 out of 704 companies in the Oil & Gas industry, placing it in the top 64.2%.
Is Hess Midstream LP's Debt-to-EBITDA too high?
Hess Midstream LP's current Debt-to-EBITDA of 3.15 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.94 to a high of 3.36. The Oil & Gas industry median Debt-to-EBITDA is 2.01. Hess Midstream LP's value of 3.15 is 57.1% above this industry median. Based on the distribution chart, Hess Midstream LP ranks #452 out of 704 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Hess Midstream LP has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hess Midstream LP's Debt-to-EBITDA compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #452 out of 704 companies for Debt-to-EBITDA. This places Hess Midstream LP in the lower half of its industry. The industry median Debt-to-EBITDA is 2.01. Hess Midstream LP's value of 3.15 is 57.1% above this benchmark. Historically, Hess Midstream LP's own Debt-to-EBITDA has ranged from 1.94 to 3.36 over the past decade. While the company's 10-year median is 3.00 vs. the industry median of 2.01, Hess Midstream LP has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 2.01, based on 704 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hess Midstream LP's current Debt-to-EBITDA of 3.15 is 57.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Hess Midstream LP. For the Oil & Gas industry, the median Debt-to-EBITDA is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current Debt-to-EBITDA is 3.15, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hess Midstream LP stock overvalued right now?
Based on GuruFocus' analysis, Hess Midstream LP (HESM) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.36, compared to a current price of $40.64 — trading 66.8% above its estimated fair value. The current Debt-to-EBITDA is 3.15, which is near median its 10-year median of 3.00 and 57.1% above the Oil & Gas industry median of 2.01. Hess Midstream LP's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Hess Midstream LP (HESM), the current Debt-to-EBITDA is 3.15 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hess Midstream LP (HESM) Overvalued in 2026?
Based on GuruFocus' analysis, Hess Midstream LP stock appears to be overvalued.
The current stock price of $40.64 is trading 66.8% above its estimated GF Value™ of $24.36.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
Debt-to-EBITDA: 3.15 (near median its 10-year median of 3.00)
GF Value™: $24.36 vs. price of $40.64 (66.8% above fair value)
Industry Position: 57.1% above the Oil & Gas median (#452 of 704)
No single metric tells the full story. See the HESM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hess Midstream LP is a fee-based, growth-oriented limited partnership that owns, operates, develops, and acquires a portfolio of midstream assets. The company provides fee-based services to Chevron Corporation and generates all of its revenue by charging fees for gathering, compressing, and processing natural gas, fractionating NGLs, gathering, terminaling, loading, and transporting crude oil and NGLs, storing and terminaling propane, and gathering and disposing of produced water. It operates through gathering, processing, and storage, and terminaling and export segments, with the gathering segment contributing the maximum share of revenue and comprising natural gas gathering and compression, as well as crude oil gathering and produced water gathering and disposal assets.
68GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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