Hess Midstream LP (Hess Midstream LP) Interest Coverage : 4.40 (As of Dec. 2023)

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What is Hess Midstream LP Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Hess Midstream LP's Operating Income for the three months ended in Dec. 2023 was $210 Mil. Hess Midstream LP's Interest Expense for the three months ended in Dec. 2023 was $-48 Mil. Hess Midstream LP's interest coverage for the quarter that ended in Dec. 2023 was 4.40. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Hess Midstream LP interest coverage is 4.57, which is low.

The historical rank and industry rank for Hess Midstream LP's Interest Coverage or its related term are showing as below:

HESM' s Interest Coverage Range Over the Past 10 Years
Min: 4.56 Med: 7 Max: 147.36
Current: 4.57

HESM's Interest Coverage is ranked worse than
61.79% of 759 companies
in the Oil & Gas industry
Industry Median: 6.73 vs HESM: 4.57

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Hess Midstream LP Interest Coverage Historical Data

The historical data trend for Hess Midstream LP's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Hess Midstream LP Interest Coverage Chart

Hess Midstream LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.04

6.09

6.90

5.30

4.56

Hess Midstream LP Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															4.54	4.52	4.80	4.40	4.58

Competitive Comparison of Hess Midstream LP's Interest Coverage

For the Oil & Gas Midstream subindustry, Hess Midstream LP's Interest Coverage, along with its competitors' market caps and Interest Coverage 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's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Hess Midstream LP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hess Midstream LP's Interest Coverage falls into.

Hess Midstream LP Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Hess Midstream LP's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Hess Midstream LP's Interest Expense was $-179 Mil. Its Operating Income was $817 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,199 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	816.9	/	-179
	=	4.56

Hess Midstream LP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Hess Midstream LP's Interest Expense was $-48 Mil. Its Operating Income was $210 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,199 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	210.1	/	-47.8
	=	4.40

The higher the ratio, the stronger the company's Financial Strength is.

Hess Midstream LP (NYSE:HESM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Hess Midstream LP Interest Coverage Related Terms

Thank you for viewing the detailed overview of Hess Midstream LP's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Hess Midstream LP (Hess Midstream LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Hess Midstream LP (NYSE:HESM) » Definitions » Interest Coverage

Comparable Companies

VNOM NS KNTK DHT INSW GLNG TNK HEP GEL LPG TSX:ENB EPD WMB ET LNG OKE MPLX KMI TSX:TRP CQP

Traded in Other Exchanges

N/A

Address

1501 McKinney Street, Houston, TX, USA, 77010

Website

https://www.hessmidstream.com

Hess Midstream LP owns, operates, develops, and acquires a diverse set of midstream assets and provides fee-based services to Hess and third-party customers. It conducts its business through three operating segments: gathering, processing and storage, and terminaling and exporting. The company derives the maximum revenue from the gathering segment. Its gathering segment consists of the following assets namely Natural Gas Gathering and Compression; Crude Oil Gathering and Produced Water Gathering and Disposal.

Executives

Global Infrastructure Investors Ii, Llc	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE PARTNERS, 12 E. 49TH STREET, NEW YORK NY 10017
Hess Corp	director, 10 percent owner	1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Jonathan C. Stein	officer: Chief Financial Officer	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John A. Gatling	officer: President and COO	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Geurt G Schoonman	director	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
James K Lee	director	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Gip Ii Blue Holding, L.p.	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE MANAGEMENT LLC, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Letwin Stephen J J	director	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John B Hess	director, officer: Chairman and CEO	C/O HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Global Infrastructure Gp Ii, L.p.	director, 10 percent owner	12 EAST 49TH STREET, 38TH FLOOR, NEW YORK NY 10017
J Patrick Reddy	director
Hess Infrastructure Partners Gp Llc	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Hess Midstream Gp Llc	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Hess Midstream Gp Lp	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Gip Blue Holding Gp, Llc	director, 10 percent owner	12 EAST 49TH STREET, 38TH FLOOR, NEW YORK NY 10017