Hess Midstream LPHESM -0.55%67 Interest Coverage is 4.30 as of Mar. 2026, which is 29% below its 10-year median of 6.07. GuruFocus rates HESM with a GF Score™ of 67/100 and a GF Value™ of $24.43 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 731 Oil & Gas companies, Hess Midstream LP ranks worse than 55.81% on this metric.
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 Mar. 2026 was $238 Mil. Hess Midstream LP's Interest Expense for the
three
months ended in Mar. 2026 was $-55 Mil.
Hess Midstream LP's interest coverage for the quarter that ended in Mar. 2026 was 4.30.
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 4.49, 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: 4.47 Med: 6.07 Max: 147.36
Current: 4.49
HESM's Interest Coverage is ranked worse than 55.81% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs HESM: 4.49
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
Hess Midstream LP Interest Coverage Historical Data
* Premium members only.
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.
HESM vs PAGP, GLNG, INSW: Interest Coverage Comparison
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 Interest Coverage vs 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.
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:
* 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.
Hess Midstream LP (HESM) has a Interest Coverage of 4.30 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hess Midstream LP and its competitors. This is 29% below median its historical median of 6.07. Over the past decade, Hess Midstream LP's Interest Coverage has ranged from 4.47 to 147.36. According to the industry distribution chart, Hess Midstream LP ranks #408 out of 731 companies in the Oil & Gas industry, placing it in the top 55.8%.
Is Hess Midstream LP's Interest Coverage too high?
Hess Midstream LP's current Interest Coverage of 4.30 is 29% below median its 10-year median of 6.07. Over the past 10 years, this metric has ranged from a low of 4.47 to a high of 147.36. The Oil & Gas industry median Interest Coverage is 5.89. Hess Midstream LP's value of 4.30 is 27% below this industry median. Based on the distribution chart, Hess Midstream LP ranks #408 out of 731 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Hess Midstream LP has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hess Midstream LP's Interest Coverage compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #408 out of 731 companies for Interest Coverage. This places Hess Midstream LP in the lower half of its industry. The industry median Interest Coverage is 5.89. Hess Midstream LP's value of 4.30 is 27% below this benchmark. Historically, Hess Midstream LP's own Interest Coverage has ranged from 4.47 to 147.36 over the past decade. While the company's 10-year median is 6.07 vs. the industry median of 5.89, Hess Midstream LP has consistently been below 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 Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 731 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hess Midstream LP's current Interest Coverage of 4.30 is 27% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hess Midstream LP and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current Interest Coverage is 4.30, which is 29% below median its own 10-year median of 6.07. 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 $24.43, compared to a current price of $37.67 — trading 54.2% above its estimated fair value. The current Interest Coverage is 4.30, which is 29% below median its 10-year median of 6.07 and 27% below the Oil & Gas industry median of 5.89. Hess Midstream LP's overall GF Score™ is 67/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Hess Midstream LP (HESM), the current Interest Coverage is 4.30 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 $37.67 is trading 54.2% above its estimated GF Value™ of $24.43.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
Interest Coverage: 4.30 (29% below median its 10-year median of 6.07)
GF Value™: $24.43 vs. price of $37.67 (54.2% above fair value)
Industry Position: 27% below the Oil & Gas median (#408 of 731)
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.
67GF Score
Get the complete analysis for HESM
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