HESM (Hess Midstream LP) Moat Score: 5/10 (As of Jul. 01, 2026)


HESM Hess Midstream LP HESM
66 GF Score
Price $37.60
GF Value $24.42
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Hess Midstream LP Moat Score?

Hess Midstream LP HESM +0.70% 66 Moat Score is 5 as of Jul. 01, 2026. GuruFocus rates HESM with a GF Score™ of 66/100 and a GF Value™ of $24.42 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,041 Oil & Gas companies, Hess Midstream LP ranks better than 94.24% on this metric.

Hess Midstream LP has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Hess Midstream LP has Narrow Moat: Hess Midstream LP has a solid narrow moat with durable cost advantages from economies of scale and a strong distribution network. However, it lacks significant brand strength or customer switching costs, limiting its competitive edge to a solid but not wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Hess Midstream LP might have Narrow Moat - Solid narrow moat.

Hess Midstream LP  (NYSE:HESM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Hess Midstream LP Moat Score Related Terms

HESM vs PAGP, GLNG, INSW: Moat Score Comparison

For the Oil & Gas Midstream subindustry, Hess Midstream LP's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Oil & Gas Industry

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

* The bar in red indicates where Hess Midstream LP's Moat Score falls into.


HESM
66GF Score
Hess Midstream LP HESM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Hess Midstream LP (HESM) has a Moat Score of 5 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Hess Midstream LP ranks #60 out of 1041 companies in the Oil & Gas industry, placing it in the top 5.8%.
Is Hess Midstream LP's Moat Score too high?
Hess Midstream LP's current Moat Score is 5. The Oil & Gas industry median Moat Score is 1.00. Hess Midstream LP's value of 5 is 400% above this industry median. Based on the distribution chart, Hess Midstream LP ranks #60 out of 1041 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Hess Midstream LP has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hess Midstream LP's Moat Score compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #60 out of 1041 companies for Moat Score. This places Hess Midstream LP in the top 6% of its industry — outperforming the majority of peers. The industry median Moat Score is 1.00. Hess Midstream LP's value of 5 is 400% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Oil & Gas company?
The median Moat Score among Oil & Gas companies is 1.00, based on 1,041 companies in the industry. Companies in the top quartile (top 25%) have a Moat Score significantly above this median, while those in the bottom quartile fall well below. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hess Midstream LP's current Moat Score of 5 is 400% 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. For the Oil & Gas industry, the median Moat Score is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current Moat Score is 5. 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 $24.42, compared to a current price of $37.60 — trading 54% above its estimated fair value. The current Moat Score is 5 and 400% above the Oil & Gas industry median of 1.00. Hess Midstream LP's overall GF Score™ is 66/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Hess Midstream LP (HESM), the current Moat Score is 5 as of Jul. 01, 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 $37.60 is trading 54% above its estimated GF Value™ of $24.42. GuruFocus considers Hess Midstream LP to be Significantly Overvalued.

Key valuation signals for HESM:

  • Moat Score: 5
  • GF Value™: $24.42 vs. price of $37.60 (54% above fair value)
  • GF Score™: 66/100 with 8 warning signs
  • Industry Position: 400% above the Oil & Gas median (#60 of 1041)

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 Business Description

Industry EnergyOil & Gas
Address 1400 Smith Street, Houston, TX, USA, 77002
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.
66GF Score

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$37.60
Price
$24.42
GF Value