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Hess Midstream LPHESM +1.39%65 Owner Earnings per Share (TTM) is 3.96 as of Mar. 2026, which is 72% below its 10-year median of 14.08. GuruFocus rates HESM with a GF Score™ of 65/100 and a GF Value™ of $24.34 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 452 Oil & Gas companies, Hess Midstream LP ranks better than 55.53% on this metric.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
Hess Midstream LP's Owner Earnings per Share (TTM) ended in Mar. 2026 was $3.96. It's Price-to-Owner-Earnings ratio for today is 10.31.
The historical rank and industry rank for Hess Midstream LP's Owner Earnings per Share (TTM) or its related term are showing as below:
HESM'
s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 9.28 Med: 14.08 Max: 301.71
Current: 10.3
Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.
Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.
Hess Midstream LP Owner Earnings per Share (TTM) Related Terms
Hess Midstream LP Owner Earnings per Share (TTM) Historical Data
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The historical data trend for Hess Midstream LP's Owner Earnings per Share (TTM) 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.
Hess Midstream LP Owner Earnings per Share (TTM) Chart
HESM vs PAGP, GLNG, INSW: Owner Earnings per Share (TTM) Comparison
For the Oil & Gas Midstream subindustry, Hess Midstream LP's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hess Midstream LP's Price-to-Owner-Earnings distribution charts can be found below:
* The bar in red indicates where Hess Midstream LP's Price-to-Owner-Earnings falls into.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income.
Hess Midstream LP's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2026 was $119 Mil.
4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $191 Mil
It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.
The following shows how to get maintenance capital expenditure.
First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.
Hess Midstream LP's 5-Year Average Maintenance Capital Expenditure = $191 Mil
5. "Change In Working Capital" is from cashflow statement. Hess Midstream LP's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2026 was $-6 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.
* 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.
What does a Owner Earnings per Share (TTM) of 3.96 mean?
Hess Midstream LP (HESM) has a Owner Earnings per Share (TTM) of 3.96 as of Mar. 2026. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on Hess Midstream LP. This is 72% below median its historical median of 14.08. Over the past decade, Hess Midstream LP's Owner Earnings per Share (TTM) has ranged from 9.28 to 301.71. According to the industry distribution chart, Hess Midstream LP ranks #201 out of 452 companies in the Oil & Gas industry, placing it in the top 44.5%.
Is Hess Midstream LP's Owner Earnings per Share (TTM) too high?
Hess Midstream LP's current Owner Earnings per Share (TTM) of 3.96 is 72% below median its 10-year median of 14.08. Over the past 10 years, this metric has ranged from a low of 9.28 to a high of 301.71. The Oil & Gas industry median Owner Earnings per Share (TTM) is 11.51. Hess Midstream LP's value of 3.96 is 65.6% below this industry median. Based on the distribution chart, Hess Midstream LP ranks #201 out of 452 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Hess Midstream LP has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hess Midstream LP's Owner Earnings per Share (TTM) compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #201 out of 452 companies for Owner Earnings per Share (TTM). This puts Hess Midstream LP in the upper half of its industry. The industry median Owner Earnings per Share (TTM) is 11.51. Hess Midstream LP's value of 3.96 is 65.6% below this benchmark. Historically, Hess Midstream LP's own Owner Earnings per Share (TTM) has ranged from 9.28 to 301.71 over the past decade. While the company's 10-year median is 14.08 vs. the industry median of 11.51, 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 Owner Earnings per Share (TTM) for an Oil & Gas company?
The median Owner Earnings per Share (TTM) among Oil & Gas companies is 11.51, based on 452 companies in the industry. Companies in the top quartile (top 25%) have a Owner Earnings per Share (TTM) significantly above this median, while those in the bottom quartile fall well below. However, Owner Earnings per Share (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hess Midstream LP's current Owner Earnings per Share (TTM) of 3.96 is 65.6% 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 Owner Earnings per Share (TTM) mean?
A high Owner Earnings per Share (TTM) can signal that a stock is expensive relative to its fundamentals. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on Hess Midstream LP. For the Oil & Gas industry, the median Owner Earnings per Share (TTM) is 11.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current Owner Earnings per Share (TTM) is 3.96, which is 72% below median its own 10-year median of 14.08. 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 $24.34, compared to a current price of $40.83 — trading 67.7% above its estimated fair value. The current Owner Earnings per Share (TTM) is 3.96, which is 72% below median its 10-year median of 14.08 and 65.6% below the Oil & Gas industry median of 11.51. Hess Midstream LP's overall GF Score™ is 65/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Owner Earnings per Share (TTM) calculated?
Owner Earnings per Share (TTM) is calculated from a company's financial statements. For Hess Midstream LP (HESM), the current Owner Earnings per Share (TTM) is 3.96 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 $40.83 is trading 67.7% above its estimated GF Value™ of $24.34.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
Owner Earnings per Share (TTM): 3.96 (72% below median its 10-year median of 14.08)
GF Value™: $24.34 vs. price of $40.83 (67.7% above fair value)
Industry Position: 65.6% below the Oil & Gas median (#201 of 452)
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.
65GF Score
Get the complete analysis for HESM
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