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Hess Midstream Slides as Chevron Deal Resets Fees and Points to Lower 2027 EBITDA

Investivoq PriceTracker

Hess Midstream LP (HESM) is down 15.7% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to a major transaction with Chevron that changes HESM’s economics even as it broadens the company beyond the Bakken. Investors seem focused on lower Bakken tariff rates, Chevron’s expected rig reduction, and preliminary 2027 EBITDA guidance that sits well below the company’s updated 2026 range.

Details:

  • Hess Midstream announced on October 6, 2026 that it will acquire Chevron’s DJ Basin crude oil and gas gathering and storage assets, while Chevron will contribute its HESM ownership interests and general partner stake for cancellation.
  • As part of the deal, HESM will amend Bakken commercial agreements with Chevron, reducing crude oil and gas gathering and processing tariffs and extending those contracts through 2045.
  • Chevron is expected to move from three drilling rigs to two in the Bakken in December 2026, and HESM said Bakken throughput volumes are expected to decline by about 5% in 2027 before generally flattening from 2028.
  • HESM updated 2026 Adjusted EBITDA guidance to $1.225 billion to $1.250 billion, then introduced preliminary 2027 Adjusted EBITDA guidance of $850 million to $950 million, while saying 2027 distributions are expected to be maintained at fourth-quarter 2026 levels rather than continue prior growth targets.

    • Sources:

    Hess Midstream, SEC, Chevron

    Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

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    $HESM Hedge Fund Activity

    We have seen 143 institutional investors add shares of $HESM stock to their portfolio, and 107 decrease their positions in their most recent quarter.

    Here are some of the largest recent moves:

    • BLACKSTONE INC. added 2,139,055 shares (+58.7%) to their portfolio in Q2 2026, for an estimated $80,428,468
    • JPMORGAN CHASE & CO added 1,906,588 shares (+inf%) to their portfolio in Q2 2026, for an estimated $71,687,708
    • TWO SIGMA INVESTMENTS, LP added 1,469,793 shares (+717.3%) to their portfolio in Q2 2026, for an estimated $55,264,216
    • KAYNE ANDERSON CAPITAL ADVISORS LP removed 1,099,530 shares (-72.8%) from their portfolio in Q2 2026, for an estimated $41,342,328
    • ALPS ADVISORS INC removed 1,049,017 shares (-3.5%) from their portfolio in Q2 2026, for an estimated $39,443,039
    • LAZARD ASSET MANAGEMENT LLC added 1,022,538 shares (+1157.8%) to their portfolio in Q2 2026, for an estimated $38,447,428
    • BANK OF NEW YORK MELLON CORP added 968,990 shares (+25.8%) to their portfolio in Q2 2026, for an estimated $36,434,024

    To track hedge funds' stock portfolios, check out Investivoq's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Investivoq API 13F endpoint.

    $HESM Price Targets

    Multiple analysts have issued price targets for $HESM recently. We have seen 2 analysts offer price targets for $HESM in the last 6 months, with a median target of $35.0.

    Here are some recent targets:

    • Robert Kad from Morgan Stanley set a target price of $38.0 on 06/10/2026
    • John Mackay from Goldman Sachs set a target price of $32.0 on 04/20/2026

    This article is not financial advice. See Investivoq's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.