Hess Midstream LP

High-margin, fee-based midstream partnership generating exceptional cash flow under long-term Chevron contracts.

Strengths

• Top-decile cash/margins: FCF margin 44.9% (100th pct), operating margin 62.2% (96.7th pct), net margin 21.8% (84.1st pct)
• Strong returns and growth: ROA 8.0% (82.4th pct), net income +58%, revenue +8.4% on contracted Bakken infrastructure

Risks

• Heavy single-counterparty dependence on Chevron and Bakken volumes
• Minimal cash on hand ($1.9M) and MLP distribution model leaves limited balance-sheet cushion

Notable findings

• Weak liquidityCurrent ratio 0.85 (<1)