Citi Reiterates Buy Rating on Hess Midstream Partners LP (HESM)

Citi analyst Douglas Irwin reiterated a Buy rating and $38.00 price target on Hess Midstream Partners LP (NYSE: HESM).

The analyst commented, "We estimate 2Q24 EBITDA of $278mm, just above the guided $275mm midpoint. We expect higher opex to offset volume tailwinds, resulting in roughly flat sequential EBITDA - HESM guided to expected maintenance costs at the Tioga Gas Plant on top of typically higher seasonal opex. On volumes, HES guided to 2Q Bakken production of 195-200kboe/d, up from 1Q production of ~190kboe/d and implying ~3-5% sequential growth. EIA data points to comparable sequential production growth from the Bakken as a whole. It may be too early for an outright guidance increase, even in the event of a 2Q beat - the current $1,150mm midpoint implies nearly 10% 2H24 EBITDA growth. That said, we wouldn't be surprised to see HESM narrow the range as they have done in years past. We estimate a ~3% distribution increase following the recently completed $100mm buyback, consistent with HESM's capital allocation strategy."

For an analyst ratings summary and ratings history on Hess Midstream Partners LP click here. For more ratings news on Hess Midstream Partners LP click here.

Shares of Hess Midstream Partners LP closed at $37.12 yesterday.

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