Hess Midstream Partners LP (NYSE:HESM) to Issue Quarterly Dividend of $0.76

Hess Midstream Partners LP (NYSE:HESM) announced a quarterly dividend on Monday, January 26th. Stockholders of record on Thursday, February 5th will be paid a dividend of 0.7641 per share on Friday, February 13th. This represents a c) dividend on an annualized basis and a dividend yield of 8.7%. The ex-dividend date is Thursday, February 5th. This is a 1.2% increase from Hess Midstream Partners’s previous quarterly dividend of $0.75.

Hess Midstream Partners has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 8 years. Hess Midstream Partners has a dividend payout ratio of 92.3% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities analysts expect Hess Midstream Partners to earn $2.93 per share next year, which means the company may not be able to cover its $3.01 annual dividend with an expected future payout ratio of 102.7%.

Hess Midstream Partners Price Performance

NYSE:HESM opened at $35.13 on Tuesday. Hess Midstream Partners has a 52 week low of $31.63 and a 52 week high of $44.14. The company has a debt-to-equity ratio of 8.83, a quick ratio of 0.75 and a current ratio of 0.75. The firm’s 50-day simple moving average is $34.05 and its 200 day simple moving average is $36.29. The firm has a market cap of $7.30 billion, a price-to-earnings ratio of 12.46 and a beta of 0.61.

Hess Midstream Partners (NYSE:HESM) last posted its quarterly earnings data on Monday, November 3rd. The company reported $0.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.73 by $0.02. Hess Midstream Partners had a net margin of 20.46% and a return on equity of 69.03%. The firm had revenue of $420.90 million during the quarter, compared to the consensus estimate of $424.36 million. During the same quarter in the previous year, the firm posted $0.63 EPS. The business’s revenue for the quarter was up 11.2% compared to the same quarter last year. As a group, sell-side analysts predict that Hess Midstream Partners will post 2.5 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. The Goldman Sachs Group started coverage on Hess Midstream Partners in a research report on Tuesday, September 30th. They set a “neutral” rating and a $36.00 price target on the stock. Zacks Research upgraded Hess Midstream Partners from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 18th. Weiss Ratings restated a “hold (c)” rating on shares of Hess Midstream Partners in a research report on Monday, December 29th. Wall Street Zen downgraded Hess Midstream Partners from a “buy” rating to a “hold” rating in a research note on Saturday, November 15th. Finally, Raymond James Financial downgraded shares of Hess Midstream Partners from an “outperform” rating to a “market perform” rating in a research note on Monday, January 5th. Eight analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $40.57.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.

Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.