HESM Intrinsic Value Calculation – HESS MIDSTREAM LP Reports FY2022 Q4 Earnings Results for Year Ending December 31, 2022
February 13, 2023
Earnings report
HESM Intrinsic Value Calculation – HESS MIDSTREAM LP ($NYSE:HESM), a publicly traded midstream energy company, reported its earnings results for the fourth quarter of FY2022, ending on December 31, 2022, on January 25, 2023. The company generated a total revenue of USD 21.8 million which was a 29.0% increase from the same quarter of the prior year. Net income for the quarter was USD 314.6 million, a 0.5% decrease year over year. HESS MIDSTREAM LP is an American midstream energy company focused on pipeline transportation, storage and processing of hydrocarbons in the continental United States. The increase was driven by higher volumes of crude oil, natural gas liquids and natural gas production, as well as higher natural gas prices.
Net income for the quarter was USD 314.6 million, a 0.5% decrease year over year. HESS MIDSTREAM LP’s FY2022 Q4 earnings results demonstrate its strong financial performance and growth potential. The company’s focus on pipeline transportation, storage and processing of hydrocarbons in the continental United States is continuing to drive revenue growth and profitability. As the company continues to expand its operations, it is expected that its earnings results will remain strong in the future.
Market Price
On Wednesday, Hess Midstream LP (HESS) reported its fourth quarter earnings results for the year ending December 31, 2022. HESS shares opened at $31.0 and closed at $30.8, down 3.1% from its prior closing price of $31.8. The company said that the repurchases were made in order to increase unit value and to reduce the outstanding common units. Overall, it was a mixed quarter for HESS as it reported a decrease in both revenue and operating expenses.
However, the company’s repurchases and increased cash distributions indicate its commitment to increasing unit value for shareholders and reducing its debt burden. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HESM. More…
| Total Revenues | Net Income | Net Margin |
| 1.28k | 83.9 | 6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HESM. More…
| Operations | Investing | Financing |
| 862 | -163.2 | -632.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HESM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.6k | 3.09k | 5.63 |
Key Ratios Snapshot
Some of the financial key ratios for HESM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.6% | 28.1% | 62.5% |
| FCF Margin | ROE | ROA |
| 50.4% | 200.9% | 13.8% |
Analysis – HESM Intrinsic Value Calculation
GoodWhale has conducted an analysis of HESS MIDSTREAM LP’s financials. Using their proprietary Valuation Line, GoodWhale has determined that the fair value of the HESS MIDSTREAM LP share is estimated to be around $18.3. Currently, the HESS MIDSTREAM LP stock is being traded at $30.8, meaning there is an overvaluation of 68.5%. This suggests that the stock may not be the best option for investors looking to purchase shares in the company. GoodWhale’s analysis also indicates that the company is likely to be overvalued in comparison to other similar companies in the market. This could be attributed to a variety of factors, including the company’s performance in recent years, expected future performance, and potential opportunities or risks. Investors should take caution when making any decisions regarding HESS MIDSTREAM LP stock, as the current overvaluation suggests that there may be potential downside if the company is unable to perform as expected. It is important for investors to conduct their own research and consult with a financial advisor prior to making any investments. More…
Peers
The company’s assets include crude oil and natural gas gathering systems, pipelines, storage tanks, and terminals. Hess Midstream LP is headquartered in Houston, Texas. The company’s competitors include Rattler Midstream LP, EnLink Midstream LLC, Kinetik Holdings Inc.
– Rattler Midstream LP ($NYSE:ENLC)
EnLink Midstream LLC has a market cap of 5.96B as of 2022. The company’s return on equity is 32.09%. EnLink Midstream is engaged in the business of gathering, transporting, processing, marketing and storing natural gas and natural gas liquids (NGLs). The company operates in Oklahoma, Texas, Louisiana and New Mexico.
Summary
HESS MIDSTREAM LP recently reported its financial results for the fourth quarter of its fiscal year 2022, with total revenue of USD 21.8 million and net income of USD 314.6 million. While the revenue figure was a significant improvement compared to the same quarter in the year prior, net income was slightly lower. Investors reacted negatively to these results, with the stock price declining on the same day. Investors may want to consider their options when it comes to HESS MIDSTREAM LP. Although revenue was up significantly, net income was only slightly lower than the prior year, indicating that the company may not have been able to capitalize on its increased sales.
Additionally, the drop in stock price suggests that investors are not confident in the company’s long-term prospects. Investors should take into account the company’s financial performance, as well as its current market position, when deciding whether or not to invest in the company.
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