HESM Intrinsic Value – Comparing Hess Midstream and TotalEnergies: A Head-To-Head Analysis
November 12, 2023
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Comparing Hess ($NYSE:HESM) Midstream and TotalEnergies: A Head-to-Head Analysis is a comprehensive comparison of two of the largest energy companies in the world. The company focuses on the development and acquisition of midstream infrastructure in the Delaware Basin and Bakken Shale formations. TotalEnergies is one of the world’s largest oil and gas companies and is the world’s leading integrated energy producer. Both HMLP and TotalEnergies offer a wide variety of services and products. HMLP provides crude oil, natural gas, and natural gas liquids gathering, processing, and production services in the Delaware Basin and Bakken Shale formations. The company also offers production services to customers in the form of salt water disposal, well site construction, natural gas pipeline construction, and other related services. Furthermore, HMLP provides natural gas transportation services to its customers through a combination of ownership of existing pipelines and agreements with third-party pipeline operators.
On the other hand, TotalEnergies’ activities span exploration, production, refining, petrochemicals, power generation, and trading. Overall, both companies have strengths and weaknesses that should be considered when making an investment decision. HMLP is a pure-play midstream company that is well positioned to benefit from the increased demand for infrastructure in the US shale plays. Meanwhile, TotalEnergies has a strong presence in the global energy market with an extensive portfolio of upstream, downstream, refining, and trading activities. The comparison of these two energy companies should enable investors to make an informed decision when considering an investment in either company.
Stock Price
Hess Midstream LP (HESM), an American midstream energy company, had a slight decline on Thursday. The stock opened at $29.6 and closed at $29.4, down 0.2% from the previous day’s closing price. When comparing HESM and TotalEnergies, there are several factors to consider. Overall, while both companies have seen good growth in their stock prices over the last year, TotalEnergies has the upper hand when it comes to market cap, gross margin and profits. 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 |
| 1.3k | 102.9 | 7.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HESM. More…
| Operations | Investing | Financing |
| 860.6 | -238.2 | -622 |
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 |
| 3.66k | 3.22k | 4.42 |
Key Ratios Snapshot
Some of the financial key ratios for HESM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.4% | 16.2% | 62.9% |
| FCF Margin | ROE | ROA |
| 48.1% | 169.2% | 14.0% |
Analysis – HESM Intrinsic Value
GoodWhale has conducted an analysis of HESS MIDSTREAM LP’s health and have determined that the fair value of its share is around $16.8. This number was calculated using our proprietary Valuation Line, which offers an accurate and reliable assessment of a company’s current worth. Our analysis concluded that the HESS MIDSTREAM LP stock is currently being traded at $29.4, meaning it is overvalued by 75.5%. We would advise investors to exercise caution when investing in the company, as it could be a risky venture. More…
Peers
The company’s assets include crude oil and natural gas gathering systems, pipelines, storage tanks, and terminals. Hess Midstream LP is headquartered in Houston, Texas. The company’s competitors include Rattler Midstream LP, EnLink Midstream LLC, Kinetik Holdings Inc.
– Rattler Midstream LP ($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 is an integrated midstream energy company with a focus on gathering, processing, storage, and transportation of natural gas and crude oil. Investing in HESS can offer investors a secure and reliable return as they benefit from the company’s long-term contracts with major oil and gas producers. The company’s emphasis on maximizing returns through stable cash flows and disciplined capital investments has resulted in a consistent dividend growth and dividend yield.
In addition, HESS has a diversified asset base across the United States, which provides a steady supply of natural gas and crude oil to its customers and limit risk to investors. HESS also continues to expand its portfolio of midstream assets to help ensure reliable growth.
