Stupefying Stock: Hess Midstream Partners LP (NYSE:HESM)

On 23 Aug 2019, Hess Midstream Partners LP (NYSE:HESM) stock showed the downward by -1.25% during the normal trading session on Friday and reaching a 52-week high of -24.47% during the day while it closed the day at 18.18. The stock last traded volume of 103,356 shares was more it’s an average volume of 148,535 shares.

Hess Midstream Partners LP (HESM) recently stated 2nd quarter 2k19 net income of $90.9M contrast with net income of $94.6M for the 2nd quarter of 2k18. After deduction for non controlling interests, net income attributable to Hess Midstream was $16.8M, or $0.29 per ordinary unit. Hess Midstream generated Adjusted EBITDA of $24.2M and DCF of $23.3M for the 2nd quarter of 2k19.

Financial Results

Hess Midstream’s results included in this release are consolidated to include the no controlling interests in Hess Midstream’s assets retained by Hess Infrastructure Partners LP (“Hess Infrastructure Partners”). We refer to certain results as “attributable to Hess Midstream Partners LP,” which excludes the no controlling interests in Hess Midstream’s assets retained by Hess Infrastructure Partners.

Revenues and other income in the 2nd quarter of 2k19 were $172.8M, including $0.7M of shortfall fees payments related to minimum volume commitments (“MVC”). Revenues were up from $164.7M in the prior year quarter, primarily attributable to higher throughput volumes and tariff rates, partially offset by lower MVC in the gathering section where physical volumes were below MVC levels in both periods. Total costs and expenses in the 2nd quarter of 2k19 were $81.3M up from $69.7M in the prior-year quarter, primarily attributable to higher maintenance and depreciation driven by new gathering assets placed in service. Net income for the 2nd quarter of 2k19 was $90.9M and net cash provided by operating activities was $148.3M.

Adjusted EBITDA was $125.5M, of which $24.2M is attributable to Hess Midstream. DCF of $23.3M resulted in a 1.02x DCF coverage ratio relative to distributions and Hess Midstream ended the 2nd quarter of 2k19 with an undrawn $300.0M revolving credit facility.

Quarterly Cash Distributions

On July 25, 2k19, our general partner’s board of directors reported a cash distribution of $0.3970 per unit for the 2nd quarter of 2k19, a raise of 3.6% over the distribution for the previous quarter and 15% contrast to the 2nd quarter of 2k18. The distribution is predictable to be paid on August 13, 2k19 to unit holders of record as of the close of business on August 5, 2k19.

The Corporation has PEG ratio of 0.91 and price to cash ratio of 65.06. Net profit margin of the firm was recorded at 9.90% and operating profit margin was calculated at 54.70% while Forward Price to earnings was 10.98.

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