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Hess Midstream LP (HESM)

NYSE - Nasdaq Real Time Price. Currency in USD
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28.68+0.59 (+2.10%)
As of 12:51PM EDT. Market open.
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  • J
    Jack
    The stock hit about $35 in April and then plummeted $5 even though it was known the dividend would be increasing. $2.20 @ 6% would be $36 a share. Unfortunately, dividend stocks are constrained by interest rates and expected payout and the % return demanded by the market. Let's say in5 years the dividend is $2.80. If investors are happy around 5 1/2 % the stock price is $51 If they want 6%, $47. If they want 7%, $40 And if they are greedy wanrting 7 1/2 %, the price is $37. $2.80 is about 5% annualgrowth in the dividend for 5 years. The onlyother hope is somebody wanting to control the assets and you get a buyout at $60. Of course, if the stock languishes in the low 30's and you have large buy backs, then you might get 6% dividend growth and a dividend around $2.95 or $3.00 and likely a stock price around $50 - not sure what option writing might bring in.
  • A
    Alindallas2000
    Solid earnings report. Guidance is as expected. Not going to see spectacular growth in the pps--just steady. Good stock for an investor wanting income.
  • A
    Alindallas2000
    As promised, the dividend was increased by 5%. We'll se what they say tomorrow, but no reason not to think it will be strong and steady.
  • J
    JessieJames
    Joe says bankrupts here folks.
  • S
    SinBad
    A good day to scoop shares. With lowered expectations I can't see how they won't beat this quarter. I am holding for that divined in 2 weeks. I also expect buying interest in the next few weeks. Buy if you can.

    Hold and reap rewards!
  • S
    SinBad
    I'm betting that the earnings report will be good this quarter so I am holding and accumulating with price drops (like today.) A no-brainer...
  • G
    Gene
    Surprised no one has mentioned this yet. They announced a secondary offering which like the ones before will NOT be dilutive. This is just moving shares that were not yet publicly traded into the float. Earnings per share and other Per share metrics will not be effected.

    They also announced what appears to be a share buyback. I'm not sure if this is going to be funded by cash on hand, future cash flows, or by taking on debt. But this should improve earnings per share and might also end up raising the dividend per share we receive.

    If the stock dips might be a good time to pick up more shares. Make sure to wait for the dip. Will take a few weeks for the market to soak up the new shares.
  • A
    Alejandra
    As you can see we are already in March and I feel those who would allow the market dynamism to determine when to trade or not are either new in space in general or probably just naïve,the sphere have seen far worse times than this, enlightened traders continue to make good use of the dip and pump even acquiring more equities towards trading sessions, I'd say that more emphasis should be put into trading since it is way profitable than holding. Trading went smooth for me as I was able to raise over 9.2 BTC when I started at 1.5 BTC in just few weeks implementing trades with signals and insights from Jarvis Raymond would advise you all to trade your asset rather than hold for a future you aren't sure about. You can reach Jarvis Raymond on ͲeIєɠɾαm👉@jartrade
  • R
    Roger
    I'm 100% into "midstream" companies. I know, one should diversify and balance at my age (87). But where else can you find these yields?
  • S
    SinBad
    Still holding this one. I have a core holding for collecting dividends (with a nice price improvement!) I have funds ready to buy, but not in a hurry. I never mind buying a stock as it is going up either.

    Hang tight high yield holders.
  • A
    Alindallas2000
    Decent but not overwhelming ER. Future dividend increases are only expected to be 5%/yr. Hard to see the unit price growing more than the rate of increase in the dividend. So add the current 8% dividend to a 5% growth in the unit price gets us to a total return of 13%. Not bad given the alternatives. Since revenues are largely protected, this looks like a relatively safe investment.
  • A
    Alindallas2000
    Increased distribution and guidance. With current distribution being increased 5% annually and guidance for similar increases for three years, with coverage increasing to 1.5, this looks like a safe play for the long haul. Nothing spectacular. Just a total return of 12-15% return. Good for the retirement account.
  • S
    Steven
    I bought 376 shares this morning @ $26.40. I also bought positions in OMP, SBR, XOM and MO. Sold SBUX to pay for it (with no tax hit). My annual divvy on this money went up from $950 to $3900. I think I did pretty well.
  • A
    Alindallas2000
    So they sold $400 million in senior secured notes to pay for the buy-back but no mention of the interest rate.
  • G
    Gene
    I suspect as more people realize the market has topped and will either
    A) Crash or
    B) Trade Sideways

    they will start looking at these high dividend value stock types. Oil Midstream is in a good place imo. The stock valuations are low and yields are high and the companies throughout the industry seem to be lowering their debt levels. It is will become more clear that they don't need to be priced as high risk plays.
  • A
    Alindallas2000
    I reread the ER transcript and am even more bullish. They seem confident that they can exceed their current guidance, which seems very conservative. With Hess adding one and possibly two drilling rigs, volumes will continue to increase. While this will drive increased capex for us, it comes with even greater long term profits. Paydown of debt will decrease leverage to 2.6 times EBITDA from 2.9, strenghtening the balance sheet. With current conservative drilling of new wells by a more responsible E&P industry, I see this #$%$ solid ten year runway. Whether you clip the coupon and spend it or reinvest the dividend, this looks to be a buy, hold and forget it investment for years to come.
  • T
    Thomas H
    HESS will fall
    HESM will cut its dividend
    only care by how much?
    Watching the NAV for a turn in price action 0 so far
  • S
    Steven
    I just got my first divvy here, bought just a couple weeks ago. My new cost basis is $25.89. Underwater a little bit but I'm good with it.
  • A
    Alindallas2000
    The Investor Presentation recently posted on their website should be required reading for existing shareholders and those thinking about buying. While we are clearly joined at the hip with HES, its inventory of prospective wells, even at $40 WTI, guarantees steady growth in FCF, distributable income and a reduced share count thru buybacks for many years. It should be far less volatile than HES or other E&P companies. Perfect for those of us of a certain age looking for steady dividend income with fair capital appreciation.