#5 - Hess Midstream (NYSE:HESM)
The future of our nation’s energy infrastructure will involve renewable energy sources. However, millions of Americans still rely on traditional fossil fuels to keep their lights on and their homes at a comfortable temperature. And that’s why you investors should consider Hess Midstream (NYSE:HESM).
As its name suggests, Hess operates as a midstream player. The company specializes in storing, processing, and exporting crude oil and natural gas. Since midstream energy companies benefit more from demand trends than price trends, they tend to offer more predictable cash flows.
Aside from the idea that the company will play a crucial role in filling the need for gas and oil, the company has some appealing fundamentals. Specifically, it currently trades at just over 11x forward earnings. And it offers a dividend that currently yields 7.23%. The main reason that Hess Midstream offers such a generous dividend is that it operates as a master limited partnership.
About Hess Midstream
Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities.
Read More - Current Price
- $36.78
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $38.67 (5.1% Upside)
