Cushing Exits Entire Investment in Hess Midstream
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HESM?
Source: Fool
- Complete Exit: Cushing Asset Management sold all 1,357,200 shares of Hess Midstream in Q1 2026, with an estimated transaction value of $50.29 million, indicating a complete exit from the investment as Hess Midstream now represents none of the fund's 13F AUM.
- Declining Position Value: The quarter-end value of Hess Midstream's position decreased by $46.82 million due to both the share sale and stock price changes, highlighting a significant reduction in the company's importance within Cushing's investment portfolio.
- Portfolio Restructuring: Cushing's top five holdings are all midstream energy companies, indicating a strategic shift towards larger, diversified pipeline operators to mitigate risk and enhance earnings stability, leading to Hess Midstream's removal due to its concentrated asset base.
- Poor Market Performance: As of April 27, 2026, Hess Midstream shares were priced at $37.02, reflecting a 3.2% increase over the past year, yet underperforming the S&P 500 by 26.34 percentage points, indicating a lack of competitive strength in the market.
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Analyst Views on HESM
Wall Street analysts forecast HESM stock price to fall
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 37.020
Low
34.00
Averages
36.50
High
39.00
Current: 37.020
Low
34.00
Averages
36.50
High
39.00
About HESM
Hess Midstream LP is a midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to the Company and third-party customers. It owns oil, gas and produces water handling assets that are located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. Its gathering segment includes Hess North Dakota Pipeline Operations LP and Hess Water Services Holdings LLC, which owns natural gas gathering and compression, crude oil gathering, and produced water gathering and disposal. Its processing and storage segment includes Hess TGP Operations LP and Hess Mentor Storage Holdings LLC, which owns Tioga gas plant, an equity investment in LM4 Joint Venture, and mentor storage terminal. Its terminaling and export segment includes Hess North Dakota Export Logistics Operations LP, which owns Ramberg Terminal Facility, Tioga Rail Terminal, Crude Oil Rail Cars, Johnson's Corner Header System, and other DAPL connections.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cushing Asset Management Exits Hess Midstream Completely
- Share Sale Details: Cushing Asset Management completely exited its position in Hess Midstream by selling 1,357,200 shares in Q1 2026, with an estimated transaction value of $50.29 million, indicating a significant shift in confidence regarding this asset.
- Asset Management Impact: The sale resulted in a $46.82 million decline in the quarter-end position value, reflecting both the share sale and stock price fluctuations, which impacted the overall assets under management by 2.49%.
- Strategic Shift: Cushing reduced its stake in Hess Midstream from 2.7% in the previous quarter to zero, suggesting a strategic pivot towards larger, diversified pipeline operators to mitigate risks and enhance portfolio diversity.
- Market Outlook: While Hess Midstream remains a predictable income-generating business, its concentrated asset base in the Bakken region and reliance on a single customer may diminish its appeal to investors seeking diversification in a changing market landscape.
See More
Cushing Exits Entire Investment in Hess Midstream
- Complete Exit: Cushing Asset Management sold all 1,357,200 shares of Hess Midstream in Q1 2026, with an estimated transaction value of $50.29 million, indicating a complete exit from the investment as Hess Midstream now represents none of the fund's 13F AUM.
- Declining Position Value: The quarter-end value of Hess Midstream's position decreased by $46.82 million due to both the share sale and stock price changes, highlighting a significant reduction in the company's importance within Cushing's investment portfolio.
- Portfolio Restructuring: Cushing's top five holdings are all midstream energy companies, indicating a strategic shift towards larger, diversified pipeline operators to mitigate risk and enhance earnings stability, leading to Hess Midstream's removal due to its concentrated asset base.
- Poor Market Performance: As of April 27, 2026, Hess Midstream shares were priced at $37.02, reflecting a 3.2% increase over the past year, yet underperforming the S&P 500 by 26.34 percentage points, indicating a lack of competitive strength in the market.
See More
Cushing Exits Hess Midstream Completely
- Share Sale: Cushing Asset Management sold all 1,357,200 shares of Hess Midstream in Q1 2026, with an estimated transaction value of $50.29 million, indicating a complete exit that reflects diminished confidence in the asset.
- Value Decline: The quarter-end value of Hess Midstream's position dropped by $46.82 million due to both the sale and stock price changes, suggesting a less optimistic market outlook that impacts its standing in Cushing's portfolio.
- Portfolio Restructuring: Cushing's top five holdings are large, diversified pipeline operators, and the concentrated asset base of Hess Midstream, which relies heavily on a single core customer (Chevron), led to its removal from the portfolio, indicating a preference for broader risk diversification.
- Market Performance: As of April 27, 2026, Hess Midstream shares were priced at $37.02, reflecting a 3.2% increase over the past year, yet underperforming the S&P 500 by 26.34 percentage points, highlighting its competitive challenges in the market.
See More
Hess Midstream Announces Quarterly Cash Distribution Increase
- Quarterly Cash Distribution: Hess Midstream announced a quarterly cash distribution of $0.7792 per Class A share for Q1 2026, representing a $0.0151 increase from the previous quarter, indicating the company's commitment to maintaining stable dividends.
- Yield Performance: The forward yield of 8.42% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest towards its stock.
- Shareholder Record Dates: The dividend will be payable on May 14, with a record date of May 7 and an ex-dividend date also set for May 7, ensuring shareholders can receive their dividend payouts promptly.
- Future Growth Target: Hess Midstream aims for a 10% annual free cash flow growth through 2028, demonstrating its commitment to sustainable financial performance despite a reduction in capital expenditures.
See More
HESS MIDSTREAM LP ANNOUNCES Q1 CASH DISTRIBUTION OF $0.7792 PER CLASS A SHARE, INCREASING BY $0.0151 FROM Q4 2025
Cash Distribution Announcement: HESS Midstream has declared a cash distribution of $0.7792 per class A share for Q1.
Increase from Previous Quarter: This distribution reflects an increase of $0.0151 compared to Q4 2025.
See More
Stock Markets Decline Amid Soaring Oil Prices and Geopolitical Tensions
- Oil Price Surge Impacts Markets: The S&P 500 index fell 0.24%, the Dow Jones Industrial Average dropped 0.01%, and the Nasdaq 100 index declined 0.31% on Monday as WTI crude prices surged over 6%, indicating market sensitivity to rising energy costs amid geopolitical tensions.
- Geopolitical Risks Escalate: The closure of the Strait of Hormuz by Iran has raised market concerns, especially following U.S. Navy actions against Iranian tankers, which could exacerbate global oil and fuel shortages, further unsettling investor sentiment.
- Earnings Season Continues: So far, 81% of the 48 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise 12% year-over-year; however, excluding the tech sector, growth is only expected at 3%, highlighting signs of economic weakness.
- Airline Stocks Under Pressure: Airline stocks retreated as rising oil prices weighed on profits, with American Airlines and Alaska Air both down over 4%, reflecting the direct impact of fuel costs on company earnings and potential downward revisions in future profit expectations.
See More
Cushing Asset Management Exits Hess Midstream Completely
- Share Sale Details: Cushing Asset Management completely exited its position in Hess Midstream by selling 1,357,200 shares in Q1 2026, with an estimated transaction value of $50.29 million, indicating a significant shift in confidence regarding this asset.
- Asset Management Impact: The sale resulted in a $46.82 million decline in the quarter-end position value, reflecting both the share sale and stock price fluctuations, which impacted the overall assets under management by 2.49%.
- Strategic Shift: Cushing reduced its stake in Hess Midstream from 2.7% in the previous quarter to zero, suggesting a strategic pivot towards larger, diversified pipeline operators to mitigate risks and enhance portfolio diversity.
- Market Outlook: While Hess Midstream remains a predictable income-generating business, its concentrated asset base in the Bakken region and reliance on a single customer may diminish its appeal to investors seeking diversification in a changing market landscape.
See More
Cushing Exits Entire Investment in Hess Midstream
- Complete Exit: Cushing Asset Management sold all 1,357,200 shares of Hess Midstream in Q1 2026, with an estimated transaction value of $50.29 million, indicating a complete exit from the investment as Hess Midstream now represents none of the fund's 13F AUM.
- Declining Position Value: The quarter-end value of Hess Midstream's position decreased by $46.82 million due to both the share sale and stock price changes, highlighting a significant reduction in the company's importance within Cushing's investment portfolio.
- Portfolio Restructuring: Cushing's top five holdings are all midstream energy companies, indicating a strategic shift towards larger, diversified pipeline operators to mitigate risk and enhance earnings stability, leading to Hess Midstream's removal due to its concentrated asset base.
- Poor Market Performance: As of April 27, 2026, Hess Midstream shares were priced at $37.02, reflecting a 3.2% increase over the past year, yet underperforming the S&P 500 by 26.34 percentage points, indicating a lack of competitive strength in the market.
See More
Cushing Exits Hess Midstream Completely
- Share Sale: Cushing Asset Management sold all 1,357,200 shares of Hess Midstream in Q1 2026, with an estimated transaction value of $50.29 million, indicating a complete exit that reflects diminished confidence in the asset.
- Value Decline: The quarter-end value of Hess Midstream's position dropped by $46.82 million due to both the sale and stock price changes, suggesting a less optimistic market outlook that impacts its standing in Cushing's portfolio.
- Portfolio Restructuring: Cushing's top five holdings are large, diversified pipeline operators, and the concentrated asset base of Hess Midstream, which relies heavily on a single core customer (Chevron), led to its removal from the portfolio, indicating a preference for broader risk diversification.
- Market Performance: As of April 27, 2026, Hess Midstream shares were priced at $37.02, reflecting a 3.2% increase over the past year, yet underperforming the S&P 500 by 26.34 percentage points, highlighting its competitive challenges in the market.
See More
Hess Midstream Announces Quarterly Cash Distribution Increase
- Quarterly Cash Distribution: Hess Midstream announced a quarterly cash distribution of $0.7792 per Class A share for Q1 2026, representing a $0.0151 increase from the previous quarter, indicating the company's commitment to maintaining stable dividends.
- Yield Performance: The forward yield of 8.42% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest towards its stock.
- Shareholder Record Dates: The dividend will be payable on May 14, with a record date of May 7 and an ex-dividend date also set for May 7, ensuring shareholders can receive their dividend payouts promptly.
- Future Growth Target: Hess Midstream aims for a 10% annual free cash flow growth through 2028, demonstrating its commitment to sustainable financial performance despite a reduction in capital expenditures.
See More
HESS MIDSTREAM LP ANNOUNCES Q1 CASH DISTRIBUTION OF $0.7792 PER CLASS A SHARE, INCREASING BY $0.0151 FROM Q4 2025
Cash Distribution Announcement: HESS Midstream has declared a cash distribution of $0.7792 per class A share for Q1.
Increase from Previous Quarter: This distribution reflects an increase of $0.0151 compared to Q4 2025.
See More
Stock Markets Decline Amid Soaring Oil Prices and Geopolitical Tensions
- Oil Price Surge Impacts Markets: The S&P 500 index fell 0.24%, the Dow Jones Industrial Average dropped 0.01%, and the Nasdaq 100 index declined 0.31% on Monday as WTI crude prices surged over 6%, indicating market sensitivity to rising energy costs amid geopolitical tensions.
- Geopolitical Risks Escalate: The closure of the Strait of Hormuz by Iran has raised market concerns, especially following U.S. Navy actions against Iranian tankers, which could exacerbate global oil and fuel shortages, further unsettling investor sentiment.
- Earnings Season Continues: So far, 81% of the 48 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise 12% year-over-year; however, excluding the tech sector, growth is only expected at 3%, highlighting signs of economic weakness.
- Airline Stocks Under Pressure: Airline stocks retreated as rising oil prices weighed on profits, with American Airlines and Alaska Air both down over 4%, reflecting the direct impact of fuel costs on company earnings and potential downward revisions in future profit expectations.
See More
