How does Chevron's acquisition of Hess affect Hess Midstream?

Chevron's acquisition of Hess Corporation means Hess Midstream's primary customer will transition from independent Hess to Chevron. While Hess Midstream has long-term contracts providing near-term revenue security, the longer-term strategy depends on Chevron's Bakken development plans. Chevron could maintain or expand the relationship, potentially acquire HESM directly, or eventually reduce Bakken capital intensity.

Why are small midstream MLPs considered riskier than large midstream companies?

Smaller midstream MLPs like NGL and HESM have less diversification, higher customer concentration, smaller asset bases, and less access to capital markets than large midstream C-Corps like Kinder Morgan or Enterprise Products Partners. A single major customer reduction or basin production decline can have an outsized impact on their cash flows, and they may have fewer financing options during commodity downturns.

What is the Bakken Shale and how has its production evolved?

The Bakken Shale in North Dakota and Montana was one of the first major U.S. tight oil plays — production surged in the 2010s to make North Dakota a top oil-producing state. The Bakken is now a more mature basin, with production somewhat constrained by economics versus the higher-returning Permian Basin. Most major operators have shifted growth capital to the Permian, making Bakken production flatter and more dependent on efficiency improvements than growth drilling.

brimindinvest.com / compare / ngl-vs-hess-midstreamLIVE

NGL

NGL Energy Partners LP · Energy - Midstream Water & Crude Logistics

$15.99

-8.26% this month

VERSUS

⟷

COMPARE

HESM

Hess Midstream LP · Energy - Midstream Gathering & Processing

$36.79

-9.67% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

NGL

1

HESM

1

MIXED SETUP

Comparison scoreboard

MIXED SETUP

AI Score

NGL 24.8

HESM ✓30.6

1Y Return

NGL ✓+252.98%

HESM +3.58%

Fwd P/E

NGL N/A

HESM 12.05

Target Up.

NGL N/A

HESM +0.12%

Op. Margin

NGL N/A

HESM N/A

Metrics last refreshed: 6/20/2026

Quick take

NGL vs HESM Stock Comparison: AI Score, Valuation, Performance and Upside

NGL Energy Partners (NGL) and Hess Midstream (HESM) are both smaller midstream MLPs with concentrated business models — NGL with Permian water disposal and crude logistics, and HESM with Bakken-focused gathering and processing tied to Hess Corporation (being acquired by Chevron). Both offer fee-based cash flows with different risk profiles.

NGL vs HESM compares two niche midstream MLPs — NGL's produced water infrastructure growth story in the Permian versus HESM's predictable Bakken gathering cash flows tied to a parent customer undergoing ownership transition.

Live analysis · updated 6/20/2026

NGL and HESM are closely matched — they split the tracked metrics evenly. NGL has delivered stronger 1-year price return (+252.98% vs +3.58% for HESM).

Normalized 1Y performance

NGL

HESM

Recent returns

NGL

HESM

Analyst price targets & sentiment

NGL

Price target data unavailable

N/A

HESM · 6 analysts

STRONG BUYHOLDSTRONG SELL

Sell (3.6/5.0)

Price target range

analyst low$32.00
analyst high$40.00
analyst mean$36.83
current price$36.79

+0.1% upside to analyst mean

Who should consider this stock?

NGL may suit investors who:

→Want exposure to the growing Permian Basin produced water disposal market as a derivative of rising Texas oil production
→Value fee-based water services as a less commodity-price-sensitive midstream business than crude oil transportation or processing
→Believe NGL's leverage reduction path and water business expansion provide a catalyst for distribution reinstatement and unit price appreciation

HESM may suit investors who:

→Want a predictable fee-based midstream MLP with high distribution growth tied to Bakken Shale gathering and processing
→Value the cash flow visibility from long-term gathering contracts with a creditworthy parent company (Hess, now being acquired by Chevron)
→Accept Bakken basin concentration and single-customer risk in exchange for a steady, growing distribution from a well-managed Bakken midstream operator

Performance & AI score

Metric	NGL	HESM
AI score	24.8	30.6
AI rank	#2996	#2242
Latest close	$15.99	$36.79
1M return	-8.26%	-9.67%
6M return	+63.00%	+11.60%
1Y return	+252.98%	+3.58%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	NGL	HESM
1Y ago	$35.3K (+253.0%) started 2025-06-18	$11.27K (+12.7%) started 2025-06-18
5Y ago	$73.69K (+636.9%) started 2021-06-18	$34.62K (+246.2%) started 2021-06-18
10Y ago	$30.07K (+200.7%) started 2016-06-20	$76.16K (+661.6%) started 2017-04-05

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	NGL	HESM
Market cap	$2B	$7.6B
Trailing P/E	N/A	12.73
Forward P/E	N/A	12.05
Price/Sales	0.63	4.67
EV/Revenue	1.88	5.15
Analyst target	N/A	$36.83
Target upside	N/A	+0.12%

Growth, profitability & risk

Metric	NGL	HESM
Revenue growth	-13.30%	2.10%
Earnings growth	N/A	4.80%
EPS growth	N/A	+4.80%
FCF margin	+9.51%	+27.86%
Operating margin	N/A	N/A
Profit margin	-4.51%	22.64%
ROIC proxy	-51.65%	153.41%
Return on equity	-51.65%	153.41%
Dividend yield	0.00%	8.27%
Beta	0.58	0.51
Debt/equity	N/A	1006.40
Current ratio	1.05	0.92
Quick ratio	0.91	0.89

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

NGL max drawdown15.96%

HESM max drawdown25.78%

NGL max wkly drop11.53%

HESM max wkly drop11.70%

5Y risk snapshot

NGL max drawdown63.12%

HESM max drawdown28.72%

NGL max wkly drop32.17%

HESM max wkly drop17.01%

10Y risk snapshot

NGL max drawdown93.22%

HESM max drawdown75.16%

NGL max wkly drop57.51%

HESM max wkly drop55.59%

Performance metrics by period

Period	Metric	NGL	HESM
1Y	Growth	+252.98%	+3.58%
	CAGR	+253.29%	+3.58%
	Sharpe ratio	2.56	0.08
	Max drawdown	15.96%	25.78%
	Max daily drop	9.72%	10.44%
	Max wkly drop	11.53%	11.70%
5Y	Growth	+636.87%	+116.55%
	CAGR	+49.11%	+16.71%
	Sharpe ratio	0.90	0.54
	Max drawdown	63.12%	28.72%
	Max daily drop	22.58%	10.47%
	Max wkly drop	32.17%	17.01%
10Y	Growth	+44.71%	+185.85%
	CAGR	+3.77%	+12.09%
	Sharpe ratio	0.33	0.38
	Max drawdown	93.22%	75.16%
	Max daily drop	45.34%	37.70%
	Max wkly drop	57.51%	55.59%

Business comparison

Category	NGL	HESM
Company	NGL Energy Partners LP	Hess Midstream LP
Sector	Energy - Midstream Water & Crude Logistics	Energy - Midstream Gathering & Processing
Industry	N/A	N/A
Core business	NGL Energy Partners is a midstream MLP focused primarily on water solutions (produced water gathering, disposal, and recycling) for the Permian Basin and DJ Basin, along with crude oil logistics operations — having divested retail propane and refined products businesses to focus on water and crude infrastructure.	Hess Midstream is a gathering, processing, and terminal company primarily serving Hess Corporation's Bakken Shale operations in North Dakota, operating gas gathering, compression, processing, and crude oil gathering systems.
Investor focus	Investors track NGL's produced water volumes (a direct derivative of oil production), Permian Basin water disposal capacity, leverage reduction, and the path to reinstating distributions after prior suspension during the 2020 oil price crash.	Investors track Hess Midstream's throughput volumes (tied to Hess Corporation Bakken production), distribution growth, coverage ratio, and the evolution of the Hess parent relationship following Chevron's acquisition of Hess.

NGL strengths

→Produced water disposal is a critical and growing service as Permian Basin production increases — each barrel of oil produced generates multiple barrels of produced water requiring disposal
→Water infrastructure is a fee-based business with less direct commodity price exposure than upstream E&P
→Permian Basin water disposal demand growth is driven structurally by ongoing oil production increases in the most active U.S. oil basin

HESM strengths

→Fee-based business model with long-term agreements tied to Hess Corporation's Bakken development plans provides revenue visibility and cash flow predictability
→High distribution growth rate — Hess Midstream has maintained an above-average distribution growth commitment relative to most MLPs
→Tight geographic focus on the Bakken with a single strong parent customer creates operational simplicity and predictability

Risks to watch — NGL

→NGL Energy Partners cut its distribution in 2020 during the oil price crash and has not fully reinstated it — distribution history concerns income investors
→High leverage from prior growth acquisitions makes the company more vulnerable to oil price downturns that reduce produced water volumes
→Regulatory changes to produced water disposal could affect disposal well permits and operating costs

Risks to watch — HESM

→Chevron's acquisition of Hess Corporation (the primary customer) creates uncertainty about the long-term strategy for Hess Midstream after the parent company transition
→Single customer concentration means HESM's volumes are entirely dependent on Chevron's (formerly Hess's) Bakken development decisions
→Bakken Shale is a mature basin — long-term production trends will depend on remaining inventory quality and Chevron's capital allocation priorities

Frequently asked questions

Produced water is the water that comes to the surface along with oil and gas from underground formations — in the Permian Basin, wells often produce several barrels of water for every barrel of oil. This water must be gathered, treated, and disposed of (typically by injection into approved disposal wells) or recycled for use in fracking operations. As Permian production grows, produced water volumes grow proportionally.

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NGL

+2.8%BUY

HESM

+1.1%HOLD

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