Citi sees no near-term catalysts for Hess Midstream, downgrades to 'neutral'

Hess Midstream LP

11/09/2025 13:12

** Brokerage Citigroup downgrades Hess Midstream HESM.N to neutral from buy and cut its price target to $41 from $42

** Citi says co's growth outlook dependent on Chevron’s plan for Bakken oil field

** HESM provides fee-based services mainly to Chevron's CVX.N recently acquired HES Corp

** Brokerage says CVX could either maintain status quo, scale back in Bakken or simplify HESM's structure at oil field - all three have different impacts on Hess Midstream

** If CVX maintains similar development plan, HESM could buyback about 5% of its market cap each year and grow dividend 10% annually

** In a reduced production scenario, co to maintain at least 5% dividend
growth and steady, although diminished, level of buybacks

** Four of the six brokerages covering stock, as per LSEG, have a hold rating with a median PT of $48

** Up to last close stock had risen 6.7% YTD, vs. benchmark S&P 500's .SPX 11% rise

 (Reporting by Johann M Cherian in Bengaluru)

 ((johann.mcherian@thomsonreuters.com))