Hess Midstream LP (NYSE: HESM) operates as a critical midstream infrastructure provider, primarily serving the prolific Bakken and Three Forks Shale plays in the Williston Basin of North Dakota. The company's business model is highly stable and predictable, underpinned by long-term, 100% fee-based contracts with minimum volume commitments (MVCs) that protect the vast majority of its revenues. Hess Midstream operates through three primary segments: Gathering, Processing and Storage, and Terminaling and Export. The Gathering segment manages natural gas, crude oil, and produced water gathering and compression systems. The Processing and Storage segment includes the Tioga Gas Plant, an equity investment in the Little Missouri (LM4) joint venture, and the Mentor storage terminal. The Terminaling and Export segment operates the Ramberg terminal facility, the Tioga rail terminal, and various pipeline header systems. Originally formed by Hess Corporation to support its upstream operations, Hess Midstream now operates under the umbrella of Chevron Corporation following Chevron's acquisition of Hess. The company generates revenue by charging fees for gathering, compressing, and processing natural gas; fractionating natural gas liquids (NGLs); and gathering, terminaling, and transporting crude oil and produced water. Its strategic focus remains on operational reliability, free cash flow generation, and delivering consistent shareholder returns through targeted distribution growth and unit repurchases.
