Hess Midstream (HESM) Downgraded at Raymond James in 2026 Midstream Reset

Core Viewpoint - Hess Midstream LP (NYSE:HESM) has been downgraded by Raymond James to Market Perform from Outperform, reflecting a shift in investor expectations towards execution and cash flow reliability in the midstream sector [2] Financial Performance - In Q3 2025, Hess Midstream reported a net income of $176 million, slightly down from $180 million in Q2 2025, while adjusted EBITDA increased to $321 million from $316 million in the previous quarter [3] - The company's gross adjusted EBITDA margin remained strong at approximately 80%, exceeding its target of 75%, indicating effective cost management and operational leverage [4] Distribution and Shareholder Returns - Hess Midstream continued to meet its distribution framework, achieving a targeted 5% annual growth per Class A share in Q3, alongside an additional boost from a $100 million share repurchase program [5] - The company provides midstream services including gathering, processing, storage, and transportation for crude oil, natural gas, and natural gas liquids [5]