Antero Midstream vs Hess Midstream
Antero Midstream provides gathering, compression, and water handling services almost exclusively to Antero Resources in the Appalachian Basin, while Hess Midstream similarly operates gathering and processing assets with its primary customer being Hess Corporation in the Bakken. Both companies are structured as partially dropdown midstream vehicles with high contract visibility and distributions that attract income-focused investors. The Antero Midstream vs Hess Midstream comparison explores how single-customer dependency shapes the yield, growth, and risk calculus for midstream MLP investors.
Antero Midstream provides gathering, compression, and water handling services almost exclusively to Antero Resources in the Appalachian Basin, while Hess Midstream similarly operates gathering and pro...
Investment Analysis
Pros
- Reported a 10% year-over-year increase in adjusted EBITDA to $281 million in Q3 2025, showing operational growth.
- Strong free cash flow after dividends increased by 94% year-over-year to $78 million, enhancing financial flexibility.
- Reduced absolute debt by $175 million, improving leverage ratio to 2.7x, indicating strengthening balance sheet.
Considerations
- Missed revenue forecasts in Q3 2025 by approximately 8.5%, which may signal top-line growth challenges.
- Stock price exhibited volatility with an 8.4% decline over the past 30 days, reflecting some market uncertainty.
- Capital expenditures increased modestly, and expansion investments may represent execution risks amid market volatility.
Hess Midstream
HESM
Pros
- Operates midstream assets with fee-based services to Hess and third parties, providing diversified revenue streams.
- Demonstrated strong historical stock performance with a 5-year return of over 90%, indicating long-term growth potential.
- Lower stock price volatility reflected by a beta of 0.59, suggesting relative stability in turbulent market conditions.
Considerations
- Stock price declined about 8.6% year-to-date through late 2025, showing recent weakness in market sentiment.
- Financial health metrics are comparatively weaker, scoring 2 out of 6, pointing to potential liquidity or leverage risks.
- Uncertainties from Bakken shale development expose the company to commodity price and operational execution risks.
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Which Baskets Do They Appear In?
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Explore BasketNatural Gas Drilling Revival Play
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Explore BasketWhich Baskets Do They Appear In?
OPEC+ Opens The Taps: Midstream's Moment
OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.
Published: July 25, 2025
Explore BasketNatural Gas Drilling Revival Play
A carefully selected group of stocks poised to benefit from the recent upturn in U.S. natural gas drilling activity. Our professional analysts have identified companies across the entire natural gas value chain that could see improved performance as drilling rebounds for the first time in twelve weeks.
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Explore BasketBuy AM or HESM in Nemo
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