APA vs Hess Midstream

APA and Hess Midstream are examined side by side to compare business models, financial performance, and market context. The page presents neutral, accessible analysis of how each company creates value, manages costs, and navigates industry dynamics. It avoids predictions and promotional language, focusing on fundamentals and context. Educational content, not financial advice.

About The Companies

APA (APA)

Apache Corp (APA) is an upstream oil and gas exploration and production company with material exposure to North American onshore basins and offshore projects. With a market capitalisation around $8.1 billion, APA’s results are closely tied to commodity prices, production volumes and exploration success. Investors should be aware that revenues and cash flow can fluctuate with oil and gas prices, operational setbacks and capital spending cycles. The company may pursue asset sales, joint ventures or debt management to fund activity and return capital, but corporate plans can change. Key considerations include reserve replacement, production mix, operating costs and geopolitical or regulatory risks in any international jurisdictions where it operates. This summary is for educational purposes only; it is not personalised investment advice. Energy stocks like Apache can offer cyclical upside but also carry significant volatility and downside risk, so suitability depends on an investor’s objectives, timeframe and risk tolerance.

Hess Midstream (HESM)

Hess Midstream Operations LP (HESM) is a midstream energy partnership focusing on gathering, processing and transporting hydrocarbons in regions where its parent and counterparties operate. With a market capitalisation around $6.98 billion, HESM typically earns revenue from fee-based and volume-based contracts that connect production to downstream markets. Investors often watch midstream names for steady cash generation and distributions, but HESM’s cash flows can still be influenced by production volumes, commodity prices, and contractual terms. The partnership may carry leverage associated with asset-heavy infrastructure and faces regulatory, permitting and operational risks common to oil and gas midstream businesses. This summary is educational, not personalised advice: prospective investors should review the company’s filings, distribution policy and balance sheet, and consider whether exposure to midstream infrastructure suits their risk profile and investment objectives. Past performance is no guarantee of future returns and capital is at risk.

Comparison Snapshot

Key Financial Metrics

APA

Metric

HESM

$9.20B

Market Cap

$7.15B

-1.23%

Potential Profit

13.21%

Hold

Analyst Rating

Hold

Which Baskets Do They Appear In?

Oil & Gas

Fuel up with investment opportunities in the energy markets. This collection features carefully selected stocks from industry giants and innovators, chosen by professional analysts for their potential in the growing $6.93 trillion global oil and gas market.

Published: May 15, 2025

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Which Baskets Do They Appear In?

Oil & Gas

Published: May 15, 2025

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Investment Analysis

APA

Pros

Operational excellence in the Permian Basin drives consistent production and cost efficiency, enhancing cash flow generation.
Recent portfolio optimisation, including asset sales, boosts capital flexibility and potential for shareholder returns.
Anticipated US tax relief from 2026 could significantly improve free cash flow and support future distributions.

Considerations

Global oil price volatility and industry pressures create unpredictable earnings, with analyst price targets reflecting wide uncertainty.
Recent share price underperformance versus the broader market suggests investor concerns over long-term growth prospects.
Dividend yield, while above sector average, may not fully offset exposure to commodity cycle downturns.

Hess Midstream

HESM

Pros

Stable, fee-based revenue streams from midstream assets provide insulation against direct commodity price swings.
Long-term contracts with investment-grade counterparties support predictable cash flow and dividend growth.
Strategic alignment with Hess Corporation ensures access to high-quality shale production and integrated growth opportunities.

Considerations

Limited geographic and customer diversification increases reliance on Hess Corporation’s production and performance.
Regulatory scrutiny around pipeline projects and emissions could delay growth initiatives or increase compliance costs.
Elevated leverage and dependence on external financing for expansion may constrain financial flexibility during market stress.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Oil & Gas

Which Baskets Do They Appear In?

Oil & Gas

Investment Analysis

APA

Pros

Considerations

Hess Midstream

Pros

Considerations

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Frequently asked questions

About The Companies

Comparison Snapshot

APA vs Hess Midstream

About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Oil & Gas

Which Baskets Do They Appear In?

Oil & Gas

Investment Analysis

APA

Pros

Considerations

Hess Midstream

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

What is the difference between a stock and a midstream partnership in this comparison?

How do revenue streams drive value in these two companies?

Why is portfolio optimisation mentioned as a pro for APA?

What role do tax changes play in cash flow outlooks for these stocks?

How should one compare risk profiles between APA and Hess Midstream?

What do dividend considerations tell us in this comparison?

Why might APA’s price target dispersion matter to an investor?

How does leverage influence the two companies differently?

What market dynamics should readers consider when comparing these stocks?

How does sector-wide performance influence this comparison?

What should beginners look for when reading this comparison page?

What is the educational disclaimer for this page?

About The Companies

Comparison Snapshot