Hess Midstream vs Murphy USA

This page compares Hess Midstream and Murphy USA, examining their business models, financial performance, and the market context around each company. The content is neutral and accessible, designed to inform rather than advise. Educational content, not financial advice.

This page compares Hess Midstream and Murphy USA, examining their business models, financial performance, and the market context around each company. The content is neutral and accessible, designed to...

About The Companies

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.

Murphy USA (MUSA)

Murphy USA Inc. (MUSA) operates a wide network of fuel stations and convenience stores across the United States, often colocated near major retailers. With a market capitalisation around $7.18 billion, the business combines high-volume fuel sales with convenience-store merchandise to generate revenue. Investors should note its earnings are driven by retail fuel margins, merchandise sales and site throughput, making the company sensitive to oil-price swings, wholesale fuel costs and local demand. Murphy USA has pursued growth through site optimisation and selective expansion, while operational efficiency and supply agreements are important to margins. Key risks include fuel price volatility, competition, regulatory change and cyclical consumer spending. This summary is for general educational purposes only, not personalised investment advice. Values can rise and fall and past performance is not a guide to future returns. Consider your objectives, risk tolerance and, if needed, speak to a regulated financial adviser before making investment decisions.

Comparison Snapshot

Key Financial Metrics

HESM

Metric

MUSA

$7.23B

Market Cap

$7.61B

11.97%

Potential Profit

-1.04%

Hold

Analyst Rating

Hold

Which 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

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Natural 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.

Published: July 20, 2025

Explore Basket

Which 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 Basket

Natural 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.

Published: July 20, 2025

Explore Basket

Investment Analysis

Hess Midstream

HESM

Pros

Hess Midstream reported strong and growing net income with Q2 2025 income increasing to $179.7 million, driven by volume growth across gas processing, oil terminaling, and water gathering segments.
The company increased its quarterly cash distribution consistently, with a 5% annual distribution growth guidance through 2027, supported by strong adjusted free cash flow.
Chevron owns a significant 37.8% indirect stake following the Hess acquisition, providing strategic backing and stability to Hess Midstream’s operations and growth prospects.

Considerations

Growth plans face headwinds due to Chevron's reduction of Bakken rig activity, impacting future throughput volumes and prompting some analyst downgrades.
Revenue expectations for 2025 have been adjusted downward by around 2%, reflecting market and operational uncertainties in key shale regions.
Despite strong cash flow, capital expenditures remain substantial to support compression and pipeline infrastructure expansion, involving execution risks and cost pressures.

Murphy USA

MUSA

Pros

Murphy USA benefits from strong downstream retail fuel demand and a broad convenience store network with strategic presence in growing U.S. markets.
Its focus on convenience retail and fuel operations provides diversified revenue streams, helping it navigate fuel price volatility and economic cycles effectively.
The company has demonstrated consistent profitability and positive cash flow generation, supporting its ability to sustain dividends and reinvest in growth initiatives.

Considerations

Murphy USA's profitability is closely tied to fuel price fluctuations and refining margins, exposing it to commodity price risks and regulatory changes.
As a fuel retailer, the company faces increasing competition from alternative energy retailers and evolving consumer preferences towards electric vehicles.
Economic downturns and shifts in transportation patterns can negatively impact fuel demand and in-store sales, potentially reducing revenue and cash flow.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

OPEC+ Opens The Taps: Midstream's Moment

Natural Gas Drilling Revival Play

Which Baskets Do They Appear In?

OPEC+ Opens The Taps: Midstream's Moment

Natural Gas Drilling Revival Play

Investment Analysis

Hess Midstream

Pros

Considerations

Murphy USA

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

About The Companies

Comparison Snapshot

Hess Midstream vs Murphy USA

About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

OPEC+ Opens The Taps: Midstream's Moment

Natural Gas Drilling Revival Play

Which Baskets Do They Appear In?

OPEC+ Opens The Taps: Midstream's Moment

Natural Gas Drilling Revival Play

Investment Analysis

Hess Midstream

Pros

Considerations

Murphy USA

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Hess Midstream vs Centrus Energy

APA vs Murphy USA

Uranium Energy vs Murphy USA

Frequently asked questions

What is the basic difference between Hess Midstream and Murphy USA in terms of business model?

How should I compare a stock with a growth outlook to a stock with a more steady cash flow?

What does it mean when a company has a stated distribution growth guidance through 2027?

How should I read the risk from management guidance and observer downgrades?

What does it mean if a company has significant strategic ownership from another major firm?

In what ways do external factors like regional oil activity or fuel demand affect these two stocks differently?

How does the market environment for energy infrastructure compare with the consumer retail sector?

What should I look for when assessing cash flow health in these two stocks?

How do analysts’ expectations impact investment decisions for these stocks?

Where can I find the most important numbers when comparing these two stocks?

Is this page intended to be educational and not financial advice?

What is the educational disclaimer at the end of the page?

About The Companies

Comparison Snapshot