Is Hess Midstream LP (HESM) Halal?

NYSE Energy United States $8.3B
✗ NOT HALAL
Confidence: 90/100
Hess Midstream LP (HESM) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 46.1% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Hess Midstream LP operates in the Energy sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 46.1%
/ 30%
0.0%
/ 30%
1.8%
/ 30%
0.98%
/ 5%
✗ NOT HALAL
DJIM 46.1%
/ 33%
0.0%
/ 33%
1.8%
/ 33%
0.98%
/ 5%
✗ NOT HALAL
MSCI 86.0%
/ 33%
0.0%
/ 33%
3.4%
/ 33%
0.98%
/ 5%
✗ NOT HALAL
S&P 46.1%
/ 33%
0.0%
/ 33%
1.8%
/ 33%
0.98%
/ 5%
✗ NOT HALAL
FTSE 86.0%
/ 33%
0.0%
/ 33%
3.4%
/ 50%
0.98%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
13.9
Forward: 13.0
EPS
$2.86
Dividend Yield
745.0%
Payout: 101.5%
P/B Ratio
9.1
EV/EBITDA
7.2
EV: $8.8B
Revenue
$1.6B
Growth: 2.1%
Beta
0.6
Low volatility
Current Ratio
0.8

Profitability

Gross Margin 77.1%
Operating Margin 62.2%
Net Margin 21.8%
Return on Equity (ROE) 151.6%
Return on Assets (ROA) 14.8%

Cash Flow & Balance Sheet

Operating Cash Flow$984M
Free Cash Flow$728M
Total Debt$3.8B
Debt-to-Equity861.4
Current Ratio0.8
Total Assets$4.4B

Price & Trading

Last Close$40.04
50-Day MA$37.51
200-Day MA$36.88
Avg Volume1.5M
Beta0.6
52-Week Range
$31.63
$44.14

About Hess Midstream LP (HESM)

CEO
Mr. Jonathan C. Stein
Sector
Energy
Industry
Oil & Gas Midstream
Country
United States
Exchange
NYSE
Market Cap
$8.3B
Currency
USD

Hess Midstream LP acquires, owns, operates, and develops midstream assets and provide fee-based services to sponsor, its subsidiaries, and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering system consists of approximately 1,430 miles of high- and low-pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 685 million cubic feet per day; crude oil gathering system comprises approximately 615 miles of crude oil gathering pipelines; and produces water gathering system that includes approximately 360 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota; and Terminaling and Export segment that owns Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system; and other DAPL connections. Hess Midstream LP was formerly known as Hess Midstream Partners LP and changed its name to Hess Midstream LP in December 2019. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.

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Frequently Asked Questions

Is Hess Midstream LP (HESM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Hess Midstream LP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Hess Midstream LP's debt ratio?

Hess Midstream LP's debt ratio is 46.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 86.0%.

What are Hess Midstream LP's key financial metrics?

Hess Midstream LP has a market capitalization of $8.3B, trailing P/E ratio of 13.9, and revenue of $1.6B. The company maintains a gross margin of 77.1% and a net margin of 21.8%. Return on equity stands at 151.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.