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Why Hess Midstream’s Drop Could Signal a Buying Opportunity

Hess Midstream’s 20% price slide after Chevron’s stake sale looks like an overreaction, offering income and growth potential.

Hess Midstream (HESM) recently dropped 20% after Chevron announced it would divest its stake. This spooked some investors, but the facts tell a different story. Chevron isn’t leaving the business altogether—it’s extending commitments through 2045 and cutting fee rates by 40%, which naturally lowers short-term income but could unlock longer-term stability. HESM now boasts a juicy 10% dividend yield with plans to raise payouts, plus a 40% share count cut that should improve earnings per share. For investors who can wait out this volatility, this looks like a rare chance to buy into a strong midstream energy pipeline with solid cash flow. Locally, Sasol is in a different space but the rand-sensitive energy sector should watch how global midstream firms argue pricing models amid shifting oil dynamics. This view might be wrong if oil demand falls sharply or regulatory hurdles rise, hurting infrastructure cash flows. But right now, the market seems to have overdone the knee-jerk reaction. this is just our opinion and not financial advice