Hess Midstream LP (Hess Midstream LP) Gross Margin % : 85.96% (As of Mar. 2024)

View and export this data going back to 2017. Start your Free Trial

What is Hess Midstream LP Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hess Midstream LP's Gross Profit for the three months ended in Mar. 2024 was $305 Mil. Hess Midstream LP's Revenue for the three months ended in Mar. 2024 was $355 Mil. Therefore, Hess Midstream LP's Gross Margin % for the quarter that ended in Mar. 2024 was 85.96%.

The historical rank and industry rank for Hess Midstream LP's Gross Margin % or its related term are showing as below:

HESM' s Gross Margin % Range Over the Past 10 Years
Min: 79.9 Med: 83.98 Max: 86.24
Current: 86.05

During the past 12 years, the highest Gross Margin % of Hess Midstream LP was 86.24%. The lowest was 79.90%. And the median was 83.98%.

HESM's Gross Margin % is ranked better than
95.91% of 928 companies
in the Oil & Gas industry
Industry Median: 27.905 vs HESM: 86.05

Hess Midstream LP had a gross margin of 85.96% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hess Midstream LP was 0.90% per year.

Hess Midstream LP Gross Margin % Historical Data

The historical data trend for Hess Midstream LP's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hess Midstream LP Gross Margin % Chart

Hess Midstream LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

83.19

85.63

86.24

85.76

85.70

Hess Midstream LP Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															84.42	85.40	86.80	85.98	85.96

Competitive Comparison of Hess Midstream LP's Gross Margin %

For the Oil & Gas Midstream subindustry, Hess Midstream LP's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hess Midstream LP's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Hess Midstream LP's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hess Midstream LP's Gross Margin % falls into.

Hess Midstream LP Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hess Midstream LP's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1153.6	/	1346.1
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1346.1 - 192.5)	/	1346.1
	=	85.70 %

Hess Midstream LP's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	304.9	/	354.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(354.7 - 49.8)	/	354.7
	=	85.96 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Hess Midstream LP (NYSE:HESM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Hess Midstream LP had a gross margin of 85.96% for the quarter that ended in Mar. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Hess Midstream LP Gross Margin % Related Terms

Thank you for viewing the detailed overview of Hess Midstream LP's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Hess Midstream LP (Hess Midstream LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Hess Midstream LP (NYSE:HESM) » Definitions » Gross Margin %

Comparable Companies

VNOM NS KNTK DHT INSW GLNG TNK HEP GEL LPG TSX:ENB EPD WMB ET LNG OKE MPLX KMI TSX:TRP CQP

Traded in Other Exchanges

N/A

Address

1501 McKinney Street, Houston, TX, USA, 77010

Website

https://www.hessmidstream.com

Hess Midstream LP owns, operates, develops, and acquires a diverse set of midstream assets and provides fee-based services to Hess and third-party customers. It conducts its business through three operating segments: gathering, processing and storage, and terminaling and exporting. The company derives the maximum revenue from the gathering segment. Its gathering segment consists of the following assets namely Natural Gas Gathering and Compression; Crude Oil Gathering and Produced Water Gathering and Disposal.

Executives

Global Infrastructure Investors Ii, Llc	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE PARTNERS, 12 E. 49TH STREET, NEW YORK NY 10017
Hess Corp	director, 10 percent owner	1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Jonathan C. Stein	officer: Chief Financial Officer	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John A. Gatling	officer: President and COO	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Geurt G Schoonman	director	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
James K Lee	director	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Gip Ii Blue Holding, L.p.	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE MANAGEMENT LLC, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Letwin Stephen J J	director	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John B Hess	director, officer: Chairman and CEO	C/O HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Global Infrastructure Gp Ii, L.p.	director, 10 percent owner	12 EAST 49TH STREET, 38TH FLOOR, NEW YORK NY 10017
J Patrick Reddy	director
Hess Infrastructure Partners Gp Llc	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Hess Midstream Gp Llc	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Hess Midstream Gp Lp	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Gip Blue Holding Gp, Llc	director, 10 percent owner	12 EAST 49TH STREET, 38TH FLOOR, NEW YORK NY 10017