Cushing Asset Management Sells $32 Million of Hess Midstream Despite Its Steady Income Profile
Key Points
Cushing Asset Management sold 960,000 shares of Hess Midstream; estimated transaction value of $32.28 million (estimate based on quarterly average price)
Quarter-end position value dropped by $33.24 million, reflecting both trading activity and stock price movement
Deal represented 1.85% of reportable AUM for the quarter
After the trade, the fund held 1,357,200 shares valued at $46.82 million
Hess Midstream stake now accounts for 2.69% of fund AUM, placing it outside the fund's top five holdings
- 10 stocks we like better than Hess Midstream ›
What happened
According to a Securities and Exchange Commission (SEC) filing dated January 27, 2026, Cushing Asset Management sold 960,000 shares of Hess Midstream in the fourth quarter of 2025. The estimated transaction value was $32.28 million, based on the average unadjusted closing price during the quarter. The quarter-end value of the position decreased by $33.24 million, capturing both trading and stock price moves.
What else to know
The fund executed a sell, reducing its stake in Hess Midstream to approximately 2.69% of its reportable assets under management as of December 31, 2025
Top five holdings after the filing:
- NYSE:ET: approximately $131.78 million (approximately 7.6% of AUM)
- NYSE:TRGP: approximately $125.70 million (approximately 7.2% of AUM)
- NYSE:MPLX: approximately $100.54 million (approximately 5.8% of AUM)
- NYSE:WMB: approximately $95.88 million (approximately 5.5% of AUM)
- NYSE:OKE: approximately $95.40 million (approximately 5.5% of AUM)
As of January 26, 2026, shares of Hess Midstream were priced at $35.13, reflecting a one-year move of approximately -5.7% and underperforming the S&P 500 by 22.10 percentage points.
Company/Etf overview
| Metric | Value |
|---|---|
| Price (as of market close January 26, 2026) | $35.13 |
| Market capitalization | $7.88 billion |
| Revenue (TTM) | $1.62 billion |
| Dividend yield | 7.94 % |
Company/Etf snapshot
Hess Midstream is a leading energy infrastructure company specializing in the ownership and operation of critical midstream assets across the oil and gas value chain. The partnership leverages long-term contracts and a stable customer base to deliver consistent cash flow and support a robust dividend yield. Its integrated network and strategic locations provide a competitive advantage in serving producers in key U.S. energy basins.
The company owns and operates midstream infrastructure, including natural gas and crude oil gathering pipelines, gas processing plants, and storage and terminal facilities. Hess Midstream is headquartered in Houston, Texas, and serves energy producers in key U.S. basins.
What this transaction means for investors
Hess Midstream is recognized for generating steady income in the energy sector, valued for converting pipeline volumes into consistent cash distributions. This stability relies on reliable throughput and disciplined balance sheet management.
Hess Midstream owns and operates pipelines, gas processing plants, storage facilities, and export terminals that transport oil and natural gas from production sites to market. Its revenue is primarily fee-based and supported by long-term agreements with producers, which provides visibility into cash flow. Unlike upstream companies, its profitability does not depend on oil price fluctuations. Instead, its value proposition centers on stable throughput, disciplined capital spending, and the ability to convert operating cash flow into consistent distributions.
Investors should monitor the company’s cash flow coverage of distributions and the stability of its volumes. If cash flow continues to support distributions and debt remains controlled, Hess Midstream remains attractive as an income-focused infrastructure investment. The balance between dependable fee-based cash flow and upstream production activity shapes the stock’s risk and return profile.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy.
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