Why Cushing Sold Out of Hess Midstream LP -- and What It Means for Investors
Key Points
Exited 1,357,200 shares in Hess Midstream; estimated transaction value was $50.29 million based on quarterly average price.
Quarter-end position value declined by $46.82 million, reflecting both share sale and price movement effects.
Represents a 2.49% change in 13F reportable assets under management (AUM).
Post-trade, the fund held zero shares.
The position was previously 2.7% of the fund's AUM as of the prior quarter.
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What happened
According to a Securities and Exchange Commission (SEC) filing dated April 28, 2026, Cushing Asset Management, LP dba NXG Investment Management sold all 1,357,200 shares of Hess Midstream (NYSE:HESM) in the first quarter. The estimated transaction value was $50.29 million, calculated using the average closing price for the quarter. The quarter-end value of the position declined by $46.82 million, reflecting both the share sale and stock price changes.
What else to know
- This was a complete exit; Hess Midstream now represents none of the fund's 13F AUM.
- Top holdings after the filing:
- NYSE:TRGP: $163.55 million (8.1% of AUM)
- NYSE:ET: $154.35 million (7.7% of AUM)
- NYSE:WMB: $123.73 million (6.2% of AUM)
- NYSE:MPLX: $106.10 million (5.3% of AUM)
- NYSE:DTM: $97.92 million (4.9% of AUM)
- As of April 27, 2026, Hess Midstream shares were priced at $37.02, up 3.2% over the past year, underperforming the S&P 500 by 26.34 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.62 billion |
| Net income (TTM) | $352.90 million |
| Dividend yield | 7.84% |
| Price (as of market close April 27, 2026) | $37.02 |
Company snapshot
- Owns and operates natural gas and crude oil gathering systems, gas processing and storage facilities, and terminaling and export assets in the U.S. midstream energy sector.
- Operates through three segments: Gathering; Processing and Storage; and Terminaling and Export.
- Headquartered in Houston, Texas, with a strategic focus on supporting upstream oil and gas development.
Hess Midstream is a leading U.S. midstream energy partnership focused on the ownership and operation of critical infrastructure supporting upstream oil and gas development. The company leverages its integrated asset base and long-term contracts to deliver stable earnings and attractive distributions. Its strategic position in key production areas and strong customer relationships underpin its competitive advantage in the midstream sector.
What this transaction means for investors
The top five holdings in Cushing’s portfolio are midstream energy names. In fact, the energy sector factors heavily into its entire portfolio; as of Q3 2025, Hess Midstream ranked No. 6. Cushing trimmed its share count in Q4, moving Hess Midstream down to No. 15, and in Q1 2026, it exited completely.
While notable, the move appears to reflect a shift within the sector rather than away from it. The fund’s top holdings are currently large, diversified pipeline operators with multi-basin exposure. By comparison, Hess Midstream has a more concentrated asset base, focusing primarily in the Bakken region with a single core customer: Chevron Corporation, following its acquisition of Hess. As a result, Cushing may have chosen to allocate capital in more diversified midstream operators with broader exposure and more balanced risk profiles.
That said, Hess Midstream is still a predictable, income-oriented business with long-term, fee-based contracts. Whether it’s a fit for an individual investor’s portfolio depends on their preference for stability vs. diversification. For investors already diversified across sectors, Hess Midstream can serve as a stable, income-generating foundation within the energy space.
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Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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