Cushing Asset Management Fully Exits Hess Midstream Position

Cushing Asset Management, operating as NXG Investment Management, has completely exited its position in Hess Midstream LP (HESM) during the first quarter of 2026. According to SEC filings, the firm sold 1,357,200 shares, with the transaction valued at approximately $50.29 million based on average closing prices for the period. The exit follows a gradual reduction in exposure, as the fund had previously trimmed its stake in the fourth quarter of 2025. While Hess Midstream once ranked as a top-ten holding for the firm, it has been replaced by larger, multi-basin pipeline operators with broader geographic exposure. This strategic shift appears to be driven by a preference for diversification over concentration. Hess Midstream's asset base is primarily focused in the Bakken region and relies significantly on a single core customer, Chevron Corporation, following Chevron's acquisition of Hess. Despite the liquidation by Cushing, Hess Midstream continues to operate as a predictable, income-oriented business. Its reliance on long-term, fee-based contracts provides a stable distribution profile for investors who prioritize yield over broad diversification across multiple basins.