Why Hess Corp is One of the Best Oil Stocks to Watch in the Bakken

TL;DR

Hess focuses on Bakken and Guyana plays for growth, partnering with Exxon, utilizing high-margin assets, including a 6% yielding midstream entity.

Transcript

Nick Sciple: Let's talk about another player in the Bakken region. That's Hess Corporation, HES. Hess has some plays going on in the Bakken. They're also involved in Guyana. They partnered with Exxon to drill one of the largest offshore discoveries in recent memory. Do you want to talk about what's going on with Hess? What's going on in the Bakken ... Read More

Key Insights

• 🖐️ Hess strategically focuses on high-growth opportunities in the Bakken and Guyana plays.
• 🍉 Partnership with Exxon in Guyana provides access to significant long-term returns.
• ✋ Utilizing high-margin assets like the midstream entity ensures stable income streams.
• 💐 Hess aims for steady growth by balancing growth engines with cash flow drivers.
• 🦺 The midstream entity offers a safe investment opportunity with growth potential.
• 👻 Hess' strategy allows for resilience against oil price fluctuations.
• ↩️ Exxon's expertise in drilling and returns boosts the partnership with Hess.

Questions & Answers

Q: How does Hess Corporation prioritize its assets for growth?

Hess strategically focuses on the Bakken and Guyana plays, considering them growth engines while using high-margin assets like the midstream entity for steady income.

Q: What advantages does Hess gain from partnering with Exxon in Guyana?

Partnering with Exxon allows Hess to benefit from Exxon's expertise in drilling, producing long-term returns, and doubling earnings potential by 2025.

Q: How does Hess manage to mitigate risks associated with fluctuating oil prices?

Hess reduces risks by diversifying its portfolio with high-margin assets, like the Bakken and midstream entity, ensuring steady income streams even in volatile price environments.

Q: What opportunities does Hess Midstream offer for income-focused investors?

Hess Midstream provides a 6% yield with steady cash flow from gathering pipelines, offering a safe investment with growth potential and the ability to generate stable income.

Summary & Key Takeaways

• Hess Corporation strategically focuses on Bakken and Guyana plays for growth.

• The partnership with Exxon in Guyana provides advantageous opportunities for long-term returns.

• Hess also benefits from high-margin assets like the Bakken and a 6% yielding midstream entity for income-focused investors.