Hess Midstream: The Issue Continues To Be The Bakken Upstream Business

Long PlayerInvesting Group LeaderFollow5ShareSavePlay(8min)Comments(4)SummaryHess Midstream faces risk as its core Bakken acreage remains high-cost and lacks profitability.Both HESM and Chevron confirm Bakken production will remain flat at 200,000 BOED. The rig count is now down to three.The lack of production growth limits HESM's future prospects. Current dividend increases serve as a short-term distraction.Chevron is likely to prioritize capital allocation to more profitable assets.This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » Denis Shevchuk/iStock via Getty Images The last article (and articles before that) has long mentioned that Hess never achieved a satisfactory level of profitability in the Bakken. That is way more important than anything Hess Midstream (HESMThis article was written byLong Player25.56K FollowersFollowLong Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of XOM CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation for the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits its own investment qualifications.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.