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This balance between high-growth assets like Bakken and Guyana and cash-generating regions ensures that Hess remains less vulnerable to drastic oil price fluctuations. This diversified approach provides a safety net, especially if crude prices dip, lending more predictability to Hess's long-term financial performance compared to companies solely focused on shale plays.
Opportunities for Income Investors
For investors looking for income opportunities, Hess has created a midstream entity known as Hess Midstream. This entity offers a 6% yield while exhibiting a robust growth potential for distributions, projected at around 15% annually.