Continental Resources Takes Hess to Court Over Midstream Fees

Continental Resources has filed suit against Hess Corp, alleging that Hess inflated service fees through related-party deals with its 38 %-owned midstream arm, Hess Midstream Partners. Continental claims this self-dealing cost it $34-69 million in net revenue from its non-operating interests in hundreds of North Dakota wells.

In its Houston federal complaint, Continental argues that Hess Bakken Investments—operator of roughly 483 Williston Basin wells—charged above-market rates for gas processing, oil terminaling, and water gathering. By funnelling those inflated fees back into Hess Midstream, Continental and other minority stakeholders saw their hydrocarbon netbacks collapse.

Meanwhile, Hess Midstream reported an 8 % rise in gas processing volumes and a 9 % jump in water gathering in Q1, as per its latest earnings release. To see how these segment results have flowed through to Hess's financials—and to spot any unusual inter-company billing—review the company's disclosures via the SEC Filings API and track year-over-year midstream revenue trends with the Financial Growth Statement Analysis API.

Key Takeaways

• Alleged Self-Dealing: Continental claims Hess prioritised midstream profits over fair treatment of working-interest partners.

• Revenue Impact: Tens of millions lost in netbacks could be clawed back if the court rules in Continental's favor.

• Watch for Repricings: Should Continental prevail, expect Hess to revisit fee structures and enhance transparency in midstream agreements.