Hess MidstreamCentrus Energy

Hess Midstream vs Centrus Energy

Hess Midstream (Hess Midstream Operations LP) and Centrus Energy (Centrus Energy Corp) are contrasted in this page. It compares business models, financial performance, and market context to provide a ...

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OPEC+ Opens The Taps: Midstream's Moment

OPEC+ Opens The Taps: Midstream's Moment

OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.

Published: July 25, 2025

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Natural Gas Drilling Revival Play

Natural Gas Drilling Revival Play

A carefully selected group of stocks poised to benefit from the recent upturn in U.S. natural gas drilling activity. Our professional analysts have identified companies across the entire natural gas value chain that could see improved performance as drilling rebounds for the first time in twelve weeks.

Published: July 20, 2025

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Investment Analysis

Hess Midstream

Pros

  • Hess Midstream benefits from stable, fee-based revenue streams due to its integrated infrastructure serving oil production in the Bakken region.
  • The company has demonstrated strong cash flow generation and increased shareholder returns through higher distributions and unit repurchases.
  • Recent upgrades to investment-grade credit ratings have improved Hess Midstream's financial position and access to capital markets.

Considerations

  • Hess Midstream faces exposure to commodity price fluctuations, which can impact throughput volumes and profitability.
  • Growth plans have been scaled back due to reduced drilling activity by key customers, raising concerns about future expansion prospects.
  • The business is capital-intensive, requiring ongoing investment in infrastructure that could pressure margins if volumes decline.
Centrus Energy

Pros

  • Centrus Energy has delivered a very high return on equity, significantly above both its historical average and industry peers.
  • The company operates in a niche sector with growing demand for nuclear fuel and technical solutions, supporting long-term growth potential.
  • Centrus Energy benefits from diversified operations across uranium enrichment and technical services, reducing reliance on a single revenue stream.

Considerations

  • The company's profitability has been volatile, with return on equity fluctuating sharply due to market and operational factors.
  • Centrus Energy is exposed to regulatory and geopolitical risks associated with nuclear fuel supply and international markets.
  • The business faces significant capital requirements for maintaining and expanding its enrichment and technical infrastructure.

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