Continental Resources has taken legal action against Hess Corp, claiming Hess inflated service fees through related-party transactions with its midstream subsidiary, Hess Midstream Partners. Continental alleges these self-dealing practices cost the company between $34 million and $69 million in net revenue from its interests in dozens of North Dakota wells.

The lawsuit, filed in Houston, contends that Hess Bakken Investments, which operates around 483 wells in the Williston Basin, charged above-market rates for gas processing, oil terminaling, and water gathering services, negatively impacting Continental and other minority stakeholders.

Key Points from the Case

• Alleged Self-Dealing: Continental asserts Hess prioritized profit maximization over fair dealings with its partners.

• Potential Recovery: A ruling in Continental’s favor could lead to recovery of tens of millions in lost revenues.

• Fee Structure Reevaluation: If the court rules against Hess, the company may need to reconsider its service fees and enhance transparency in its midstream partnerships.

The outcome of this case could have far-reaching implications for Hess’s future financial strategies and stakeholder relations, as industry observers will be watching closely as it develops.