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Biden’s planned gas tax holiday would only make things worse, Hess CEO says (NYSE:HES)

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President Biden’s plan to suspend the federal gasoline tax would hurt U.S. drivers, because it would boost demand at a time when inventory is tight, thus raising prices, Hess (NYSE:HES) CEO John Hess said Thursday.

“The key to getting oil prices under control is to grow inventory; you only do that by increasing supply and tempering demand,” the CEO said, according to Bloomberg.

The company expects to add a fourth rig next month in North Dakota’s Bakken shale, John Hess said, after previously anticipating adding the rig sometime before the end of the year.

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Hess (HES) expects the additional rig would lift its Bakken production to 200K boe/day by 2024, and hold Bakken output at that level until the end of the decade without adding a fifth rig, the CEO said.

Hess’ (HES) 2026 free cash flow yield is expected to come in at ~8% with significant additional cash flow potential at current prices, The Value Portfolio writes in a bullish analysis published recently at Seeking Alpha.

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