NEW YORK ( TheStreet) -- I was talking today with Jim Cramer about Hess (HES) and its positive moves of asset sales and share buybacks. The company's fantastic execution has made it a real value buy in the exploding shale oil play of the Bakken.
Part of the reason that Hess looks so good to me has been because of the other stock juggernaut that has been the vanguard of Bakken success:
Pioneer Natural Resources
, a stock that Jim prefers.
I totally get that -- Pioneer has been on an incredible run, now trading over $200 a share. You could have bought Pioneer at close to half that at the start of the year. There is no doubt that Pioneer has incredible momentum and may not be fairly valued yet, even after doubling its price in the last 10 months.
Pioneer's success is attributable to its Bakken assets -- assets that Hess can match if not better. Hess has embarked on a $5 billion restructuring plan, selling terminal and refinery assets, retiring debt and trying to become a dedicated exploration and production company. With every asset sale not related to exploration and production, Hess' assets in the Bakken gain more and more relative weight to its net asset value.
Those assets have been grossly undervalued compared to runaway monsters like Pioneer and
. When those resources get fairly valued, Hess's share price will see some spectacular gains as well.
Jim and I debate the relative merits of Pioneer Natural Resources and Hess further in the video above.
At the time of publication the author had positions in EOG and HES.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.