Hunton Advises Evercore on Hess Midstream’s Acquisition of Chevron’s DJ Basin Assets
Hunton Andrews Kurth advised Evercore on Hess Midstream's acquisition of Chevron's DJ Basin assets, expected to close by 2026. Hess Midstream aims to become an independent, multi-basin midstream company. Evercore is a leading M&A advisor.
How this was made
The 30-second read
Why it matters
The transaction reshapes asset ownership in the DJ Basin, expanding Hess Midstream while allowing Chevron to streamline its portfolio.
Market read
First public disclosure of a midstream acquisition that could affect midstream sector dynamics and the balance sheets of Hess Midstream and Chevron.
What to watch
Potential regulatory approvals and integration costs may affect the net benefit.
Background
A law firm announced its advisory role in a midstream acquisition involving two major energy companies.
Ticker impact
Hess Midstream is acquiring Chevron's DJ Basin crude oil and gas gathering and storage assets, creating a larger independent midstream platform.
likely upside as the market prices in increased fee income and scale benefits
Deal adds significant midstream capacity and diversifies revenue, which investors typically view favorably.
Chevron is divesting its DJ Basin gathering and storage assets to Hess Midstream.
potential modest pressure as the market assesses the impact of reduced midstream earnings
The divestiture is a routine portfolio optimization; impact depends on how the proceeds are redeployed.
Market effects
Midstream sector may see consolidation pressure as larger platforms emerge.
U.S. energy infrastructure investors could adjust exposure to midstream assets.
Limited to U.S. energy and midstream markets.
Counterpoint
The deal could overextend Hess Midstream's balance sheet, leading to execution risk.
Key entities
- Law FirmHunton Andrews Kurth LLP
Advises Evercore on the transaction.
- Financial AdvisorEvercore
Acts as financial advisor to Hess Midstream's board.
