Independent Hess Midstream Spawned in Chevron Divestment

The Competition and Consumer Commission of Singapore (CCS) is seeking public feedback on Eneos Apac's proposed acquisition of Chevron Singapore, a petroleum distributor. The CCS is evaluating whether the deal would violate competition laws. Chevron Singapore operates under brands like Chevron, Caltex, and Delo, while Eneos is a Japan-based energy group. Eneos Apac claims the acquisition will not raise competitive concerns. Public submissions are open until Oct 16.

Chevron agreed to transfer its ownership in Hess Midstream and DJ Basin assets to Hess Midstream LP in exchange for improved Bakken midstream terms and $200M. The deal aims to cut Chevron's Bakken midstream costs by 50%, boosting earnings and return on capital. Chevron expects a $3-4B after-tax loss at closing but anticipates long-term value. The transaction is set to close by year-end 2026, pending approvals.

Hurricane Isaias has forced the shutdown of 63% of U.S. Gulf offshore oil output, according to the Marine Minerals Administration. This includes 1.28 million barrels of daily oil production and 1.13 billion cubic feet of natural-gas production. Shell and Chevron have evacuated personnel and halted operations at several Gulf facilities. The storm may impact fuel prices in Texas, where gasoline averages $3.87 per gallon.

Hess Midstream (HESM) expects a nearly 40% drop in its share count. Chevron will contribute 100% of its consolidated ownership interests in HESM. The deal includes Chevron selling Class A Shares and Class B Units, and transferring Class B shares. The transaction is expected to close by year-end 2026, subject to conditions. HESM will pay $200 million plus closing working capital of CMH.

Hess Midstream LP (HESM) will acquire Chevron's DJ Basin assets and Chevron's stake in Hess Midstream, reducing HESM's share count by 40% and creating a multi-basin midstream company. The deal includes $200M in cash and fixed-fee contracts over 670K acres. HESM's board will become independent by 2028. Analysts rate HESM stock as Sell with a $39 target, while TipRanks' AI rates it Neutral.

Hess Midstream (HESM) agreed to acquire Chevron's DJ Basin midstream assets for $200M in cash, plus working capital. The deal includes long-term service contracts with Chevron through 2045, a two-year transition agreement, and an amended secondment framework. The existing omnibus agreement will be terminated at closing.