Hess Midstream to acquire Chevron’s DJ Basin assets for $200 million, ending Chevron’s stake
Hess Midstream Partners LP announced a purchase‑and‑sale agreement with Chevron to buy its DJ Basin midstream platform and Chevron’s ownership interest in Hess. The $200 million cash deal will cut Hess’s unit share count by about 40 % and make the partnership fully owned by public investors. The transaction is expected to close by the end of 2026 and includes long‑term fixed‑fee service contracts through 2045. Management said the acquisition will expand crude gathering capacity three‑fold and support a multi‑basin growth strategy.
Why it matters
The company projects 2026 net income of $650 million‑$675 million and adjusted EBITDA of $1.225 billion‑$1.25 billion, indicating higher cash‑flow generation. Analysts at TipRanks rate the stock as a Sell with a $39 price target.
Key facts
- 1Hess Midstream will pay $200 million in cash plus working‑capital adjustments for the DJ Basin assets. tradingview.com
- 2The acquisition will reduce Hess’s unit share count by about 40 %. finance.yahoo.com
- 3Closing is targeted for the end of 2026. rttnews.com
- 4Projected 2026 net income is $650 million‑$675 million. rttnews.com
- 5Projected 2026 adjusted EBITDA is $1.225 billion‑$1.25 billion. rttnews.com
- 6Preliminary 2027 adjusted EBITDA guidance is $900 million with capital spending of $125 million. finance.yahoo.com
Open questions
- 2026 adjusted EBITDA range ($1.225 billion‑$1.25 billion) differs from 2027 guidance ($900 million) (materials 2 and 3).
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.