Chevron to sell Hess Midstream stake and DJ Basin assets for $200 million
Chevron announced it will transfer its ownership in Hess Midstream LP and DJ Basin crude‑midstream assets to Hess Midstream in exchange for $200 million cash and revised Bakken contracts. The restructuring is expected to cut Chevron’s Bakken midstream costs by about 50% and de‑consolidate Hess Midstream’s debt. The transaction is slated to close by the end of 2026 and will generate a one‑time after‑tax loss of $3‑$4 billion.
Why it matters
Chevron said the deal will create a one‑time after‑tax loss of $3‑$4 billion, but the 50% reduction in Bakken midstream costs should improve earnings and return on capital thereafter. The cash payment and debt removal also strengthen Chevron’s balance sheet.
Key facts
- 1Chevron will receive $200 million in cash as consideration for the transfer. tradingview.com
- 2Chevron expects a one‑time after‑tax loss of $3‑$4 billion at closing. tradingview.com
- 3The transaction is expected to close by year‑end 2026. tradingview.com
- 4Chevron will de‑consolidate approximately $3.5 billion of Hess Midstream debt from its balance sheet. industrialinfo.com
- 5Chevron will de‑consolidate approximately $3.7 billion of Hess Midstream debt from its balance sheet. rigzone.com
- 6The revised Bakken contracts are projected to cut Chevron’s midstream costs in the Bakken by about 50%. tradingview.com
Open questions
- Debt removal figure differs: $3.5 billion (material 7) vs $3.7 billion (material 14).
Summary written by AlphAI from 15 of 15 sources. Not investment advice. Figures are as stated by the linked sources.