Hess Midstream announces restructuring with Chevron, cuts 2027 EBITDA outlook
Hess Midstream Partners LP disclosed a definitive agreement with Chevron Corp that will make the midstream business independent and transfer Chevron's Denver‑Julesburg Basin assets. The transaction reduces the share count by about 40% and lowers the 2027 Adjusted EBITDA guidance to $850‑$950 million, down from the 2026 range of $1.225‑$1.250 billion. Chevron will receive $200 million in cash and the deal is slated to close by the end of 2026.
Why it matters
The company said the lower earnings base will force a pause in distribution growth after Q4 2026, which could affect income‑focused investors (the company indicated this in its press release). The share‑count reduction and new tariff structure also change the capital structure and cash‑flow profile for shareholders.
Key facts
- 1Hess Midstream shares fell 15% after the announcement. uk.investing.com
- 2Revised 2027 Adjusted EBITDA guidance is $850 million to $950 million. uk.investing.com
- 3Revised 2026 Adjusted EBITDA guidance is $1.225 billion to $1.250 billion. uk.investing.com
- 4The transaction is expected to close by year‑end 2026. uk.investing.com
- 5Chevron will receive $200 million in cash at closing. uk.investing.com
- 6The number of outstanding shares is expected to decrease by nearly 40% upon closing. stocktitan.net
Summary written by AlphAI from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.