Chevron to divest Hess Midstream stake and DJ Basin assets, cutting Bakken costs by half
Chevron announced it will sell its ownership interest in Hess Midstream and its DJ Basin crude‑midstream assets for $200 million. The transaction restructures Bakken midstream contracts, lowering unit costs by about 50% and deconsolidating roughly $3.7 billion of Hess Midstream debt. Chevron expects a one‑time after‑tax loss of $3‑$4 billion, with the deal slated to close by the end of 2026.
Why it matters
The loss will reduce Chevron’s net earnings in the short term but the debt removal improves its balance‑sheet leverage. Hess Midstream’s shares fell 15‑16% as the company lowered its 2027 adjusted EBITDA guidance to $850‑$950 million, down from $1.225‑$1.250 billion, reflecting reduced tariff revenue.
Key facts
- 1Chevron will receive $200 million in cash for the sale of its Hess Midstream stake and DJ Basin assets. ogj.com
- 2The revised Bakken contracts are expected to cut Chevron’s midstream costs by about 50%. ogj.com
- 3Chevron expects to record a one‑time after‑tax loss of $3‑$4 billion from the transaction. ogj.com
- 4The deal will deconsolidate approximately $3.7 billion of Hess Midstream debt from Chevron’s balance sheet. ogj.com
- 5The transaction is expected to close by year‑end 2026, subject to customary approvals. tradingview.com
- 6Hess Midstream revised its 2027 adjusted EBITDA guidance to $850 million‑$950 million, down from $1.225‑$1.250 billion in 2026. uk.investing.com
Summary written by AlphAI AI Desk from 20 of 34 sources. Not investment advice. Figures are as stated by the linked sources.