Mergers & Acquisitions ·
Chevron agrees to divest Hess Midstream and DJ Basin assets for $200M cash, expects $3-4B loss
CVXChevron Corp
Chevron entered into definitive agreements with Hess Midstream LP to restructure Bakken midstream contracts and establish new DJ Basin contracts. In exchange for extended commercial terms that reduce Bakken unit midstream costs by approximately 50% and $200 million in cash, Chevron will transfer its ownership interests and general partner position in Hess Midstream, along with its DJ Basin crude oil midstream assets. The transaction is expected to be accretive to return on capital employed by 0.5% and fully deconsolidate Hess Midstream, including approximately $3.7 billion of debt. Chevron anticipates recognizing a one-time after-tax loss estimated at approximately $3 to $4 billion upon closing, which will be treated as a special item. The deal is subject to customary closing conditions and regulatory approvals and is expected to close by year-end 2026. Chevron Corporation is an integrated energy company engaged in crude oil and natural gas production, refining, chemicals manufacturing, and renewable energy development.