Mergers & Acquisitions ·
Hess Midstream agrees to acquire Chevron's DJ Basin assets and become independent, reducing shares by nearly 40%
HESMHess Midstream LP
Hess Midstream LP entered into a definitive agreement with Chevron to acquire crude oil and natural gas gathering and storage assets in the Denver Julesburg Basin for $200 million in cash plus working capital adjustments. Concurrently, Chevron will contribute 100% of its consolidated ownership interests in Hess Midstream and its general partner to the company, resulting in the cancellation of those shares and a reduction in outstanding Class A shares by nearly 40%. The transaction establishes Hess Midstream as an independent multi-basin midstream operator, with expected closing by year-end 2026. Chevron will also amend existing Bakken commercial agreements to reduce tariffs and extend terms through 2045. Following the transaction, all Chevron-affiliated directors are expected to resign, and shareholders will gain the right to elect board members starting in 2028. Hess Midstream LP operates fee-based midstream assets for crude oil, natural gas, and water gathering, processing, and storage primarily in the Bakken and DJ Basins.