Chevron to divest midstream assets in Bakken restructuring
CVX•Chevron agreed to sell its stakes in Hess Midstream and transfer DJ Basin crude oil midstream assets to Hess Midstream as part of a restructuring expected to cut Bakken midstream costs by about 50%. Chevron expects to receive $200 million, remove about $3.7 billion of debt from its balance sheet and record a one-time after-tax loss of about $3 billion to $4 billion.
1. Restructuring terms
Chevron said the deal revises and extends its Bakken midstream agreements, with contracts running through 2045 and lower tariffs. In exchange for transferring its DJ Basin crude oil midstream assets to Hess Midstream, Chevron will receive $200 million in cash, longer Bakken contracts on revised terms and new DJ Basin midstream contracts.
2. Expected impact
The transaction would remove Hess Midstream from Chevron’s balance sheet, including about $3.7 billion of the unit’s debt. Chevron expects the deal to close by year-end and to record a one-time after-tax loss of about $3 billion to $4 billion. Chevron is expected to reduce its Bakken drilling rigs from three to two in December 2026.
