Chevron to transfer Hess Midstream stake and DJ Basin assets for $200 million
CVX•Chevron will transfer its Hess Midstream ownership interests and general partner position, along with DJ Basin crude oil midstream assets, to Hess Midstream for $200 million in cash and revised midstream contracts.
1. Terms and timing
The revised Bakken contracts are expected to cut unit midstream costs by about 50%, and Chevron expects to deconsolidate Hess Midstream, including about $3.7 billion of debt. Closing is targeted by year-end 2026, subject to customary conditions and regulatory approvals. At closing, Chevron estimates a one-time after-tax loss of about $3 billion to $4 billion and expects the transaction to lift return on capital employed by 0.5% on an absolute basis.
