Chevron to transfer Hess Midstream stake and DJ Basin assets for $200M

Chevron agreed to transfer its Hess Midstream ownership and general partner stake, plus its DJ Basin crude midstream assets, to Hess Midstream for $200 million in cash. The same agreements restructure and extend the Bakken midstream contracts, which Chevron expects to cut its Bakken unit midstream costs by about 50%. Chevron expects to deconsolidate about $3.7 billion of Hess Midstream debt and to record a one-time after-tax loss of $3 to $4 billion at closing.

• Consideration: $200 million in cash to Chevron
• Bakken unit midstream costs expected to fall about 50%; contracts extended
• About $3.7 billion of Hess Midstream debt to be deconsolidated
• One-time after-tax loss of about $3 to $4 billion at closing; closing expected by year-end 2026