Chevron to Divest Hess Midstream Stake and DJ Basin Assets

Chevron agreed to transfer its Hess Midstream ownership interests and DJ Basin crude oil midstream assets to Hess Midstream in exchange for $200 million and revised Bakken contracts expected to cut unit midstream costs by about 50%. The transaction is expected to remove approximately $3.7 billion of Hess Midstream debt from Chevron’s consolidated balance sheet and improve return on capital employed by 0.5%, but Chevron anticipates a one-time after-tax loss of $3 billion to $4 billion at closing, which is expected by year-end 2026 subject to approvals.