Chevron to Divest Hess Midstream Interests in Exchange for Lower Bakken Costs

Chevron agreed to transfer its Hess Midstream ownership interests, general partner position and DJ Basin crude midstream assets to Hess Midstream in exchange for $200 million and revised contracts expected to reduce its Bakken midstream costs by about 50%. The transaction would deconsolidate approximately $3.7 billion of Hess Midstream debt and is expected to improve Chevron’s return on capital employed by 0.5 percentage points, but Chevron expects a one-time after-tax special-item loss of $3 billion to $4 billion; closing is subject to regulatory and customary approvals and is expected by year-end 2026.