United States · Business news · Corporate · 07 Oct 2026
US Energy
Chevron is transferring its ownership and general-partner position in Hess Midstream, together with its DJ Basin crude gathering assets, to Hess Midstream in return for $200 million in cash and revised Bakken contracts that run to 2045. Chevron says the new terms roughly halve its unit midstream costs in the Bakken. It will stop consolidating about $3.7 billion of Hess Midstream debt and take a one-time after-tax loss of $3 billion to $4 billion at closing, planned for the end of 2026. Chevron also plans to go from three Bakken rigs to two in December.
Chevron inherited the pipeline company with its Hess purchase; this deal trades an accounting loss now for lower operating costs in North Dakota and a balance sheet without $3.7 billion of consolidated debt, and the company puts the gain at 0.5 percentage points of return on capital employed. Hess Midstream becomes an independent gatherer with larger assets - about 400,000 barrels a day of oil gathering in the DJ Basin and a 20% interest in the Saddlehorn pipeline - and has guided to 2027 adjusted EBITDA of $850-950 million. Fewer Chevron rigs means lower volume growth through those pipes.
Reported by Offshore Technology — “Chevron to sell Hess Midstream stake and DJ Basin assets” ↗ on 07 Oct 2026.
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