Hess Midstream shares fall following Chevron asset acquisition deal

Hess Midstream Partners LP shares fell approximately 15% on Wednesday, opening at $36.05 after a previous close of $38.69. The decline follows the company's announced agreement with Chevron to acquire crude oil and natural gas gathering and storage assets in the DJ Basin.

Under the terms of the transaction, Hess Midstream will pay Chevron $200 million in cash. In exchange, Hess Midstream will acquire assets with an oil gathering capacity of approximately 400,000 barrels per day, gas gathering capacity of 300 million cubic feet per day, and 420,000 barrels of storage capacity. Chevron will also contribute its existing ownership interests in Hess Midstream to the deal.

The company expects the transaction to close by the end of 2026, at which point it aims to become an independent, multi-basin midstream company. For 2026, Hess Midstream projects net income between $650 million and $675 million, with adjusted EBITDA between $1.225 billion and $1.25 billion.