[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

4 clusters · 11 sources · 21 days · First seen · Last updated

Chevron and Hess Midstream asset restructuring

Overview

Chevron Corporation has entered into definitive agreements with Hess Midstream LP to restructure Bakken midstream contracts and transfer ownership of its DJ Basin crude oil midstream assets to Hess Midstream. In exchange for these assets and its ownership interests, Chevron will receive $200 million in cash.

Chevron expects the move to reduce its Bakken unit midstream costs by roughly 50% and fully deconsolidate Hess Midstream, which carries approximately $3.7 billion in debt. While the company anticipates the deal will be accretive to return on capital employed, it expects a one-time after-tax loss between $3 billion and $4 billion because it cannot recognize future cost savings as an asset.

Following the announcement, Hess Midstream shares initially fell approximately 15%. By late October, the company’s stock had experienced a total decline of approximately 20% over the month. This downturn was driven by market reactions to the agreement for Hess Midstream to accept lower fees from Chevron in the Bakken Shale region between 2027 and 2033, which led to a reduction in 2026 EBITDA guidance and a cautious outlook for 2027.

On October 26, 2026, Raymond James upgraded Hess Midstream with a $32 price target, suggesting that recent market losses were “excessive.” The upgrade noted that while lower Bakken fees reduce adjusted EBITDA forecasts, the deal extends the commitment to utilize Hess Midstream’s infrastructure through 2045, providing long-term volume stability. Following the upgrade, Hess Midstream shares rose by 1.9%.

Entities

DJ Basin · Chevron Corporation · Hess Midstream · Chevron · Bakken

Timeline

  1. [BUSINESS] 2 sources
    Raymond James upgrades Hess Midstream with $32 price target

    Raymond James upgraded Hess Midstream to a $32 price target, citing an overreaction to new, lower-fee contracts with Chevron that extend infrastructure usage through 2045.

  2. [BUSINESS] 2 sources
    Hess Midstream faces stock decline following Chevron divestment

    Hess Midstream shares fell 20% recently after Chevron announced plans to divest its stake and the company agreed to lower Bakken Shale fees.

  3. [BUSINESS] 4 sources
    Hess Midstream shares fall following Chevron asset acquisition deal

    Hess Midstream Partners shares dropped 15% following an agreement to acquire DJ Basin assets from Chevron in a $200 million cash deal, aiming to become a multi-basin midstream company by late 2026.

  4. [BUSINESS] 4 sources
    Chevron to divest Hess Midstream and DJ Basin assets

    Chevron is divesting its ownership in Hess Midstream and DJ Basin assets to restructure Bakken contracts and reduce midstream costs by roughly 50%.

Sources

ad-hoc-news.de · businessnewsthisweek.com · cyprusshippingnews.com · finanzen.at · finchannel.com · it-boltwise.de · newindianexpress.com · offshoresource.com · stocknews.com · theascent.com · worldstagenews.com

This summary has been updated 2 times: see revision history