Chevron to Divest Hess Midstream Stake, DJ Basin Assets in $200 Million Bakken Restructuring

Chevron agreed to divest its ownership interests and general partner position in Hess Midstream, along with its DJ Basin crude midstream assets, in a restructuring aimed at cutting Bakken transportation and processing costs. Under definitive agreements with Hess Midstream, Chevron will receive $200 million in cash and improved, extended commercial terms for its Bakken operations. The company expects unit midstream costs in the Bakken to fall by about 50%, lifting return on capital employed by roughly 0.5 percentage points. Chevron will deconsolidate approximately $3.7 billion of Hess Midstream debt from its balance sheet. It expects a one-time after-tax loss of $3 billion to $4 billion at closing, since accounting rules bar recognition of future Bakken cost savings as an asset. The move follows Chevron's July 2025 acquisition of Hess Corporation, which expanded its upstream portfolio. Combined Bakken and DJ Basin production has reached roughly 600,000 barrels of oil equivalent per day. The transaction, subject to regulatory approvals, is expected to close by the end of 2026. Hess Midstream will operate independently.