Chevron will transfer its entire ownership interest in Hess Midstream LP (HESM), including its general partner position, to Hess Midstream. The transaction also transfers Chevron’s DJ Basin crude oil midstream assets to Hess Midstream. In exchange, Hess Midstream will pay Chevron $200 million in cash and revise long-term commercial agreements covering Chevron’s Bakken assets.
The revised contracts are expected to reduce Chevron’s Bakken midstream costs by approximately 50%. Chevron will deconsolidate about $3.7 billion of Hess Midstream debt from its balance sheet.
The deal is expected to close by the end of 2026. At closing, Chevron anticipates recording a one-time, after-tax loss of $3 billion to $4 billion. The transaction would position HESM to operate as a fully independent midstream company.