Chevron to divest Hess Midstream stake and DJ Basin midstream assets; expects $3-4B after-tax loss

CHEVRON CORP

Chevron subsidiaries to divest ownership interests and GP position in Hess Midstream LP (HESM) plus DJ Basin crude oil midstream assets to Hess Midstream.
In exchange, Chevron receives $200 million cash and extended Bakken midstream contracts, expected to cut Bakken unit midstream costs ~50%.
Chevron expects to deconsolidate ~$3.7 billion of Hess Midstream debt and record a one-time after-tax loss estimated at $3-4 billion as a special item.
Transaction expected to be accretive to return on capital employed by 0.5% absolute; expected to close by year-end 2026 subject to regulatory approvals.
Andy Walz, President of Downstream, Midstream and Chemicals, says deal resets commercial framework and positions Hess Midstream as independent.

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