Chevron to divest midstream assets in Bakken restructuring (updated)

Hess Midstream LP

06/10/2026 22:50

Adds details throughout
Oct 6 (Reuters) - Chevron CVX.N said on Tuesday it had agreed to sell its stakes in Hess Midstream HESM.N and DJ Basin crude oil midstream assets as part of a broader restructuring of its Bakken midstream agreements aimed at cutting costs and boosting returns.
The transaction would remove Hess Midstream from Chevron’s balance sheet, including about $3.7 billion of the unit’s debt. Chevron expects the deal to close by year-end and to record a one-time after-tax loss of about $3 billion to $4 billion.
The revised agreements extend the Bakken contracts and are expected to reduce Chevron's Bakken unit midstream costs by approximately 50% 
Under the agreements, Chevron will also transfer its DJ Basin crude oil midstream assets to Hess Midstream
In exchange, it will get $200 million in cash, longer Bakken contracts on revised terms and new DJ Basin midstream contracts
Hess Midstream LP and Chevron will amend their existing Bakken commercial agreements, further aligning long-term interests by reducing tariffs while extending the terms of the agreements through 2045, Hess said in a statement
Chevron is expected to move from three to two drilling rigs in the Bakken in December 2026, the Hess statement added

 (Reporting by Dharna Bafna in Bengaluru; Editing by Diti Pujara)
 ((Dharna.Bafna@thomsonreuters.com))