Chevron Sells Hess Midstream Stake in Bakken Restructuring

Chevron has reached an agreement to sell its stake in Hess Midstream and its crude oil midstream assets in the DJ Basin as part of a major restructuring in the Bakken region. The deal includes the transfer of Chevron's ownership interests and general partner position in Hess Midstream, along with its DJ Basin assets. In exchange, Chevron will receive $200 million in cash and improved commercial terms for its Bakken operations.

The transaction is expected to cut Chevron's midstream costs in the Bakken by about 50%, boosting earnings and returns from the shale basin. The company anticipates a 0.5 percentage point increase in return on capital employed and plans to deconsolidate approximately $3.7 billion of Hess Midstream debt from its balance sheet.

However, Chevron will face a one-time after-tax loss of $3 billion to $4 billion when the deal closes, due to accounting rules that prevent recognizing the value of future cost savings as an asset. The restructuring follows Chevron's acquisition of Hess Corporation in July 2025, which expanded its upstream portfolio significantly.

Chevron aims to maintain Bakken production through technological and operational improvements, while the restructuring will allow Hess Midstream to operate independently. The transaction is subject to regulatory approvals and customary closing conditions, with an expected closure by the end of 2026.