Chevron said on Tuesday it had agreed to sell its stakes in Hess Midstream 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)