Hess Midstream to Acquire Chevron DJ Basin Assets for $200 Million
Hess Midstream LP Class A (NYSE:HESM) has agreed to acquire Chevron's DJ Basin midstream assets for $200 million. As part of the arrangement, the business will take on modified long-term Bakken and DJ agreements featuring reduced tariffs and fixed fees.
The deal also involves canceling Chevron-held shares, which will decrease Hess Midstream's outstanding equity by about 40%. Additionally, the firm will reorganize into a Houston-based independent multi-basin midstream company with a new corporate name, under the leadership of Chief Executive Officer Jonathan C. Stein.
Market participants will monitor the progress toward closing the acquisition, which is projected to complete by the end of 2026. Shares of Hess Midstream dropped 5.12% to $32.26 in recent trading following the announcement.
Key points
- Hess Midstream LP Class A (NYSE:HESM) will buy Chevron’s DJ Basin assets for $200 million.
- Chevron-held shares will be canceled to reduce total outstanding stock by approximately 40%.
- The agreement incorporates amended Bakken and DJ contracts with lower tariffs and fixed fees.
- A new independent multi-basin midstream firm will form in Houston under a new corporate name.
- The deal may close by year-end 2026, and Hess Midstream stock declined 5.12% to $32.26.
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How we writeDisclaimerQuestions and answers
How much is Hess Midstream paying for Chevron's DJ Basin assets?
Hess Midstream LP Class A is acquiring Chevron's DJ Basin midstream assets for $200 million.
How will the Chevron transaction affect Hess Midstream's share count?
The cancellation of Chevron-held shares will reduce Hess Midstream's outstanding stock by about 40%.
When will the Hess Midstream acquisition close?
The deal is anticipated to close by the end of 2026.