Chevron Divests Hess Midstream Assets to Cut Bakken Costs
Chevron agreed to divest its Hess Midstream interests for $200 million to reduce transportation and processing costs in the Bakken shale basin.
Chevron Corp. agreed to divest its ownership interests in Hess Midstream and its crude oil midstream assets in the DJ Basin. The move aims to reduce transportation and processing costs in the Bakken shale basin following Chevron's acquisition of Hess Corporation in July 2025.
Under the definitive agreements, Chevron will transfer its ownership interests and general partner position in exchange for $200 million in cash and extended commercial terms for its Bakken operations. The company expects the restructuring to reduce unit midstream costs in the Bakken by approximately 50% and increase return on capital employed by 0.5 percentage points.
While the transaction allows Chevron to deconsolidate $3.7 billion of debt, accounting rules regarding future cost savings are expected to result in a one-time after-tax loss of $3 billion to $4 billion. The deal is subject to regulatory approvals and is expected to close by the end of 2026, at which point Hess Midstream will operate as an independent company.
