Chevron to exit Hess Midstream in Bakken restructuring

Chevron has agreed to divest its ownership interests in Hess Midstream, its general partner position, and its crude oil midstream assets in the DJ Basin. In return, the company will receive $200 million in cash alongside improved and extended commercial terms for its operations in the Bakken.

The transaction is expected to cut Chevron's unit midstream costs in the Bakken by roughly 50%. Chevron also expects the agreements to boost its return on capital employed by around 0.5 percentage points and allow it to deconsolidate approximately $3.7 billion of Hess Midstream debt from its balance sheet.

Upon closing, Chevron expects to recognize a one-time after-tax accounting loss of approximately $3 billion to $4 billion. Accounting rules prevent the company from capitalizing the value of anticipated future Bakken cost savings as an asset.

The move follows Chevron's acquisition of Hess Corporation in July 2025. Earlier this year, Chevron reported that combined production from the Bakken and DJ Basin reached roughly 600,000 barrels of oil equivalent per day. Subject to regulatory approvals and customary closing conditions, the restructuring is slated to close by the end of 2026, allowing Hess Midstream to operate as an independent company.