Chevron to sell Hess Midstream stake and DJ Basin assets for $200 million
Chevron will deconsolidate Hess Midstream, including about $3.7 billion of its debt, and book a one-time after-tax loss of $3 billion to $4 billion at closing
Published · Updated
Chart: CVX, one-minute prices, three sessions
UpdateTuesday, October 6, 2026 at 5:38 PM ET
Chevron said the revised commercial terms on its Bakken midstream operations are expected to cut midstream costs in that unit by about 50% and lift return on capital employed by 0.5%.
Chevron said it will divest its ownership interests and general partner position in Hess Midstream LP, along with its DJ Basin crude oil midstream assets. In return, Chevron gets extended and improved commercial terms on Bakken midstream operations plus $200 million in cash.
The company expects to fully deconsolidate Hess Midstream, which includes removing about $3.7 billion of its debt from Chevron's balance sheet. Chevron will recognize a one-time after-tax loss of about $3 billion to $4 billion at closing, which it will treat as a special item. The deal is subject to regulatory approvals and other customary closing conditions, and Chevron expects it to close by the end of 2026.
The move amounts to a simplification of Chevron's portfolio rather than a market-moving event. Chevron is trading its Hess Midstream stake and DJ Basin assets for better Bakken terms and $200 million in cash, while shedding roughly $3.7 billion in consolidated debt. Flagging the $3 billion to $4 billion loss as a special item upfront should let investors set it aside when comparing underlying earnings. The transaction reads as balance-sheet and midstream-contract housekeeping tied to the Hess integration, not a shift in Chevron's production or earnings outlook.