Hess Midstream Plunges 16% on $200M Chevron Restructuring Deal
CVX sits 40% above its 52-week low of $146.49 on light trading volume (0.2× avg).
Summary
Hess Midstream shares tumbled over 16% to $32.47 after agreeing to acquire Chevron's Colorado midstream assets and buy out its controlling stake. The deal includes a $200 million cash payment to Chevron, tariff reductions, and extended agreements through 2045. Hess Midstream will cancel roughly 40% of its outstanding shares and become an independent multi-basin operator. Preliminary 2027 guidance calls for adjusted EBITDA of $850M-$950M and adjusted free cash flow of $525M-$625M, with $125M in capex. Bakken throughput is expected to decline 5% in 2027 due to reduced Chevron activity. This follows Chevron's 8-K filed October 6 announcing the divestiture of its Hess Midstream ownership and DJ Basin assets.
At the time of this announcement, CVX was trading at $205.23 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $405.5B. The 52-week trading range was $146.49 to $217.78. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.