Hess Midstream to Acquire Chevron's DJ Basin Assets for $200M, Cut Share Count ~40%
HESM is trading near its 52-week low of $31.63 (8.5% above the low) on elevated volume (3.6× avg).
Summary
Hess Midstream signed a definitive agreement to acquire Chevron's DJ Basin assets for $200M and cancel ~40% of its outstanding shares, transitioning to independent, shareholder-elected governance.
Key Events · M&A and Partnerships · HESM
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DJ Basin Acquisition
Hess Midstream will acquire Chevron's DJ Basin crude oil and gas gathering, processing, and storage assets for $200 million in cash plus closing working capital. Assets include ~400,000 bpd oil gathering, 300 MMcf/d gas gathering, 420,000 barrels of storage, and a 20% interest in the Saddlehorn pipeline.
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~40% Share Count Reduction
Chevron will contribute its entire consolidated ownership stake, and Hess Midstream will cancel 449,000 Class A shares and 77,827,485 Class B units/shares. Outstanding shares are expected to decrease by nearly 40% upon closing.
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Bakken Commercial Agreements
Chevron receives reduced tariff rates on Bakken gathering, processing, and terminaling services, with an 80% minimum revenue commitment through December 31, 2033, and annual CPI-U escalators capped at 3%.
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Governance Transformation
Chevron's board appointment rights are eliminated. Shareholders will elect all board members beginning with the 2028 annual meeting, with a classified board structure. Four Chevron-affiliated directors are expected to resign at closing.
Analysis · HESM · Energy & Transportation
Hess Midstream signed a definitive agreement to acquire Chevron's DJ Basin gathering, processing, and storage assets for $200 million in cash plus working capital. The deal also restructures the company's ownership: Chevron contributes its entire consolidated stake, and Hess Midstream cancels 449,000 Class A shares and 77.8 million Class B units/shares, reducing the outstanding share count by nearly 40%. In exchange, Chevron receives reduced tariff rates on Bakken commercial agreements and an 80% minimum revenue commitment through 2033. The transaction transforms Hess Midstream from a Chevron-controlled entity into an independent, shareholder-governed company with a classified board elected by shareholders beginning in 2028. Closing is expected by year-end 2026, subject to HSR clearance and other conditions.
How filings like this one have moved
In the 30 days to Oct 8, 2026, 43% of the 323 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.62%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, HESM was trading at $34.31 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $7B. The 52-week trading range was $31.63 to $41.44. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.