Hess Midstream Buys Chevron's DJ Basin Assets for $200M, Cancels Chevron's HESM Interests
HESM sits 22% above its 52-week low of $31.63.
Summary
Hess Midstream is acquiring Chevron's DJ Basin gathering and storage assets for $200 million in cash plus closing working capital, with closing expected by year-end 2026, adding a second basin and long-term, fee-based revenue tied to acreage dedications. The deal also cancels Chevron's HESM and GP interests, giving Hess Midstream 100% ownership of the GP and simplifying control. Bakken agreements with Chevron are extended to 2045 with fixed fees and MRCs, improving revenue visibility, and the MRC is set at 80% through 2033, supporting a cash flow floor. Near-term, Chevron rigs drop to 2 in December 2026, with Bakken 2027 throughput seen down about 5% before plateauing. Hess Midstream expects 2027 adjusted EBITDA of $850 million to $950 million. The transaction is framed as EBITDA/share accretive despite the cash payment, and closing on time with clear 2027 guidance will be key.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The 8-K details the purchase agreement: $200M cash plus closing working capital, expected close by year-end 2026, and Bakken commercial agreements with 80% MRC through 2033.
At the time of this announcement, HESM was trading at $38.50 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $8B. The 52-week trading range was $31.63 to $41.44. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.