CVX · 8-K · 20261006PR000192

Acquisition / Partnership / Divestiture

CHEVRON CORP · 2026-10-06 · Importance 65 · Surprise 82 · No source text

Chevron announced definitive agreements to transfer its Hess Midstream ownership interests and general partner position, along with its DJ Basin crude oil midstream assets, to Hess Midstream in exchange for $200 million in cash consideration and revised Bakken contracts. The revised agreements are expected to reduce Chevron’s Bakken unit midstream costs by approximately 50% and improve return on capital employed by 0.5% on an absolute basis. Chevron expects to fully deconsolidate Hess Midstream, including approximately $3.7 billion of Hess Midstream debt, and recognize a one-time after-tax loss estimated at approximately $3 billion to $4 billion at closing. The transaction remains subject to customary closing conditions and regulatory approvals and is expected to close by year-end 2026.

Key facts

• At closing, Chevron expects to recognize a one-time after-tax loss estimated at approximately $3 to $4 billion. source
• The revised agreements extend the Bakken contracts and are expected to reduce Chevron's Bakken unit midstream costs by approximately 50%. source
• Chevron expects to fully deconsolidate Hess Midstream, including approximately $3.7 billion of Hess Midstream's debt. source
• Chevron will receive $200 million in cash consideration as part of the transaction. source
• Chevron will divest its ownership interests in Hess Midstream. source
• Chevron will divest its DJ Basin crude oil midstream assets. source
• Chevron will transfer its general partner position in Hess Midstream to Hess Midstream. source
• Chevron expects the transaction to be accretive to return on capital employed by 0.5% on an absolute basis. source

Impact estimates