Hess Midstream to Buy Chevron DJ Basin Assets for $200 Million
The cash asset purchase is expected to make Hess Midstream an independent, multi-basin midstream operator with Bakken and DJ Basin positions and contracts through 2045.
Hess Midstream LP (HESM) agreed to buy Chevron’s crude oil and natural gas gathering and storage assets in the Denver Julesburg Basin for $200 million in cash, an asset-purchase deal expected to close by year-end 2026.
The transaction is expected to establish Hess Midstream as an independent, multi-basin midstream company with leading positions in the Bakken and DJ Basins and contracts in place through 2045.
“Hess Midstream will be strongly positioned to deliver growth and returns as an independent, multi-basin midstream company with leading positions in the Bakken and DJ Basins and contracts in place through 2045,” said Jonathan Stein, Chief Executive Officer of Hess Midstream.
Several of Chevron’s subsidiaries entered into definitive agreements with Hess Midstream to restructure Bakken midstream contracts and establish new DJ Basin midstream contracts. The revised Bakken agreements are expected to reduce Chevron’s unit midstream costs by approximately 50%. In exchange for the improved long-term commercial framework and the $200 million cash consideration, Chevron will transfer to Hess Midstream its ownership interests and general partner position in Hess Midstream, as well as its DJ Basin crude oil midstream assets.
Chevron expects to fully deconsolidate Hess Midstream, including approximately $3.7 billion of Hess Midstream’s debt. The transaction is expected to be accretive to return on capital employed by 0.5% on an absolute basis. At closing, Chevron expects to recognize a one-time after-tax loss estimated at approximately $3 to $4 billion because it is unable to recognize future Bakken midstream cost savings as an asset.
“This transaction resets the commercial framework between our upstream and midstream assets in the Bakken and DJ Basins,” said Andy Walz, Chevron’s President of Downstream, Midstream and Chemicals. “It lowers our Bakken cost structure while positioning Hess Midstream to advance as an independent company.” Chevron expects to sustain Bakken production through ongoing technology deployment and operational improvements drawn from its global shale and tight portfolio.
The split follows Chevron’s July 2025 completion of its acquisition of Hess Corporation, after which Chevron beneficially owned Hess’ approximately 37.8% interest in Hess Midstream on a consolidated basis and installed Chevron leadership on the Hess Midstream board, with Stein succeeding John B. Hess as chief executive.
Hess Midstream has continued to return capital while still under Chevron’s ownership. In March 2026, it announced an accretive $60 million repurchase from the sponsor and the public and said it continued to expect approximately $1 billion of financial flexibility through 2028 for incremental shareholder returns and debt repayment.