Hess Midstream Plummets 16% Following $200 Million Chevron Deal

Under the agreement, Hess Midstream will seize full control of its general partner and cancel approximately 40% of its outstanding shares. By trading $200 million in cash and reduced tariffs for these assets, the firm aims to transition into an independent, multi-basin operator. The expansion into the DJ Basin is expected to bolster total gathering volumes for oil, gas, and water, though the company projects a 5% decline in Bakken throughput by 2027 due to scaled-back activity from Chevron.

Looking toward the post-transaction horizon, the company issued preliminary 2027 guidance targeting adjusted EBITDA between $850 million and $950 million, alongside free cash flow ranging from $525 million to $625 million. To support these operations, management plans to allocate $125 million in capital expenditures across its various basins.