Bullish
Chevron to divest Hess Midstream and DJ Basin assets, aiming for 50% cost reduction
Chevron announced plans to divest its ownership interests in Hess Midstream and DJ Basin crude oil midstream assets. This strategic move is expected to reduce Bakken unit midstream costs by approximately 50%, enhancing future earnings and return on capital employed. The transaction is anticipated to close by year-end 2026.
Key points
- Chevron's divestiture aims to streamline operations and improve cost efficiency.
- The company expects a one-time after-tax loss of approximately $3 to $4 billion at closing.
- The transaction is subject to customary closing conditions and regulatory approvals.
Sources
AI-generated from public news sources. Not financial advice.
