Bullish
Chevron to divest Hess Midstream and DJ Basin assets, reducing Bakken costs by 50%
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 lower Bakken midstream costs by 50%, improving earnings.
- The company expects a one-time after-tax loss of $3–$4 billion at closing.
- Transaction is subject to customary closing conditions and regulatory approvals.
Sources
AI-generated from public news sources. Not financial advice.
