$CVX (CHEVRON) — 8-K: Chevron to Divest Hess Midstream and DJ Basin Assets, Cutting Bakken Midstream Costs About 50%

Chevron subsidiaries entered definitive agreements with Hess Midstream LP to restructure Bakken midstream contracts and establish new DJ Basin midstream contracts. Chevron will transfer its ownership interests and general partner position in Hess Midstream plus its DJ Basin crude oil midstream assets in exchange for improved long-term commercial terms and $200 million in cash. The revised agreements are expected to reduce Chevron's Bakken unit midstream costs by approximately 50% and be accretive to 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 to recognize a one-time after-tax loss estimated at approximately $3 to $4 billion at closing, expected by year-end 2026.

Chevron subsidiaries entered definitive agreements with Hess Midstream LP to restructure Bakken midstream contracts and establish new DJ Basin midstream contracts. Chevron will transfer its ownership