Hess Midstream LP

HESM: 8-K · acquisition merger

Hess Midstream LP entered a Purchase and Sale Agreement on October 6, 2026 with Chevron subsidiaries under which it will acquire Chevron's DJ Basin crude oil and natural gas gathering, processing and storage assets and 100% of its own general partner entities, paying $200 million in cash plus CMH closing working capital and granting a Commercial Contract Right. The transaction is transformational: Chevron will exit 100% of its consolidated ownership in the company, outstanding shares are expected to decrease by nearly 40% at closing, and Chevron-affiliated directors will resign. The DJ Basin Assets include roughly 400,000 barrels per day of oil gathering capacity and a 20% stake in the Saddlehorn pipeline. The deal closes expected by year-end 2026 subject to HSR clearance, and new Bakken Commercial Agreements with Chevron reduce tariff rates but carry an 80% minimum revenue commitment through 2033 and fixed capacity reservation fees for three years — accretive structure, but lower per-unit rates weigh on the bullish case. CEO Jonathan Stein signed an offer letter effective at closing with total target annual compensation of no less than $6.5 million, and shareholders gain the right to elect all board members beginning in Q2 2028.

SEC 8-K•16d ago

Chevron to Divest its Ownership Interests in Hess Midstream and DJ Basin Crude Midstream Assets

Chevron will divest its ownership interests and general partner position in Hess Midstream plus its DJ Basin crude midstream assets, in exchange for extended Bakken midstream contracts and $200 million in cash. The restructured agreements are expected to cut Chevron's Bakken unit midstream costs by roughly 50% and boost return on capital employed by 0.5% on an absolute basis, while deconsolidating about $3.7 billion of Hess Midstream debt. Offsetting the benefits, Chevron expects a one-time after-tax loss of approximately $3 to $4 billion at closing since future cost savings cannot be booked as an asset. The deal, approved by the Hess Midstream Conflicts Committee, is expected to close by year-end 2026 pending regulatory approvals.

•18d ago

HESM: 10-Q · periodic report

Hess Midstream LP reported Q2 2026 total revenues of $399.0 million, down from $414.2 million a year earlier, with consolidated net income of $173.7 million versus $179.7 million. Net income attributable to the LP rose to $96.4 million, or $0.75 per Class A share, from $90.3 million ($0.74), helped by a lower noncontrolling interest allocation after buybacks, while Q2 Adjusted EBITDA slipped slightly to $313.7 million from $316.0 million. Throughput volumes declined sharply year over year — oil terminaling down 15%, water gathering down 12%, and gas processing down 4% — which management attributed to lower production from reduced new-well activity in the Bakken, plus planned maintenance at the Tioga Gas Plant. Higher tariff rates, third-party services, and MVC shortfall fees partially offset the volume weakness. The partnership declared a cash distribution of $0.7888 per Class A Share on July 27, 2026, an increase of $0.0096 versus Q1 2026, continuing its distribution growth streak. In Q1 2026 it also repurchased $42.0 million of Class A Shares via an ASR and bought $18.0 million of Class B Units directly from Chevron. Chevron now represents 95% of revenues following the Hess-Chevron merger that made it the Sponsor, and management is pursuing third-party Bakken volumes to lift utilization. The balance sheet carries $3,680.0 million of total debt against just $5.0 million of cash, with senior unsecured ratings of BBB- (S&P) and Ba1 (Moody's).

SEC 10-Q•2mo ago