Chevron To Divest Its Ownership Interests In Hess Midstream And DJ Basin Crude Midstream Assets; Revised Agreements Expected To Reduce Bakken Unit Midstream Costs By About 50%; To Transfer Hess Midstream Interests And DJ Basin Assets For $200M Cash

Chevron Corporation has entered into agreements to divest its ownership interests in Hess Midstream and DJ Basin crude midstream assets for $200 million in cash. The revised contracts are expected to reduce Chevron's Bakken unit midstream costs by approximately 50%, enhancing future earnings and return on capital employed. The transaction will lead to the deconsolidation of approximately $3.7 billion of Hess Midstream's debt and is anticipated to result in a one-time after-tax loss of $3 to $4 billion at closing.