Published • loading... • Updated
Chevron Agrees to Exit Hess Midstream in Bakken Contract Overhaul - FINCHANNEL
Chevron will cut Bakken gathering and processing costs by about 50% and expects a $3 billion to $4 billion after-tax loss.
- Chevron is divesting its ownership interests in Hess Midstream and Basin crude oil midstream assets to simplify its portfolio and balance sheet while securing improved long-term commercial terms.
- The oil giant will contribute all existing interests in Hess, including over 77.8 million Class units and 100% of its general partner interest, while receiving $200 million in cash as part of the agreement.
- Hess will cancel those Class units, reducing outstanding shares by nearly 40%, while receiving a 20% interest in the Saddlehorn pipeline. Chevron expects to fully deconsolidate Hess Midstream, removing approximately $3.7 billion of debt.
- The revised contracts will reduce Chevron's Bakken unit midstream costs by about 50%, though the deal triggers an upfront $3 billion-$4 billion after-tax loss that is 0.5% accretive to future earnings.
- Chevron expects to run a two-rig Drilling program from 2027 through 2029, supported by the reduced Bakken tariffs. The deal simplifies operations, enhancing shareholder value for both companies over the long term.
Insights by Ground AI
11 Articles
11 Articles
Chevron is divesting its stakes in Hess Midstream and in infrastructure assets for transport and storage of oil in the Denver-Julesburg basin, in exchange for more favourable commercial conditions for its infrastructure operations in the Bakken oil field in North America. Exclusive material for subscribers. To have full access, access the link of the material and register.
·Rio de Janeiro, Brazil
Read Full Article
Chevron to divest stakes in Hess Midstream, DJ Basin crude midstream assets (CVX:NYSE)
Chevron to sell interests in Hess Midstream and its DJ Basin midstream assets as part of a broader restructuring of its Bakken agreements and establishing new DJ Basin midstream contracts.
·Ra'anana, Israel
Read Full Article
Coverage Details
Total News Sources11
Leaning Left1Leaning Right2Center2Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
Factuality
To view factuality data please Upgrade to Premium
