Hess Midstream agreed to pay 200 million dollars for Chevron’s partnership interests and Colorado infrastructure, cancelling about 40 per cent of its units. The deal also extends Bakken contracts to 2045 while reducing fees. Completion is expected by year-end, subject to approvals. Shareholders will gain direct board-election rights in 2028 under the planned ownership change.
US oil and gas infrastructure operator Hess Midstream agreed to pay 200 million dollars for Chevron’s partnership interests, general-partner role and gathering assets in Colorado. Chevron will transfer those holdings under a restructuring announced on 6 October. Hess Midstream will cancel 77,827,485 Class B units and 449,000 Class A units, reducing its outstanding units by approximately 40 per cent.[1], [2]
In the Bakken oil-producing region, contract terms will extend from 2033 to 2045. Fees based on service costs will be replaced with fixed fees that rise with inflation. Minimum revenue commitments cover 80 per cent of expected revenue from Chevron’s Bakken operations through 2033. Commitments will be set three years ahead, with increases permitted but reductions barred.[1]
The transaction is expected to be completed by year-end, subject to required approvals and customary conditions. Chevron’s board representatives will resign when the transaction is completed, and unitholders will be able to elect directors directly in 2028. Hess Midstream plans an employee transition lasting two years and a new corporate name. It also plans to hold distributions per unit during 2027 at the level of the fourth quarter of 2026.[1]
