Hess (HES) Stock News

Hess Midstream stock plunged 14% after Chevron deal reduces fees and 2027 EBITDA guidance to $850M-$950M, well below estimates. Analysts say the deal is workable despite lower earnings, removing strategic uncertainty and extending contracts to 2045.

Hess Midstream shares fell over 16% after the company agreed to acquire Chevron's Colorado crude oil and natural gas gathering assets and buy out Chevron's controlling stake for $200 million in cash. The deal transforms Hess Midstream into an independent multi-basin operator, includes tariff cuts and extended agreements through 2045, and cancels roughly 40% of outstanding shares. Preliminary 2027 guidance points to adjusted EBITDA of $850 million to $950 million and adjusted free cash flow of $525 million to $625 million.

HESM will acquire Chevron's DJ Basin gathering/storage assets and Chevron will contribute its HESM ownership (nearly 40% share cancellation). Amended Bakken agreements extend to 2045 with reduced tariffs. HESM provides 2027 EBITDA guidance $850M-$950M. Deal closes by year-end 2026.