Chevron Corp.’s mega deal to acquire Hess Corp. has thrown into question the future of Hess Midstream Partners.
The terms of the deal so far do not specify whether Chevron will purchase Hess Midstream LP, which transports crude, gas and water in and around North Dakota. Chevron has said it would target divestments of about $10-$15 billion, but hasn’t said what could be included.
“As the deal is still pending, we really haven’t reached a view on that yet, though our intent is to create value for all shareholders,” a Chevron spokesperson said.
For now, Hess Midstream’s contracts remain intact through 2033, according to Citigroup Inc. analyst Douglas Irwin, who expects 2024 guidance and 2026 minimum volume commitments to incorporate a four-rig program on Hess’s acreage.
But selling the company would bring Chevron close to its asset sale target, with Monday’s close implying more than $2.5 billion in proceeds, Irwin said in a note.
