Chevron Divestment and Fee Cuts Trigger Worst Hess Midstream Drop in Six Years
Hess Midstream shares fell 14% to $33.14 on Wednesday, marking their steepest single-day decline since March 2020. The drop followed Chevron's Tuesday announcement to divest its ownership stake in the pipeline operator and transfer its Denver Julesburg Basin assets to Hess Midstream. While the deal removes a major strategic uncertainty by making Hess Midstream fully independent, it includes significant concessions: Chevron will pay lower fees in the North Dakota Bakken region from 2027 through 2033. Consequently, Hess Midstream narrowed its 2026 adjusted Ebitda guidance to $1.225 billion–$1.25 billion and issued preliminary 2027 guidance of $850 million–$950 million, well below analyst estimates.