Hess Midstream buys DJ assets: USD 525 million guides Hess Midstream stock

Published on 10/16/2026 at 00:18 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Hess Midstream guides 2026 adjusted EBITDA at USD 1,225-1,250 million. The transaction sets 2027 leverage at 3.75x-4.0x for Hess Midstream stock.

Transaction reshapes future cash flow

Hess Midstream announced the Chevron agreement on October 6, 2026, including USD 200 million in cash.
Preliminary 2027 adjusted free cash flow is guided at USD 525 million to USD 625 million.
Hess Midstream had a USD 6.3 billion market capitalization as of October 15, 2026.

HESM, US4281031058, Illustration mit AI erstellt.

Hess Midstream LP (ISIN US4281031058) agreed with Chevron on October 6, 2026, to acquire DJ Basin midstream assets and become an independent multi-basin company. The transaction includes USD 200 million in cash, while Hess Midstream expects 2027 adjusted free cash flow of USD 525 million to USD 625 million, according to the company's Hess Midstream.

Deal adds capacity and cuts dependence

The agreement gives Hess Midstream crude oil and natural gas gathering and storage assets in Colorado's DJ Basin, including 400 thousand barrels per day of oil gathering capacity, 300 million cubic feet per day of gas gathering capacity and 420 thousand barrels of storage capacity. It also adds a 20 percent interest in the Saddlehorn pipeline and agreements supported by approximately 670 thousand dedicated acres, according to the October 6, 2026 release.

Chevron will contribute its consolidated Hess Midstream interests, which the company expects to cancel at closing. That action is expected to reduce Hess Midstream's outstanding shares by nearly 40 percent and create a new independent board, while the amended Bakken agreements extend through 2045.

What does the guidance mean?

Hess Midstream updated its 2026 outlook to adjusted EBITDA of USD 1,225 million to USD 1,250 million and adjusted free cash flow of USD 910 million to USD 935 million. The company also expects 2027 leverage of 3.75x to 4.0x adjusted EBITDA, with long-term leverage targeted at 3.5x to 3.75x.

Three dated milestones for HESM

On July 27, 2026, Hess Midstream announced a quarterly distribution of USD 0.7888 per Class A share. On August 3, 2026, second-quarter revenue reached USD 399.0 million, while net income was USD 173.7 million and basic earnings per share were USD 0.75, according to the company's investor release. On October 6, 2026, the company announced the Chevron transaction and its new 2027 cash flow guidance.

Next company date

Hess Midstream scheduled an investor webcast for October 7, 2026, at 11:00 a.m. EDT to discuss the transaction. The proposed deal is expected to close by year-end 2026, subject to customary closing conditions.

NYSE valuation and operating profile

HESM was last at USD 30.62 on the NYSE on October 15, 2026, at 4:00 p.m. EDT. Its market capitalization was USD 6.3 billion as of October 15, 2026. The fee-based midstream company operates mainly in the Bakken and Three Forks shale plays and is expanding into the DJ Basin.