Hess Midstream (HESM) Becomes Independent With DJ Basin Assets and New Ownership

• Hess Midstream (NYSE:HESM) is set to become an independent midstream operator as Chevron moves to fully divest its ownership stake.

• The transaction includes Chevron transferring its general partner interest in Hess Midstream to new owners, alongside the equity sale.

• Chevron is also exiting certain DJ Basin midstream assets, which are being shifted into the Hess Midstream platform as part of the deal.

• Chevron's divestment of its Hess Midstream stake and DJ Basin assets is only one piece of the wider Hess Midstream story. Take a look at 4 other big wins we have identified for Hess Midstream.

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Hess Midstream operates US midstream infrastructure that collects, processes, stores, and transports oil and gas for its sponsor, subsidiaries, and third-party customers. As a result, the move toward an independent, multi-basin setup puts even more attention on how reliably those fee-based services can attract and retain users across regions.

We've flagged 2 risks for Hess Midstream. See which could impact your investment.

What Chevron's exit means for the Hess Midstream free cash flow story

Hess Midstream's Narrative has been built around a capital lighter model where fee-based contracts and minimum volume commitments support steady cash generation. Chevron stepping back as owner, while staying on as a key customer, goes straight to whether that cash-focused story still holds together.

"The main factor that needs to occur is that Chevron maintains its planned Bakken production plateau so Hess Midstream can keep system volumes and minimum volume commitments well utilized…"

See how the full story points towards a $37.50 fair value for Hess Midstream .

Chevron's divestment directly tests that dependency. The new Bakken tariff cuts and lower 2026 to 2027 outlook put pressure on the "volume at any price" idea, yet they are paired with longer contracts to 2045, which supports the Narrative catalyst of predictable, fee-backed free cash flow rather than aggressive throughput expansion.

At the same time, acquiring DJ Basin assets and becoming a fully independent, multi-basin operator by 2028 nudges Hess Midstream closer to peers like Enterprise Products Partners and Kinder Morgan, where diversified basins and third-party volumes matter more. That supports the Narrative angle that future cash generation should lean less on one producer and one play, even as analysts still flag leverage and dividend coverage as watchpoints.