Hess Midstream Stock Falls 15%

(RTTNews) - Hess Midstream LP (HESM) is down 15.46 percent, losing $5.98 to $32.71 on Wednesday. The move is likely driven by the company's previously announced agreement with Chevron to acquire DJ Basin crude oil and natural gas gathering and storage assets, while Chevron contributes its existing ownership interests in Hess Midstream.

Hess Midstream is currently trading at $32.71, down from the previous close of $38.69 after opening at $36.05 on the New York Stock Exchange. The stock has traded between $31.99 and $35.76 during the session, with trading volume at 6.03 million shares versus average volume of 1.22 million.

Under the transaction, Hess Midstream will pay Chevron $200 million in cash and acquire DJ Basin assets with approximately 400,000 barrels per day of oil gathering capacity, 300 million cubic feet per day of gas gathering capacity and 420,000 barrels of storage capacity. The company expects the deal to close by year-end 2026 and become an independent, multi-basin midstream company.

For 2026, Hess Midstream expects net income of $650 million to $675 million and adjusted EBITDA of $1.225 billion to $1.25 billion. For 2027, it expects adjusted EBITDA of $850 million to $950 million and adjusted free cash flow of $525 million to $625 million.

Shares have traded between $31.63 and $41.44 over the past 52 weeks.