Chevron is divesting its ownership stake in Hess Midstream and DJ Basin crude oil midstream assets in exchange for reduced tariff rates on midstream services in the Bakken through 2045. While the deal results in a $3-4 billion one-time after-tax loss, it will reduce Chevron's Bakken midstream costs by 50% and simplify its balance sheet by removing $3.7 billion in debt. Hess Midstream gains independence and diversification as a multi-basin operator, with the deal being accretive to both companies' shareholders long-term.

Chevron will divest its interests in Hess Midstream and DJ Basin assets for $200 million while securing improved commercial terms. The deal is expected to reduce Bakken unit midstream costs by approximately 50%, extend agreements through 2045, and deconsolidate $3.7 billion in debt. However, Chevron will record a one-time after-tax loss of $3-4 billion at closing. The transaction aims to improve capital efficiency and upstream returns.

Hess Midstream LP (HESM) beat Q2 2026 earnings expectations with 75 cents per share, up 1.4% YoY, despite lower throughput. Higher tariff rates and reduced operating costs offset weaker volumes. Management expects second-half improvement as Chevron wells come online, but Q3 Adjusted EBITDA is projected at $310-320 million as deferred maintenance and capital spending rise. Full-year guidance remains flat versus 2025.

Hess Midstream LP (HESM) is highlighted as an attractive midstream energy investment opportunity, offering a 7.7% dividend yield with quarterly increases over nine years. The company operates oil, gas, and produced water handling assets in North Dakota's Bakken and Three Forks Shale plays. Its corporate structure was restructured in 2019 to simplify tax treatment for investors.

Hess Midstream LP (HESM), a pipeline company processing natural gas from North Dakota's Bakken and Three Forks Shale regions, has quietly maintained a strong dividend yield of 7.8% with consistent quarterly increases over nine years. The company has also engaged in share buybacks and has benefited from geopolitical tensions, with energy sector tailwinds boosting related stocks.

Hess Midstream (HESM) is an overlooked energy stock offering a 7.7% dividend yield with a 37-quarter streak of consecutive dividend increases. The midstream operator benefits from a long-term relationship with Chevron, providing stable cash flows and supporting its 5% annualized dividend growth target through 2028. The company also pursues share buybacks and debt reduction, offering attractive income potential for dividend investors.

Cushing Asset Management completely exited its position in Hess Midstream LP, selling 1,357,200 shares worth approximately $50.29 million in Q1 2026. The exit appears to reflect a strategic shift toward more diversified midstream operators rather than a retreat from the energy sector. Hess Midstream's concentrated asset base focused on the Bakken region and single core customer (Chevron) may have prompted Cushing to reallocate capital to larger pipeline operators with broader multi-basin exposure.

The article recommends three master limited partnership (MLP) pipeline stocks as strong long-term income investments: Energy Transfer (ET), Hess Midstream (HESM), and MPLX. These companies offer high dividend yields (7-8%), stable revenue streams, and consistent distribution growth, benefiting from rising natural gas demand driven by AI data center expansion.

Three energy midstream companies—Delek Logistics Partners, Hess Midstream, and Plains All American Pipeline—offer high dividend yields between 8-9% and have recently increased their distributions. All three have strong cash flow generation, long-term contracts, and strategic investments positioning them for continued dividend growth.

Chevron is set to begin drilling the Korikori-1 exploration well this month in Block 5, located offshore Suriname, with partners Paradise Oil Company and QatarEnergy. The drilling will assess potential hydrocarbon resources in the region.

The article explores five high-yield investments with potential dividend increases before year-end, focusing on midstream MLPs, communication services, and mortgage REITs with yields ranging from 8.5% to 16.6%.

The article highlights three Master Limited Partnerships (MLPs) with high yields above 5% that offer sustainable distributions and strong growth prospects: Hess Midstream Partners, Enterprise Products Partners, and Brookfield Infrastructure Partners.