Hess Midstream (HESM) has fallen about 20% over the past month after Chevron said it would sell its stake in the company. The drop followed an agreement to accept lower fees from Chevron in the Bakken Shale from 2027 through 2033, which led to lower 2026 EBITDA guidance and a tepid 2027 outlook. The article argues the decline may be too far, too fast, noting that integrated oil companies often divest midstream assets and that Chevron extended its use of Hess Midstream infrastructure to 2045. The transfer of Denver-Julesburg Basin energy storage assets also broadens the company's footprint. With shares yielding 10% and Chevron's stake transfer set to cut the share count by 40%, the author sees long-term positives and a possible near-term dividend increase.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related news
- Chevron Is Pouring Billions Into Venezuela. Here's the 1 Number Investors Should Watch.
Chevron plans to invest more than $7 billion in Venezuela over the next five years, after securing improved commercial and legal terms for its joint ventures and additional acreage in the Orinoco Belt. The article says the key figure to watch is the production target of 600,000 barrels per day, more than double 2026 output, as its three joint ventures produced about 280,000 barrels per day in the second quarter of 2026, up 15% from the prior six months. The roughly 320,000 barrels per day of added output could represent about $8.2 billion in annual gross oil sales at an illustrative $70 per barrel, before operating costs, government payments and ownership stakes. Chevron expects production costs to stay below $20 per barrel, but political, regulatory and infrastructure risks remain significant. The target equals roughly 8% of Chevron's more than 4 million barrels of oil equivalent per day, although its actual share would be smaller because it does not fully own the joint ventures.
- Chevron Is Taking a $3 Billion to $4 Billion Loss on Hess Midstream. Should You Buy the Stock Anyway?
Chevron’s agreement with Hess Midstream will require a write-off of up to $4 billion, covering its ownership interest in Hess Midstream, including the general partner interest, and some of its own midstream assets. The article argues the charge is small relative to Chevron’s market cap of around $440 billion and its debt-to-equity ratio of roughly 0.2x, which is second-lowest among peers after ExxonMobil at about 0.16x. Management believes the deal could cut Chevron’s midstream costs in the Bakken region by as much as 50%. Chevron has 38 consecutive annual dividend increases and a 3.1% yield, above the energy industry average of 2.4%. The author views Chevron as suited to long-term dividend investors and treats the charge as an upfront cost for lower costs in future years.
- Better Oil Stock: Chevron (CVX) vs. ExxonMobil (XOM)
The article compares integrated oil majors Chevron (CVX) and ExxonMobil (XOM), whose stocks rose 45% and 58% respectively over the past 12 months as oil prices climbed. Chevron earns about 80% of its profit from upstream operations versus about 70% for ExxonMobil, which has a larger downstream and petrochemicals business. With Brent crude at $110 per barrel, well above breakeven prices of $50 for Chevron and $35 for ExxonMobil, the author argues Chevron's upstream focus suits oil spikes, while ExxonMobil's diversification helps when prices fall. Chevron offers a 3.2% forward yield versus 2.3%, and analysts expect its EPS to grow at a 26% CAGR from 2025 to 2028, compared with 20% for ExxonMobil. Both trade at 15 times next year's earnings, and the author prefers Chevron.
- These 3 Oil Giants Make Money Beyond the Wellhead. That's Good News for Dividends
Oil prices fell 14% last year, yet integrated majors TotalEnergies (TTE), Chevron (CVX) and Exxon Mobil (XOM) kept raising dividends, helped by refining, chemicals and other businesses beyond the wellhead. Chevron yields 2.98% on a $1.78 quarterly dividend, its 39th straight annual increase, and generated $18.10 billion of free cash flow in Q2 2026 with low debt. However, its $7.12 annualized dividend exceeds 2025 EPS of $6.63, which the article flags as a risk if oil stays weak. Exxon Mobil yields 2.41% with 43 consecutive years of dividend growth and a debt-to-equity ratio of 0.168, the lowest of the three. The article also notes that quarterly results can swing sharply, including a $3.88 billion derivative-timing hit in Q1 2026 that left net income at $4.18 billion.
- Chevron’s Big Rally Couldn’t Erase a Decade of Underperformance
Chevron's stock rallied strongly over the past year, but $1,000 invested ten years ago with all dividends reinvested is now worth $3,276, still below the $3,647 the S&P 500 would reach on price alone (excluding dividends). Over five years, Chevron returned 146.21% versus 78.59% for the S&P 500, helped by a window starting just before the 2022 surge. Recent results were driven by closing the Hess acquisition in 2025, record production of 3,723 MBOED (up 12%), Brent averaging $117 per barrel in April as the Strait of Hormuz was effectively shut by military action, and second-quarter revenue up 51.4% to $67.2B. The quarterly dividend rose from $1.07 to $1.78 over the decade. The article argues the income case looks stronger than the price-gain case, though current earnings depend on a Hormuz disruption that will not last forever.
- Got $500? 2 No-Brainer Energy Dividend Stocks to Buy Right Now, Starting With a Huge 6% Yield.
Amid a Middle East conflict that keeps oil and gas demand strong, the article highlights two energy dividend stocks. Enterprise Products Partners (EPD) offers a 6% yield backed by 28 annual distribution increases, and its fee-based midstream model depends more on volume than on commodity prices. The slow-growing MLP has $6.5 billion in capital investments lined up, so the article expects only low- to mid-single-digit distribution growth. Chevron (CVX) yields 3.4% and spans upstream, midstream and downstream operations, which helps soften oil price swings, while its debt-to-equity ratio of about 0.2x and 38-year streak of dividend increases reflect a conservative approach. The article suggests Enterprise for a high current yield, and says investors could wait for an oil market downturn to get a better entry point into Chevron.
Related markets
Latest news
- 3 Superior Growth Stocks to Buy Now and Hold for 10 Years
Gartner expects worldwide AI spending to reach about $2.7 trillion in 2026 and $3.6 trillion in 2027, and the article names CrowdStrike, Snowflake and Dell Technologies as well positioned to benefit. CrowdStrike's stock has doubled this year as net new ARR grew 51% year over year in fiscal Q2 2027, and it trades at about 40 times expected fiscal-year revenue. Snowflake, up about 46% this year, saw product revenue growth reach 37% last quarter and raised its full-year product revenue growth outlook to 36% from 31%, at about 18 times expected product revenue. Dell, up about 285% this year, reported AI server revenue doubling and a record $95 billion AI backlog, trading at about 18 times expected earnings.
- Experts point to sector groups that could draw cash flow in Q4
Mr. Bùi Văn Huy, General Director of FIDT, says the recent rebound in the VN-Index has been driven largely by Vingroup-related stocks, with VIC and VHM alone adding over 21 points to the index on the 22/10 session. Cash flow remains weak, liquidity has not surged, foreign investors are net sellers and interest rates are still high, so the index's gains do not yet mean overall market health has fully recovered. For Q4, he suggests buying on market corrections rather than rushing, deploying capital gradually, limiting margin use, favoring companies with solid finances and avoiding chasing overheated blue chips. Sectors he says investors may watch include infrastructure, public investment, energy and green transition, and companies benefiting from preferential loans, while technology and digital transformation still face pressure from the global AI wave. He also stresses monitoring inflation, exchange rates and Fed policy, and reducing stock exposure if inflation gets out of control or interest rates turn upward.
- SSI Research Director projects a scenario of USD 10 billion flowing into Vietnam's stock market
Phạm Lưu Hưng, Director of Analysis at SSI Research, says MSCI values real implementation over new policies, so Vietnam should remove bottlenecks rather than wait for funds leaving Indonesia. Progress has emerged on free-float and foreign ownership, while the central counterparty (CCP) mechanism could be rolled out in Q1/2027 or by Q2/2027 at the latest. In the base case, Vietnam could be placed under review in 2028 and formally upgraded in 2029, and an earlier CCP launch could bring the timeline forward by a year. He estimates that total assets under management of MSCI-tracking funds could exceed USD 2,000 billion at the time of upgrade, and that a 0.5% weight would imply potential inflows of about USD 10 billion, possibly staged in tranches running until around 2030 in the base case.
- I Said Palantir Stock Would Top $220 This Year. Here's What It Has to Prove on Nov. 2.
The author maintains his prediction that Palantir will reach $220 per share before the end of 2026, though shares traded at $190 to $198 on Friday. Palantir reports third-quarter earnings on Nov. 2, and he says it needs three things: quarterly revenue above $2.3 billion (management guided to about $2.16 billion, roughly 12% sequential growth versus about 19% in Q2), evidence that its AI sovereignty efforts are producing meaningful business, and an adjusted operating margin above Q2's 62%. Q2 revenue rose 93% year over year to $1.94 billion. He notes the stock is not cheap and says reaching $220 this year will require more than another good earnings report.
- Margin lending relative to market capitalization hits a new record: what is happening?
Total lending at securities firms, including margin loans and advances on sales, is estimated at about VND 455,000 billion at the end of Q3/2026, up VND 10,000 billion from the previous quarter, equal to roughly 5.1% of the market capitalization of the two exchanges and the highest level in history. Meanwhile, HoSE's matched trading value averaged only over VND 13,403 billion per session in September, down more than 60% year on year, and the VN-Index fell nearly 4.7% in Q3. Bùi Văn Huy, General Director of FIDT, says most margin balances are likely in bespoke “deal” loans where shares serve as collateral, though public data cannot precisely determine the share. Balances are concentrated among 18 securities firms with lending above VND 10,000 billion, about two-thirds of which have bank backing. The article also notes that margin balances have grown roughly in line with foreign investors' cumulative net selling of about VND 350,000 billion over roughly the past five years.
- 30 years of Vietnam's stock market: from 2 stocks to 10 million billion VND in market capitalization, a new chapter opens
Vietnam's stock market opened on 28 July 2000 with just two stocks, REE and SAM, after a difficult effort to persuade companies to list. Thirty years later, market capitalization of shares is about 10 million billion VND, equal to nearly 80% of GDP in 2025, and investor accounts have grown from 3,000 in 2000 to over 14 million. The market now has more than 1,600 listed securities, while the corporate bond market is about 1.4 million billion VND, or 11% of GDP. The carbon credit market was officially launched on 29 June 2026. The article frames the next phase as a challenge of improving market quality, not just expanding size.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.