How likely is it that a Bakken assets sale agreement is already under way?

With the surprisingly prompt sale of the Malaysia-Thailand JDA, what are the odds that Chevron already has a deal in the works to unload the Bakken assets (production and midstream)?

Logically this would be an efficient way to quickly cut ~1,000 headcount and liquidate non-core assets.

It would also make many of the “transition” roles unnecessary depending on who Chevron offloads the ND assets to.

It also might help explain the gag order on Chevron employees communicating with Hess employees - lest news of this impending sale slipped out in casual conversation….

Just speculating. Curious if anyone on Chevron’s side might chime in.

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@1ny Hess Family office, maybe. Hess Corp staff gone.

NMB = Northern Midland Basin?

What is happening to the New York Office? Any news?

I would think NMB gets sold before the Bakken is considered as a sale target. Whether the Bakken gets sold or not would depend on what CVX is considering as the main objective for the Bakken.

If the Bakken needs to be a revenue generating machine for CVX, then the asset does not meet that objective as all of Hess US domestic production has negative profits in every quarterly and annual report. In the medium to long term view, CVX operating costs in the Bakken will NOT be any lower than Hess operating costs, so it's unlikely the profitability picture will improve going forward.

If the Bakken needs to be a reserves replacement tool for CVX, then the asset fully meets that objective as a complimentary reserve add lever in addition to Guyana. Both of these assets take Chevron's 89% reserve replacement ratio and bring it to well over 100% in 2025 and beyond.

Ultimately, I don't think Chevron will try to sell the Bakken, but it does look like they want to operated with a skeleton crew going forward -- based on the headcount reductions there so far....

The business structure with HESM makes a quick transaction much less likely in my opinion. It may be sold eventually.

Who buys Bakken? look at EOG, or even CLR.. perhaps PE?

Thread regarding Hess Corp. layoffs

How likely is it that a Bakken assets sale agreement is already under way?

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