Wells downgrades Hess Midstream on Chevron rig cut

Wells Fargo downgraded Hess Midstream LP (HESM) to Equal Weight from Overweight with a price target of $39, down from $48. Chevron’s (CVX) decision to move to three rigs in the Bakken from group significantly reduces Hess Midstream’s EBITDA growth and capital return, the analyst tells investors in a research note. Wells believes a buyout of the company remains possible, but says the standalone Hess Midstream “now looks less compelling.”