HG Energy Rel Val Snapshot: BP 3Q Trading Statement; DVN Selling Eagle Ford Assets; CVX Divesting HESM Stake; HP Provides Fiscal 4Q Update

This is J.P. Morgan's HG Energy Relative Value Snapshot covering North America investment-grade energy credit. BP expects 3Q26 net debt of $13.5-$14.5bn, down from $22.3bn at 2Q26 and already within its $14-$18bn 2027 target range; combined net debt, hybrids, leases and Gulf of America liabilities should fall ~$9-$10bn q/q. Upstream production is guided at 2,190-2,240 mboe/d, refining throughput at 1,375-1,405 mbrl/d, with stronger realized refining margins contributing $1.9-$2.1bn q/q; BP also expects $3.0-$4.5bn of post-tax impairments tied mainly to transition businesses. DVN agreed to sell its Eagle Ford assets to Crescent Energy for $4.2bn in cash (~90,000 net acres, ~4% of total BOE), using after-tax proceeds to accelerate buybacks and cut debt. CVX will transfer its HESM ownership and GP interests to Hess Midstream, restructure/extend Bakken contracts and add DJ Basin contracts, cutting Bakken midstream costs ~50%, deconsolidating ~$3.7bn of HESM debt, lifting ROCE by 0.5% and r