Chevron aims to sell US pipeline, storage networks
Chevron is working with Jefferies Group to find buyers for at least four natural gas and crude oil pipeline operations, said two of the sources, who asked not to be named because the process is private. The San Ramon, California-based company began sending out offering materials this week.
By MATTHEW MONKS
Chevron is seeking to sell pipeline and storage operations in
Texas and Louisiana that together may fetch more than $1
billion, people familiar with the matter said.
Chevron is working with Jefferies Group to find buyers for at
least four natural gas
and crude oil pipeline
operations, said two of the people, who asked not to be named
because the process is private. The San Ramon,
California-based company began sending out offering materials
this week, the people said.
Diversified energy companies have been seeking to sell or
spin off transportation and storage operations to cut costs
and focus on exploration
. Chevron sold a
pipeline business in the Northwestern US last year to Tesoro
Logistics, while Royal Dutch Shell and Chesapeake Energy made
Chevron is looking to sell the West Texas LPG Pipeline, a natural gas
pipeline 20% owned by
Atlas Pipeline Partners, one of the people said. Its
also seeking buyers for a gas storage facility in West Texas,
a crude oil terminal close to the Gulf of Mexico, and at
least one of its pipelines in Louisiana, this person said.
Chevron spokesman Kent Robertson declined to comment on the
sale, as did Jefferies spokesman Richard Khaleel. The company
plans to sell some oil and gas assets to focus on exploration
prospects in Iraq,
Canada, and Australia, Chevrons chief financial officer
Pat Yarrington said in a conference call with analysts in
Chevron will report a fourth-quarter decline in profit amid a
slump in oil and natural gas
to a statement on Jan. 9. The company, run by CEO John S.
Watson, plans to spend close to $40 billion on new terminals
and wells under a plan to boost output by 20% by the end of
The companys shares have dropped about 4% this year,
giving it a market value of over $230 billion.