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
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 similar
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 November.
Chevron will report a fourth-quarter decline in profit amid a
slump in oil and natural gas production, according 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 2017.
The companys shares have dropped about 4% this year,
giving it a market value of over $230 billion.