Chevron Corp. (CVX) wants to sell pipeline and storage operations in Texas and Louisiana worth a total of at least a $1 billion, Bloomberg said, citing “people familiar with the matter.”
Jefferies Group LLC is helping Chevron find buyers “for at least four natural gas and crude oil pipeline operations” and is sending offering materials out.
West Texas LPG Pipeline LP, a natural gas pipeline 20 percent owned by Atlas Pipeline Partners LP, is among the assets for sale, the report said.
“It’s 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,” Bloomberg said.
Chevron hasn’t commented on the story.
“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 Chairman and Chief Executive John S. Watson, plans to spend close to $40 billion on new terminals and wells under a plan to boost output by 20 percent by the end of 2017,” according to Bloomberg.
“The company’s shares have dropped about 4 percent this year, giving it a market value of over $230 billion,” the report said.