NEW YORK: Chevron is marketing a collection of pipeline assets in the Denver-Julesburg shale basin, likely to fetch over $2 billion, sources familiar with the matter said. The infrastructure, mostly inherited from Chevron’s 2020 acquisition of Noble Energy and its midstream operations, generates roughly $200 million in annual EBITDA.
Investment bankers at Bank of America are soliciting interest from potential buyers. A sale is not guaranteed and Chevron could retain some or all of the assets. The company did not respond to requests for comment and Bank of America declined comment.
The divestment aligns with Chevron’s broader strategy to boost financial performance and focus on higher-margin opportunities amidst an uncertain oil price environment. The company is also reducing its global workforce by up to 20% while managing costs and competing in a volatile market.
Recent US midstream deals highlight robust activity, with MPLX purchasing Northwind Midstream for $2.4 billion and Plains All American acquiring a stake in the EPIC Crude pipeline for $1.6 billion. — Reuters
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