Chevron is selling a collection of pipeline assets in the Denver-Julesburg shale basin that are likely to fetch more than $2 billion, people familiar with the matter said.
Investment bankers at Bank of America have been working in recent weeks to solicit potential interest in the infrastructure, which was largely inherited from the oil major’s acquisition of Noble Energy in 2020 and its subsequent full takeover of Noble’s midstream business a year later.
Collectively, the assets generate around $200 million of earnings before interest, taxes, depreciation and amortization (EBITDA), some of the people added. Based on sales of similar assets, Chevron can expect to fetch upwards of $2 billion.
A sale is not guaranteed, and Chevron could ultimately retain some or all of the assets.
Chevron did not respond to a comment request. Bank of America declined comment.
Chevron is one of the largest producers of oil and gas in the Denver-Julesburg basin, which predominantly covers Colorado but also parts of Wyoming.
While clinching its $55 billion acquisition of Hess in July after a long legal battle with Exxon Mobil was a major victory, Chevron has been grappling with how to control costs, compete with rivals, and maintain financial performance, all against an uncertain oil price outlook.