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Chevron Corp is exploring plans to sell its oil and gas assets in Eagle Ford basin in Texas for as much as $3.8 billion, Reuters reported on Friday, citing people familiar with the matter.
The oil and gas giant bought the Eagle Ford shale, as part of its takeover of Noble Energy. It spans across a net of 30,440 acres and production 30,300 barrels of oil equivalent (boe) per day in 2021, with 45% of it being natural gas, as per a marketing document seen by Reuters.
Chevron has retained an investment bank to market the assets, which could be valued as high as $3.8 billion at $70 oil and $4 gas, Reuters reported citing the document.
On Friday, the U.S. crude prices were around $69.27 a barrel, while natural gas was around $4.69 per million British thermal units (btu).
The report said that the initial bids will start from October 12 and the effective date for a potential sale is November 1.
Oil and gas companies have been divesting on assets from Texas to California, cashing out on a more than 40% surge in crude prices for future investments and returns to shareholders.
After its second-quarter earnings and cash flow rose to pre-pandemic levels, the oil and gas giant has also stepped up its divestiture program to boost its balance sheet.
The company also said it will resume share buybacks in the current quarter to reward investors.
Earlier, Chevron has said it is fine-tuning its oil holdings and in June, it announced that it was looking to sell two collections of conventional oil and gas fields in the Permian Basin, together valued at more than $1 billion.
Picture Credit: Reuters