BP is actively seeking buyers for a stake in its US natural gas pipeline system, with potential deals worth up to $3 billion. Reutersciting four people with knowledge of the matter.
The company is considering selling a stake of up to 49% as part of a strategic initiative by CEO Murray Auchincloss to ease its debt burden.
BP’s pipeline network spans approximately 1,500 miles and transports 1.1 mbbl/d of various fuels across the US.
The move to divest part of its pipeline interests comes amid broader efforts by bp to streamline operations and strengthen financial performance.
The company’s net debt rose to $24.3 billion at the end of September, up from $22.3 billion the year before, partly due to lower-than-expected proceeds from asset sales.
BP shares are down more than 18% this year, underperforming peers. In contrast, Shell’s shares are down 3%, while ExxonMobil’s are up 14% and Chevron’s are up almost 7%.
As bp struggles with a share price that has underperformed its peers, the company is also exploring selling stakes in other energy assets.
These include the solar company Lightsource bp, as well as its onshore wind division in the US and offshore wind projects.
Auchincloss, which is focused on improving cash flow and reducing debt, will provide an update on the company’s strategy in February.
The U.S. oil and gas pipeline industry has seen a trend toward consolidation as difficulties in obtaining permits for new pipelines have increased the value of existing infrastructure.
While bp has declined to comment on the potential sale, the information comes from sources who requested anonymity due to the private nature of the conversations.
“BP Seeks to Sell Stake in US Pipeline to Reduce Debt” was originally created and published by Offshore Technology, a brand owned by GlobalData.
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