According to a Reuters report, Chevron is selling its Texas and New Mexico properties in the Permian Basin up for sale as it attempts to divest from the region.
The outlet wrote, “This month, it launched an auction for a parcel covering 2,134 net acres in New Mexico and a second covering 29,901 acres in the New Mexico and Texas, according to listings on the EnergyNet online auction site.”
“The combined value is about $100 million, according to a source familiar with shale asset values. Both bids are due on July 27, according to marketing brochures.”
Reuters noted, “Production at the larger parcel on offer was estimated at about 770,000 barrels of oil and gas net and the smaller parcel was estimated to be about 1,818 barrels of oil and gas equivalent (boe) per day, according to the documents.”
Last month, Chevron agreed to buy PDC Energy Inc. in a stock and debt deal worth $7.6 billion. It also recently acquired Noble Energy to boost its international holdings and U.S. shale positions.
Zacks Investment Research, which currently has the Chevron stock (CVX) as a “hold,” adds, “The dealmaking is presumably a move to sell lower-valued assets in the area and choose high-performance assets. This strategy is perfectly in line with Chevron’s long-term goals.”