Chevron Exploring Options To Sell East Texas Assets: Report

Energy giant Chevron Corp CVX is reportedly evaluating sale options for its East Texas assets.

The asset comprises around 70,000 net acres of land in East Texas' Haynesville shale formation, for which development was stopped earlier this year, as per Reuters.

"Chevron is evaluating opportunities for our East Texas assets and is committed to safely delivering high returns and lower carbon," a spokesperson told Reuters. 

The company could still consider other options for the land, including a partnership with other regional producers who could develop the assets in return for a split of the profits, as per the report.

According to the report, the move reflects a small first step by the company, focusing on offloading offload assets worth up to $15 billion over the next five years following its recent acquisitions of over 700,000 acres in U.S. shale assets.

Last month, CVX penned a deal to acquire Hess Corp HES for $53 billion or $171 per share in an all-stock transaction.

Also earlier, the company acquired PDC Energy in an all-stock deal worth $7.6 billion.

Both deals added around 500,000 barrels of oil and gas per day in the U.S. shale to CVX portfolio.

Last month, CVX reported Q3 FY23 total revenues and other income of $54.1 billion, beating the consensus of $51.44 billion and adjusted EPS of $3.05 (down from $5.56), missing the consensus of $3.75.

Also Read: Chevron Skeptical About Scope For Venezuelan Oil Growth: Report

Price Action: CVX shares are trading lower by 0.21% at $144.75 premarket on the last check Wednesday.