Chevron is reportedly considering selling a portfolio of pipeline assets in Colorado’s Denver-Julesburg (DJ) shale basin valued at over $2 billion, according to Reuters. The assets, which Chevron gained through its 2020 acquisition of Noble Energy and its subsequent full takeover of Noble’s midstream operations, are being marketed by Bank of America. The bank is currently reaching out to potential buyers, sources familiar with the matter told the news agency. Both Chevron and Bank of America declined to comment on the matter.
The potential sale aligns with Chevron’s ongoing efforts to cut costs and focus on high-return operations. The company, one of the largest oil and gas producers in the DJ basin, recently completed its $53 billion acquisition of Hess Corporation, following a lengthy legal dispute with ExxonMobil over Guyana’s Stabroek offshore oil block. The ruling from the International Chamber of Commerce in Paris cleared the way for Chevron to finalize the deal, giving it a key foothold in one of the world’s fastest-growing oil regions while increasing pressure to optimize its global portfolio.
Chevron’s divestment strategy also coincides with significant organizational changes. The company announced plans to reduce its global workforce by 15% to 20%, as many as 8,000 positions, by 2026 as part of a restructuring aimed at improving efficiency and long-term competitiveness. These cuts come shortly after Chevron moved its corporate headquarters from California to Houston, where it employs more than 7,000 people.
According to Reuters, midstream mergers and acquisitions in the United States have remained strong in recent months, driven by both strategic operators and private equity investors. Recent examples include MPLX’s $2.4 billion acquisition of Northwind Midstream and Plains All American’s $1.6 billion purchase of a stake in the EPIC Crude pipeline. Chevron’s possible divestment could represent another major shift in the U.S. midstream landscape as energy companies adapt to volatile oil prices and evolving market conditions.
