Signage displayed on an oil storage tank at the BP-Husky Toledo refinery in Oregon, Ohio, USA
Luke Schallert | Bloomberg | Getty Images
blood pressure The company is seeking buyers for its stake in its U.S. natural gas pipeline network, four people familiar with the matter said.
The British energy company could raise up to $3 billion from the sale, two people familiar with the matter said, with one of the people adding that BP could sell up to 49% of the business.
Two other people familiar with the matter said the sale process is part of BP Chief Executive Murray Auchincloss’s efforts to reduce the company’s debt levels, which have risen over the past year.
BP declined to comment. All four spoke on condition of anonymity because they were not authorized to speak publicly.
With its share price depressed, BP is facing pressure from investors to improve performance and profitability amid concerns over the company’s energy transition strategy.
The company plans to sell shares in Lightsource BP’s solar business as well as its U.S. onshore wind power unit and offshore wind power business. Auchincloss, who is looking to increase cash flow and reduce debt, will update the company’s strategy in February.
BP said in its third-quarter results that net debt rose to $24.3 billion at the end of September from $22.3 billion a year earlier due to lower-than-expected asset disposals.
The company’s shares have fallen more than 18% so far this year, performing worse than any of its competitors. Shell shares down 3% year to date Exxon Mobil rose 14% and Chevron Nearly 7% higher.
The U.S. oil and gas pipeline industry has experienced increasing consolidation in recent years as production growth and permitting issues for new pipelines make existing assets more valuable.
BP has about 1,500 miles (2,414 kilometers) of pipelines that transport 1.1 million barrels of crude oil, natural gas and fuels across the United States every day, according to its website.
