BP.US is reportedly looking for a buyer for its stake in the U.S. natural gas pipeline system
BP is looking to sell a stake in its U.S. natural gas pipeline network, according to four people familiar with the matter, as the company seeks to raise as much as $3 billion from the sale of up to 49% of the business. The sale is part of CEO Bernard Looney's efforts to reduce the company's debt levels, which have been rising over the past year.
Looney has faced pressure from investors to improve performance and profitability amid a weak stock price and concerns about the company's energy transition strategy.
The company plans to sell stakes in its Lightsource BP solar business, as well as its onshore and offshore wind units in the U.S. Looney is seeking to boost cash flow and reduce debt, and will update the company's strategy in February.
BP said in its third-quarter earnings that net debt at the end of September rose to $24.3 billion 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, lagging any of its rivals. Shell's shares have fallen 3% this year, while Exxon Mobil's have risen 14% and Chevron's nearly 7%.
The U.S. oil and gas pipeline industry has seen more consolidation in recent years as production increases and new pipeline permits make existing assets more valuable.
BP's website shows it has about 1,500 miles of pipelines that move 1.1 million barrels of oil, gas and fuel a day across the U.S.