You are here
SAN RAMON, Calif. -- ChevronTexaco Corp.'s North America Exploration and Production Co. has sold a package of 150 onshore producing properties to XTO Energy Inc. for $1.1 billion. The properties are located in seven states, with more than 90 percent of current production in Texas and New Mexico. The company expects to record a significant gain to income upon close of the sale, which is anticipated in the third quarter of this year.
The sale is one component of the company's plans to improve the competitive performance of its upstream portfolio through the divestment of non-strategic assets and the realignment of strategic business units. To date, the company has reached agreement to sell approximately two-thirds of the producing properties targeted for sale in ChevronTexaco's ongoing U.S. divestment program.
ChevronTexaco vice chairman Peter Robertson said, "This sale is significant. It is a key step in our drive to streamline our portfolio of assets to approximately 400 core fields that represent the vast majority of our long-term value in the United States and Canada. Furthermore, the transaction allows us to focus on maximizing and growing the value of our base business."
Ray Wilcox, vice president of ChevronTexaco and president of ChevronTexaco Exploration and Production Co., added that ChevronTexaco will continue to strengthen its North American portfolio, which is built on strong positions in strategic oil and gas regions. "We're the No. 1 producer in California and the Gulf of Mexico Shelf, the No. 2 producer in the Permian Basin, and the No. 3 natural gas producer in the United States. The sale allows us to focus our resources on core properties and future opportunities that can add the most value to ChevronTexaco stockholders."