At $70 oil and $4 gas, Chevron estimated the assets’ total proved developed resources - the amount of oil and gas with a 90% or greater probability of profitable extraction - were worth around $1 billion, according to the document.
Including undeveloped inventory, the assets could be valued as high as $3.8 billion at those prices, according to the document. U.S. crude prices were trading at around $69.5 a barrel on Friday, while natural gas was around $4.69 per million British thermal units.
Prospective buyers are likely to bid between $1 billion and $2 billion for the assets, two of the sources said.
Chevron’s Eagle Ford assets, which the company acquired as part of its takeover of Noble Energy last year, span 30,440 net acres and had net production of 30,300 barrels of oil equivalent per day in 2021, with 45% of it being natural gas, according to the marketing document.
The divestment plans come as Chevron reportedly held talks with activist hedge fund Engine No. 1 to detail its plans to cut carbon emissions. Engine No. 1 won three board seats at rival Exxon Mobil in June, using the top U.S. oil producer’s “inadequate” response to climate change as its rallying point.
$2 billion / 30,440 net acres = $66,000 / net acre. And it's a gassy field.
Shares of CVX did not move much today.
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