BP Seeks Buyer for U.S. Gas Pipeline Stake - Reuters

BP is seeking buyers for a portion of its U.S. natural gas pipeline network to address rising debt levels, according to Reuters. Sources familiar with the situation reported that the company could secure up to $3 billion from the transaction. One source indicated that BP is considering selling up to a 49% stake in the network.

The decision to sell assets is part of a broader strategy by BP's CEO, Murray Auchincloss, aimed at reducing the company's increasing debt over the past year. The sale is one of several planned divestitures, including shares in Lightsource BP, solar segment assets, and both onshore and offshore wind operations in the U.S. Auchincloss aims to strengthen cash flow and reduce company debt, with a strategic update expected to be presented in February.

BP's net debt rose to $24.3 billion at the end of September, as reported in the company's third-quarter results, partly due to asset sales falling short of expectations; this figure was $22.3 billion the previous year.

The company's stock performance has been poor, experiencing a decline of over 18% in value this year, a sharper decrease compared to its peers in the sector. In comparison, Shell’s stock dropped by 3%, while ExxonMobil saw a 14% increase, and Chevron reported nearly a 7% gain.

The U.S. oil and gas pipeline industry has recently been undergoing a consolidation trend, driven by increasing production and challenges in obtaining permits for new pipelines, which is making existing infrastructure increasingly valuable.

BP's U.S. pipeline assets span approximately 1,500 miles and are responsible for transporting 1.1 million barrels of crude oil, natural gas, and other fuels daily across the country. The company declined to comment on the sale, and those who disclosed the information spoke anonymously as they were not authorized to speak publicly on the matter.