Chevron Corp. (NYSE: CVX) has agreed to sell 64,500 net acres in the Central Basin Platform and Northern Shelf of West Texas—about 5% of its total Permian basin holdings—to private-equity backed E&P Sabinal Energy LLC.
Sabinal Energy, backed by the Kayne Private Energy Income Fund LP, said Sept. 12 it acquired the assets producing about 7,500 barrels of oil equivalent per day (boe/d) in Hockley, Terry and Gaines counties, Texas. Terms of the transaction were not disclosed, but analysts estimated the acreage and production are worth roughly $400 million.
Chevron has said it wants to sell up to 200,000 Permian acres—about 13% of its 1.5 million acres in the Midland and Delaware basins.
Tudor, Pickering, Holt & Co. (TPH) said Chevron’s divestiture is its first major Permian sale and are “clearly outside of the core focus areas for Chevron.”