BP Sells $1.5B Texas Assets to Cut Debt, Boost Investor Confidence
BP has announced a significant sale of assets in Texas' Permian and Eagle Ford basins as part of its £15 billion divestment programme. This move aims to reduce debt and regain investor confidence following pressure from activist funds like Elliott, who had criticised BP's previous renewable energy push.
The sale, valued at £1.1 billion, includes stakes in some of BP's onshore oil and gas pipelines in the US. The buyer is Sixth Street, a US investment firm. Upon completion, BP's subsidiary, BPX Energy, will retain a 51% stake in the Permian assets and a 25% stake in those at Eagle Ford.
This deal is part of BP's broader strategy to reshape its portfolio and focus on its core businesses. It follows mounting pressure from investors who had urged the company to prioritise shareholder returns and improve its financial performance.
The sale of these assets to Sixth Street is expected to strengthen BP's balance sheet and support its debt reduction efforts. The company continues to adapt its operations in response to investor demands and the evolving energy landscape.
