Chevron Offers to Sell Oil and Gas Properties in New Mexico, Texas

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Chevron is offering to sell several oil and gas properties in New Mexico and Texas, according to marketing documents seen by Reuters, as the U.S. oil major looks to cull acreage after major shale acquisitions.

The second-largest U.S. oil and gas producer last month agreed to buy shale firm PDC Energy Inc in a stock-and-debt deal worth $7.6 billion. In 2020, it acquired Noble Energy in a move that boosted its U.S. shale and international gas holdings.

Chevron has been divesting properties in the Permian Basin of West Texas and New Mexico, where it is the largest publicly-traded oil and gas producer and the largest property owner with 2.2 million acres.

This month, it launched an auction for a parcel covering 2,134 net acres in New Mexico and a second covering 29,901 acres in the New Mexico and Texas, according to listings on the EnergyNet online auction site.

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The combined value is about $100 million, according to a source familiar with shale asset values. Both bids are due on July 27, according to marketing brochures.

Chevron did not reply to requests for a comment.

Production at the larger parcel on offer was estimated at about 770,000 barrels of oil and gas net and the smaller parcel was estimated to be about 1,818 barrels of oil and gas equivalent (boe) per day, according to the documents.