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Investing.com -- BP has agreed to sell interests in its U.S. midstream assets to Sixth Street for $1.5 billion as part of its ongoing efforts to reduce net debt.
The British energy major announced Monday that it would divest stakes in assets operated by its U.S. onshore oil and gas business BPX in the Permian and Eagle Ford basins.
The transaction structure includes approximately $1 billion paid upon signing, with the remaining amount expected to be received by the end of the year.
Midstream assets handle the transportation, storage, and processing of oil and gas before these resources reach end-markets.
This sale aligns with BP’s recent strategy reset, which has emphasized increased oil and gas production to enhance shareholder valuations amid declining profitability and rising debt concerns.
The company anticipates its net debt to remain broadly flat at around $26 billion for the third quarter.
The transaction comes as activist hedge fund Elliott Investment Management has taken a stake in BP, adding pressure for the company to take decisive action on its financial position.
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