Chevron reviewing options for Texas Haynesville shale assets - Reuters
Chevron (NYSE:CVX) is weighing options for ~70K net acres of land in east Texas' Haynesville shale after pausing development earlier this year, Reuters reported Wednesday.
Among the options under consideration is a full sale of the Haynesville assets or partnerships with other producers in the region, according to the report, which added that the company has informed some potential buyers of its plans to market the assets early next year.
The acreage - much of it undeveloped - likely will be valued in the low hundreds of millions of dollars, the report said.
The move would be a small first step for Chevron (CVX) as it seeks to sell assets worth as much as $15B over the next five years following its recent multibillion dollar acquisitions of more than 700K acres in U.S. shale assets.
Any wild guesses who may be a player? Maybe SWN? Maybe someone tired of the regulations and pipeline restraints in the Marcellus, such as EQT?
I don't think Chevron's E TX Haynesville will be attractive for major players like EQT and SWN. The acreage is relatively modest, located in the upper portion of the Haynesville fairway (so probably little Bossier potential) and most likely attractive as a "bolt on" acquisition for an operator that already has a priority for that area. Smaller operators like Rockcliff, Sabine or TGNR E TX with existing leasehold in Harrison and Panola counties might be good fits but I wouldn't count out Comstock.