Chevron Sells Minority Interest in Colonial Pipeline
Sale helps align assets with company strategiesSAN RAMON, Calif., October 11, 2010 - Chevron Corp. (NYSE: CVX) today announced that a wholly-owned subsidiary, Chevron Pipe Line Co., has sold its 23.44 percent ownership interest in the Colonial Pipeline Co. to an affiliate of Kohlberg Kravis Roberts & Co. L.P. The sale closed on October 8, 2010.
Chevron said in March 2010 that it was pursuing marketing and possible sale of its interest in Colonial consistent with the company's ongoing efforts to align its portfolio of assets with its strategies.
Atlanta-based Colonial owns and operates a 5,500 mile (8,850 km) petroleum products pipeline system in the United States that transports products from supply centers on the Gulf Coast to customers located along the Eastern Seaboard. On average, Colonial delivers 100 million gallons (380 million liters) of gasoline, kerosene, diesel fuel, home heating oil and aviation fuels per day. Other shareholders include Koch (28.09 percent), ConocoPhillips (16.55 percent), Shell (16.12 percent) and IFM (15.80 percent).
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995. Some of the items discussed in this news release are forward-looking statements about the sale of Chevron's interest in the Colonial Pipeline Company. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially include the ability of the company to divest nonstrategic assets and realign business units according to plan; the length of time required to complete all activities related to the sale; changes in prices of, demand for and supply of crude oil, natural gas and petroleum products; actions of competitors; potential disruption or interruption of the company's operating activities due to war, accidents, political events, civil unrest or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Posted: October 12, 2010
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