BP Sells Texan Assets for $228 Million
BP said the Sunray and Hemphill plants had a combined processing capacity of approximately 220 million cubic feet of gas a day, as well as an associated "gathering system" of around 2,500 miles of pipelines.
BP also stated the plants would be more "strategically valuable" to a company that specializes in midstream oil and gas operations. The purchaser is Eagle Rock Energy Partners.
The sale is expected to close in the fourth quarter of this year and is the latest deal following BP's decision to streamline its operations after the Gulf of Mexico oil spill.
Results earlier this month showed BP raising $1.9 billion from disposals during the second quarter, and $3.2 billion during the first half. Since the start of 2010, BP has announced disposals of $24 billion and is aiming to raise $38 billion by the end of 2013. BP's balance sheet currently carries assets held for resale of $9 billion.
The disposals follow a period of heavy investment for BP. In particular, the oil group invested $52 billion in the United States between 2007 and 2011 -- a sum that BP says exceeded the U.S. expenditure of any other oil and gas company.
Furthermore, all the disposals should help BP's cash flow and its ability to pay dividends, which currently run at $0.08 per share per quarter, or about 20 pence per share per annum, and supports a 4.5% income.
Right now, BP is just one of a number of FTSE large caps that offers a dividend income well ahead of what you can expect to receive from a standard savings account. If you are seeking other high-dividend possibilities, this special free report that could assist your investment decisions.
"8 Shares Held By Britain's Super Investor" reveals the favorite income stocks held by Neil Woodford -- the City legend who has thrashed the FTSE 100 during the 15 years to 2011 by favoring dividend-paying blue chips.
Just click to download the free Neil Woodford report today. But hurry, this report will remain available for a limited time only.
Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors for 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.
Further Motley Fool investment opportunities:
The article BP Sells Texan Assets for $228 Million originally appeared on Fool.com.Maynard does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.