BP has sold non‑controlling stakes in its Permian and Eagle Ford midstream assets to Sixth Street for $1.5 billion. The transaction is structured in two phases, with $1 billion paid upon signing and the remaining balance expected by the end of the year, subject to regulatory approvals.
Following the sale, BPX Energy’s ownership interest in the Permian midstream assets will be reduced to 51% from 100%, and its interest in the Eagle Ford assets will fall to 25% from 75%. Sixth Street will hold the remaining non‑operating interests, while BPX will remain the operator of all assets.
The divestiture is part of BP’s $20 billion divestment program by 2027, aimed at reducing capital intensity and freeing capital for higher‑return projects and transition initiatives. By retaining operational control, BPX can continue to manage the assets while the company reallocates capital toward its core upstream and downstream operations.
The $1.5 billion cash inflow is expected to improve BP’s liquidity, support debt‑reduction goals, and enhance shareholder returns in line with the company’s commitment to return 30‑40% of operating cash flow to shareholders. The transaction is projected to generate an annual impact on the income statement of $100‑$200 million.
Kyle Koontz, CEO of BPX Energy, said the divestiture unlocks capital while maintaining operational control, supporting BP’s broader strategy to optimize its portfolio and accelerate its transition to lower‑carbon energy.
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