Chevron Corp. is looking to sell a collection of pipeline infrastructure in the Denver-Julesburg (DJ) shale basin that could fetch more than $2 billion.

Investment bankers at Bank of America have recently begun soliciting potential interest in the assets. 

The infrastructure was largely acquired through the oil major's 2020 acquisition of Noble Energy and the subsequent full takeover of Noble's midstream operations a year later, the discussions about it are still private.

The assets collectively generate approximately $200 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). 

Based on comparable sales of similar assets in the midstream sector, Chevron can anticipate a valuation of over $2 billion. However, a final sale is not assured, and the company could ultimately choose to retain some or all of the infrastructure.

The potential divestment comes as Chevron seeks to control costs and compete effectively with rivals amid an uncertain oil price outlook, despite recently clinching its $55 billion acquisition of Hess. 

CEO Mike Wirth told analysts in August that the company would challenge itself to shed assets that detract from more profitable opportunities. Currently, Chevron is in the process of cutting up to 20% of its global workforce.

Acquisition activity in the U.S. midstream sector has been robust. Much of the recent activity has been driven by strategic players reengaging in acquisitions after periods of debt reduction, though private equity firms have also been active buyers. 

Recent major transactions include MPLX agreeing to buy privately-owned Northwind Midstream for $2.4 billion and Plains All American's $1.6 billion deal to acquire a stake in the company owning the EPIC Crude pipeline.