SAN RAMON, Calif. -- For a major oil company such as Chevron Corp., the purchase of 122 stores is, on the surface, a minor acquisition. But in a day and age when most majors are letting go of company-owned and -operated stores to concentrate on refining and improve wholesale networks, last week's deal between Chevron and USA Petroleum Corp. runs decidedly against the grain.
Add to that the fact that Chevron intends to operate the California stores itselfsomething the company does with only about 450 stores nationwideand the arrangement proves even [image-nocss] more unexpected. This is a relatively small transaction for us. We're not adding a huge amount of market share, Donald Campbell, Chevron's manager of media relations, told CSP Daily News. California is an important market for Chevron, and we are looking for the opportunities to expand both the Chevron and Texaco brands here.
Campbell is quick to point out that this doesn't mean the company is on a buying spree with plans to drastically change its strategy in favor of company-operated stores. Rather, he said the USA Petroleum purchase fell into an important niche for the company. We've been trying to grow our retail share in the Southwest and West, he said. From a corporate perspective, that's where we've got most of our stores. It's a niche purchase for us. It's an opportunity for us to find a way to develop more Chevron and Texaco brands.
It's also an opportunity for us to have better positions to supply the market with gasoline, and that's an important factor given times when there can be supply crunches.
Of the roughly 450 company-operated stores owned by Chevron, about 300 are in California, according to Campbell. About 1,500 of the 10,000 stations in California are branded either Chevron or Texaco, a brand now exclusively owned by Chevron Corp. The San Ramon, Calif.-based company also has about 9,400 branded sites across the United States.
We don't operate a very high percentage of our sites, said Campbell. We're constantly evaluating our sites. There's an ebb and flow about what we buy and what we sell. This transaction was opportune. We don't have a specific strategy to dramatically expand in California, [but] we are always looking to optimize our portfolio of assets.
Campbell said USA Petroleum initiated the sale negotiations as owner John Moller looked to scale back the Thousand Oaks, Calif.-based company's operations. After nearly 50 years, I believe it is appropriate to sell some of our retail gas station holdings, Moller said in a statement, and I believe that the transition to Chevron also will be good for my customers and station employees.
Chevron plans to upgrade the sites with new image standards, either under the Chevron or Texaco brand. The transaction is subject to regulatory approval.
USA Petroleum owns and operates retail stations primarily in California. The majority of the stations involved in the transaction currently sell USA-branded gasoline, with a small number branded Chevron and Shell.
Chevron conducts business in approximately 180 countries around the world, producing and transporting crude oil and natural gas and refining, marketing and distributing fuels and other energy products. Chevron USA is a wholly owned subsidiary of Chevron Corp., San Ramon, Calif.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.