press release

Chevron Press Release - Chevron Announces Intent To Sell Its Coal Subsidiary

Map of Coal Field and Operations

SAN FRANCISCO, Aug. 18, 1998 -- Chevron today announced its intention to exit the coal business and put its wholly owned subsidiary, The Pittsburg & Midway Coal Mining Co. (P&M), up for sale.

Chevron said it is taking the action to focus its resources on the corporation's core oil, gas and chemicals businesses. The company will invite interested parties to evaluate P&M and submit proposals to purchase or otherwise restructure Chevron's interest in P&M.

Including its shares of partnership output, P&M produced 19.6 million tons of coal in 1997. Chevron's coal and other minerals business segment, which primarily comprises P&M coal operations, earned $48 million in 1997.

Based in Englewood, Colo., P&M was founded in Pittsburg, Kan., in 1885. Chevron acquired P&M in 1984 as part of its acquisition of the company's previous owner, Gulf Oil Corp.

P&M owns and operates five coal mines in four states -- the McKinley and York Canyon surface mines in New Mexico, the open-pit Kemmerer Mine in Wyoming, and the underground North River Mine in Alabama and Sebree Mine in Kentucky. Its principal customers are electric utilities and industrial concerns in Alabama, Arizona, Idaho, Kentucky, Texas, Wisconsin and Wyoming.

In addition, P&M has a one-third partnership interest in the Black Beauty Coal Co. in Indiana, a joint ownership with Wesco Resources, Inc., of extensive low-sulfur coal reserves in Montana, and a 30-percent ownership of Inter-American Coal Holding N.V. of Aruba, which has its principal interests in an active coal mine and other assets in Venezuela.

Updated: August 1998