Acquisition and Divestment
Although Coastal's operating revenues dropped considerably between 1996 and 1998, from $12.17 billion to $7.37 billion, the increased production of natural gas by more than 16 percent during 1998 and intended to continue expanding exploration and production operations as the company approached the year 2000. Though Coastal planned to seek international projects and joint ventures abroad, the company remained committed to pursuing opportunities in the United States.
Coastal was acquired by El Paso Corporation in 2001, and El Paso largely divested itself of Coastal's Petroleum business with the Coastal brand being phased out. Its website was closed immediately upon the buyout. El Paso has gradually sold off the Coastal retail gasoline business, and very few of its stations still exist under the Coastal brand as of 2008, many having been converted to other major brands or generic brands. Sunoco acquired 245 service stations from Coastal on February 9, 2001 for approximately $40 million. Coastal's Eagle Point, New Jersey Refinery was sold to Sunoco while refineries in Texas and Aruba were acquired by Valero Energy. A majority of the Coastal retail gas stations were sold to Phillips 66 which later became Conoco Phillips.
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