No 2 US oil company Chevron plans to sell its 12 per cent stake in independent power producer Dynegy, the companies said, as Chevron moves to pare its non-core operations.

Chevron expects proceeds of about $940 million from the sale of the shares.
After Dynegy announced the planned sales, its shares fell  to $9.90 in after-the-bell trading.
Chevron said its Chevron USA subsidiary intends to sell all of its roughly 96.9 million Class A Dynegy shares in an underwritten public offering through Goldman Sachs.
“We want to focus on activities more closely allied with our core business,” said Chevron spokesman Don Campbell.
“We have not earmarked the proceeds for any specific purpose... They’ll be commingled with other funds and used for general corporate purposes,” he said.
Chevron expects to take a gain in the second quarter from the sale, but Campbell said the size of the gain will be disclosed in July.
Dynegy said the sales will not be dilutive to shareholders because the shares being sold are already outstanding.
Chevron took its stake in Dynegy in 1996 when it sold the company its midstream natural gas assets. Dynegy agreed to market Chevron USA’s natural gas production as part of that deal, but the companies ended that arrangement in 2003.
Dynegy sold its natural gas business in 2005.
Last September, LS Power agreed to take a 40 per cent stake in Dynegy as part of a complex deal.