By Jenny Strasburg

LONDON -- Oil giant BP PLC said Thursday it agreed to pay $1.3 billion in cash for a chain of about 280 U.S. fuel and convenience stores and roadside restaurants from TravelCenters of America Inc.

The deal will help BP expand its existing U.S. network of fuel and electric-vehicle-charging stations, a business the London-based company has been growing as it moves deeper into selling coffee and snacks alongside gasoline and other services for drivers.

BP said it expects 15% returns from its business that includes truck stops and EV charging, and eventually sees it fitting into a growing portfolio of energy-transition offerings including hydrogen and renewable natural gas. The TravelCenters deal follows BP's purchase in late 2022 of U.S. biogas producer Archaea Energy Inc. for $4.1 billion, including debt.

The TravelCenters deal price of $86 a share represents an 84% premium over TravelCenters shares' average trading price over the 30 days to Wednesday, the company said Thursday. The deal is subject to TravelCenters shareholder approval. Shares of the roadside chain soared more than 70% after the agreement was announced.

TravelCenters has been expanding its EV fast-charging services, in part through a partnership with Electrify America LLC aimed at rolling out another 1,000 fast chargers for U.S. road trippers, The Wall Street Journal reported last month. U.S. federal and state tax incentives are spurring EV adoption and investments, TravelCenters Chief Executive Officer Jon Pertchik told the Journal.

BP currently has around 22,000 EV-charging points globally, and hopes to have more than 100,000 by 2030.

EV-charger build-outs are complex because of the power and infrastructure required. BP already has deals with vehicle-fleet operators including Hertz Global Holdings Inc. to develop and manage charging networks across North America.

The TravelCenters acquisition fits into what BP calls "convenience and mobility," referring to roadside stations as well as at-home EV charging and services for rental-car, heavy-truck and other vehicle fleets. BP last week said it spent $2.8 billion last year on its segment that includes convenience and mobility, out of $16.3 billion in full-year capital expenditures. The company is aiming to make more than $4 billion in annual earnings from convenience and EV charging, excluding taxes and certain other charges, by 2030.

Last week, in conjunction with reporting record full-year earnings, CEO Bernard Looney said BP aims to increase investment by as much as $1 billion a year through this decade in each of two pillars: oil-and-gas production; and what it calls transition growth engines including bioenergy, hydrogen and EV-charging networks. The latter also includes renewable energy such as wind and solar.

Mr. Looney in the process slowed BP's high-profile shift to lower-carbon energy. He said BP now aims to reduce fossil-fuel production by 2030 by around 25% from 2019 levels. That compares with a previous aim to cut that output by 40% during the same period.

The Journal earlier reported that Mr. Looney was planning to dial back elements of the company's push into renewable energy, in efforts to assure investors it can deliver strong returns in renewable and low-carbon energy while also maintaining oil-and-gas profit.

Write to Jenny Strasburg at jenny.strasburg@wsj.com

(END) Dow Jones Newswires

February 16, 2023 10:38 ET (15:38 GMT)

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