HOUSTON--(BUSINESS WIRE)--Anadarko Petroleum Corporation (NYSE:APC) and Apache Corporation (NYSE, Nasdaq: APA) today announced they have signed an agreement whereby Anadarko will receive $1.0 billion and Apache will acquire control of Anadarko’s interests in 28 Permian Basin oil fields in West Texas.
During 2007, the fields are anticipated to produce approximately 12,000 barrels of oil equivalent per day (net) from approximately 3,950 wells within Anadarko’s 143,000 net acres. Nearly 90 percent of the properties are operated by Anadarko. More than 70 percent of the production is oil, primarily produced through water-flood enhanced oil recovery operations.
“This agreement is another important step in refocusing the portfolio following our acquisitions of Kerr-McGee and Western Gas Resources in August,” Anadarko Chairman, President and CEO Jim Hackett said. “We are pleased with the value being realized through this transaction and will use the proceeds to further reduce leverage associated with the acquisitions.”
The parties are entering into a joint-venture arrangement to effect the transaction, which is expected to close in the first quarter of 2007, subject to customary closing conditions and adjustments. The effective date of the transaction is the earlier of the closing date or March 31, 2007.
Tristone Capital Inc. marketed the assets, while Lehman Brothers served as Anadarko’s financial advisor.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2005, the company had 2.4 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. In August 2006, Anadarko acquired Kerr-McGee Corporation and Western Gas Resources, Inc. in separate transactions.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. Anadarko cannot guarantee that it will successfully integrate the recently acquired businesses or complete its pending or proposed asset sales. See “Risk Factors” in the company’s 2005 Annual Report on Form 10-K and other public filings, press releases and discussions with company management. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.