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HOUSTON--(BUSINESS WIRE)--Feb. 2, 2007--Anadarko Petroleum
Corporation (NYSE:APC) today announced it has agreed to sell its
interests in certain natural gas properties in Oklahoma and Texas to
EXCO Resources, Inc. (NYSE:XCO) for $860 million. The sale is
effective Jan. 1, 2007.
"We are very pleased with the progress we have made with our asset
sales program and debt reduction. In the six months since closing the
acquisitions of Kerr-McGee and Western Gas Resources in August, we
have announced property sales approaching $9 billion in after-tax
proceeds. We have accomplished this in light of a highly volatile
commodity market and are ahead of the schedule for asset dispositions
we have previously communicated," Anadarko Chief Financial Officer Al
Walker said. "We currently expect our pro-forma debt-to-capital ratio
at the end of the first quarter, assuming all the transactions
announced to date are closed, to be approximately 50-55 percent.
During the balance of the first half of the year we expect to announce
additional transactions and continue to believe we will accomplish our
goals for balance sheet restoration during 2007."
At year-end 2006, the 155 fields included in the sale were
producing about 103 million cubic feet equivalent of natural gas per
day (net) from more than 1,300 wells. About 69 percent of the
properties are operated by Anadarko. Natural gas accounted for more
than 80 percent of the 2006 production.
The agreement is expected to close during the second quarter of
2007, subject to customary closing conditions and adjustments.
Tristone Capital 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
CONTACT: Anadarko Petroleum Corporation, Houston
Susan Richardson, 832-636-1537
John Christiansen, 832-636-8736
John Colglazier, 832-636-2306
Stewart Lawrence, 832-636-3326
SOURCE: Anadarko Petroleum Corporation