Anadarko Sells Out of Upstream Eagle Ford in $2.3B Deal
Focusing on higher-return opportunities elsewhere, Anadarko Petroleum Corp. has sold its remaining 155,000 net acres in the Eagle Ford basin in a $2.3 billion transaction with Sanchez Energy Corp. and private equity firm Blackstone Group LP.
In December, Anadarko sold some of its Marcellus assets to Alta Resources Development in a deal worth about $1.24 billion. During the last year alone, Anadarko has sold non-core assets worth more than $7 billion, spokesman John Christiansen told Rigzone.
At the end of 2016, the Eagle Ford assets produced about 45,000 barrels of oil equivalent per day (boepd) and roughly 131 million cubic feet of natural gas per day (MMfcd). The deal is expected to close during the first quarter.
The acquisition will triple Sanchez’s exposure to the upper and middle Eagle Ford, the company said in a statement.
“Upon closing the transaction, we believe we will have locked up the core of the trend within the volatile oil window,” said CEO Tony Sanchez III. “This accretive and transformative acquisition more than doubles our drilling inventory, adds 132 high rate of return DUCs, increases Sanchez Energy’s resource potential by over 550 million barrels of oil equivalent per day (MMboepd) and provides a path for strong growth within projected cash flow.”
Anadarko’s (NYSE: APC) sponsored midstream partnership, Western Gas Partners LP (NYSE: WES) will maintain its ownership and operations of assets in South Texas. The master limited partnership (MLP) is expected to profit from drilling deals the buyers made as part of the transaction, Anadarko said in a statement.
Responding to the commodity price downturn, many exploration and production (E&P) companies have divested non-core assets to focus capital expenditures (CAPEX) on those with higher profit margins.
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