Anadarko to Divest Canadian Subsidiary
Anadarko Petroleum Corp. plans to sell its wholly owned subsidiary, Anadarko Canada Corp., as part of its portfolio refocusing efforts related to the recently announced agreements to acquire Kerr-McGee Corp. and Western Gas Resources, Inc.
"Anadarko has built one of Canada's leading natural gas operations over the past six years, and I am very proud of all that our Canadian group has been able to accomplish through exploration and high-value natural gas resource development," Anadarko Chairman, President and CEO Jim Hackett said. "Properties like ours are in high demand in Canada right now, attracting valuations significantly above those reflected in our stock price. This arbitrage opportunity motivates us to essentially trade out of the Canadian operations and into the Kerr-McGee and Western properties."
Hackett said the divestiture is expected to proceed quickly, as the company already has received unsolicited expressions of interest from multiple parties. Proceeds from the expected sale would be used to retire debt associated with the Kerr-McGee and Western Gas Resources acquisitions.
Anadarko Canada currently produces approximately 340 million cubic feet equivalent per day, about 85 percent of which is natural gas. Year-end 2005 proved reserves in Canada totaled nearly 1.6 trillion cubic feet equivalent, of which almost 85 percent were natural gas and 76 percent were proved developed. Anadarko Canada has about 575 employees and is headquartered in Calgary with major area offices in Edson, Grande Prairie, and Medicine Hat, Alta., and Fort St. John, B.C.
"Two years ago, we demonstrated our ability to execute on a major portfolio refocusing effort, expeditiously and with higher-than-anticipated results," Hackett said. "We intend to do so again, and therefore are not waiting for the acquisitions to close before launching the effort, since we expect to divest certain assets that are part of the current Anadarko portfolio."
Anadarko Petroleum Corp.'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 2.45 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. Anadarko's operational focus in North America extends from the deepwater Gulf of Mexico, up through the western U.S. and Canadian regions and onto the North Slope of Alaska. Anadarko's international activities are focused on major positions in North Africa, the Middle East, and Indonesia, as well as exploration or production operations in several other countries.
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