Anadarko Announces New Acquisition Facility

Anadarko Petroleum Corp. announced it will enter into a new 364-day $10 billion facility that replaces its existing $24 billion acquisition facility, effectively extending the maturity of the debt outstanding under the existing facility from August 2007 to April 2008. Other terms of the facility will remain substantially the same.

The original acquisition facility was used to finance the 2006 acquisitions of Kerr-McGee Corporation and Western Gas Resources, Inc. As part of its portfolio optimization activity, the company has been using proceeds from asset sales to reduce the initial $22.5 billion of borrowings under the original facility.

"Anadarko remains on track to accomplish its asset divestiture and debt reduction goals during 2007 as originally planned. The maturity extension through the new facility provides us with additional flexibility during our balance sheet restoration program should market dynamics change," Anadarko Chief Financial Officer Al Walker said. "We are very focused on maintaining our investment grade credit ratings as a strategic component of our business model. In addition to the substantial debt reduction to date, we have announced approximately $4 billion in asset sales that are anticipated to close in the near term and will further reduce the balance outstanding under the facility. We continue to expect our net total debt outstanding at the end of 2007 will be reduced to $12 billion or less."

UBS Investment Bank, Credit Suisse and Citigroup, the arrangers under the original facility, have provided firm commitments to Anadarko to underwrite the entire new $10 billion facility.


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