Anadarko to Put Certain Deepwater Gulf of Mexico Assets Up for Sale

Anadarko Petroleum

Anadarko Petroleum provides an update on its financing and divestiture activities following the August 2006 acquisitions of Kerr-McGee Corporation and Western Gas Resources, Inc.

The company today received the proceeds from last week's $5.5 billion offering of new-issue senior notes, which will be used to repay borrowings under the 364-day term loan agreement used to finance the acquisitions. This bond financing represented the largest issuance ever by an independent oil and gas company and was the third largest corporate bond financing done in 2006 in the United States.

"We are very pleased our bond issuance was so well received by the market. This issuance and last week's agreement to sell our Canadian subsidiary are important milestones with respect to our balance sheet restoration and the permanent financing of our acquisitions," Anadarko Senior Vice President and Chief Financial Officer Al Walker said. "These major accomplishments were achieved within 90 days of our June 23rd announcement of the Kerr-McGee and Western Gas acquisitions, placing us well along the path we have mapped out for investors."

Walker said the company is continuing its efforts to market selected assets, which will generate proceeds for debt reduction. Among those being actively marketed are certain deepwater Gulf of Mexico properties and international interests, including the company's Mackenzie Delta and other Canadian arctic properties.

"In addition to raising capital for debt reduction, targeted divestitures are expected to result in a portfolio of assets that is less capital intensive, more geographically concentrated, and has better growth potential with lower execution risk," Walker said.

The company also announced it has changed the planned date of its third quarter 2006 earnings conference call to Nov. 7, 2006.

Anadarko will host an analyst and investor conference at its headquarters in The Woodlands, Texas, on Dec. 12, 2006, at which time it will begin to provide guidance for the post-acquisition entity for 2007 and 2008.