Anadarko Sells Natural Gas Assets in Oklahoma and Texas
Anadarko Petroleum has agreed to sell its interests in certain natural gas properties in Oklahoma and Texas to EXCO Resources 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.
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Company: EXCO Resources, Inc. more info
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