Anadarko Petroleum Corp. is diving even further into deepwater Gulf of Mexico with a $2 billion acquisition of assets from Freeport McMoran Inc., the company announced Monday.
The deal, effective Aug. 1, will be immediately accretive, Anadarko CEO Al Walker, said in a news statement. It is expected to close by the end of the year.
The $2 billion buy will achieve several objectives for the Houston-based exploration and production company (E&P), including:
- doubling Anadarko’s ownership in the Lucius development to about 49 percent
- expanding the company’s infrastructure throughout the Gulf of Mexico
- generating $3 billion in incremental cash flow during the next five years at current prices
- enabling the company to accelerate investment in Anadarko’s Delaware and DJ basin assets
The Delaware basin made headlines recently when another Houston-based E&P, Apache Corp., announced a major find in the region.
All told, Anadarko’s Gulf position will have net sales volumes of about 155,000 barrels of oil equivalent per day (boepd), 85 percent of which is oil, Walker said.
For their part, Freeport McMoran CEO Richard Adkerson said in a news statement the deal brings the company’s total asset sales in 2016 to more than $6 billion. Freeport McMoran is focusing on dedicating capital and management resources to its global copper business, he said.
Photo courtesy of Anadarko Petroleum Corp.
source: http://www.rigzone.com/news/article.asp?a_id=146571&utm_source=WeeklyNewsletter&utm_medium=email&utm_term=2016-09-16&utm_content=&utm_campaign=feature_2
