AP News, December 12th, 2006
Anadarko Petroleum Corp., one of the nation's largest independent energy exploration and production companies, expects to detail additional asset sales Tuesday that will allow for reduced debt and a more valuable portfolio.
An announcement of divestitures targeted by the end of 2007 was planned at an investor conference where the company said it will also provide an overview of operating and financial expectations.
The company, based in suburban The Woodlands, said Monday it expects incremental after-tax proceeds from the asset sales to total between $5 billion and $9 billion.
Anadarko had an active third quarter, featuring a mix of acquisitions and sales.
In August, Anadarko closed deals to buy Kerr-McGee Corp. and Western Gas Resources Inc. for a total of $22.5 billion. It immediately began to transform its combined portfolio and reduce debt by $15 billion, primarily through divestitures.
To date, the company has announced agreements to sell assets for about $5.5 billion on an after-tax basis.
"The Kerr-McGee and Western Gas acquisitions were not intended to make us a bigger company," Anadarko chairman and chief executive Jim Hackett said in a statement released after Monday's closing bell. "The goal was to create a better, more consistent growth model."
Separately on Monday, Merrill Lynch analyst John Herrlin Jr. upgraded Anadarko to "buy" from "neutral" in part because of forecasts for higher oil prices. Herrlin's target price for Anadarko is $60.
In trading Monday on the New York Stock Exchange, Anadarko shares added 98 cents, or 2 percent, to close at $49.86. In the past year, its shares have traded in a range of $39.51 to $56.98.
