Anadarko to Sell South Texas Assets to Sanchez Energy and Blackstone -- 2nd Update
January 12 2017 - 9:52PM
Dow Jones News
By Maria Armental
Anadarko Petroleum Corp. has agreed to sell its South Texas
oil-and-gas assets to Sanchez Energy Corp. and Blackstone Group LP
for $2.3 billion.
The Wall Street Journal had reported on the deal in October,
citing people familiar with the matter.
The deal, expected to close in the first quarter, includes
roughly 155,000 net acres located next to Sanchez's Catarina asset,
about 100 miles southwest of San Antonio, more than doubling its
drilling inventory.
Anadarko has been selling assets aggressively -- going well over
its sales target last year -- as it shifts its drilling focus to
Texas and Colorado.
Last month, Anadarko agreed to sell off natural-gas fields in
Pennsylvania's Marcellus shale and some pipelines in the area for
$1.2 billion to a subsidiary of Alta Resources Development LLC, a
private energy company funded by Blackstone Capital Partners..
In addition to paying down debt, Anadarko said it would invest
some of the money in its assets on the DJ Basin in Colorado, the
Delaware Basin in Texas and the deepwater Gulf of Mexico.
Western Gas Partners LP, Anadarko's master limited partnership,
still owns and operate midstream assets in the area and will likely
do business with Sanchez and Blackstone.
Kirkland & Ellis LLP served as legal adviser and Jefferies
& Co. served as the sole financial adviser to Blackstone.
Intrepid Partners served as Sanchez Energy's sole financial adviser
and Akin Gump Strauss Hauer & Feld LLP and Kirkland & Ellis
LLP as its legal advisers.
Sanchez Energy's rose 1.7% to $8.85 in after-hours trading and
Blackstone's 0.5% to $30.35 while Anadarko's were up 0.14% to
$71.59.
Dana Mattioli, Erin Ailworth and Kevin Kingsbury contributed to
this article.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
January 12, 2017 21:37 ET (02:37 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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