Anadarko Sells $860 Million in Natural Gas Assets to Exco, Sees More Sales in First Half
Anadarko Petroleum Corp. said Friday it sold natural gas properties to Exco Resources Inc. for $860 million in cash as part of a plan to reduce debt associated with two major acquisitions last year.
According to the company, the proceeds push total income from recent asset sales to $9 billion since Anadarko closed its acquisitions of Kerr-McGee and Western Gas Resources for a total of $21.14 billion last August.
“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,” the company said. Anadarko expects more sales in the first half of the year.
The sale of the properties in Oklahoma and Texas took effect Jan. 1. The deal is expected to close in the second quarter.
Exco said the natural gas properties fit with its geographic strategy. The company expects to finance the acquisition with a new revolving credit facility and a bridge loan from its banking group.
Source: AP via biz.yahoo.com