• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 1 hour Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 49 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 6 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 3 hours Theresa May to Step Down
  • 2 hours IMO 2020 could create fierce competition for scarce water resources
  • 5 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 2 hours IMO2020 To scrub or not to scrub
  • 2 hours Devastating Sanctions: Iran and Venezuela hurting
  • 7 hours Total nonsense in climate debate
  • 11 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 4 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 4 hours Apple Boycott in China
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow

Breaking News:

Tesla Shares Rebound On Leaked Musk Email

Anadarko Exits Eagle Ford

Fracking operations

Anadarko has struck a deal to sell its assets in the Eagle Ford shale play to Sanchez Energy Corp. and Blackstone group for US$2.3 billion. The divestment, according to Anadarko chief executive Al Walker, is part of the company’s shift towards higher-return operations elsewhere in the shale patch, and more specifically the Delaware Basin, part of the Permian shale play, and the DJ Basin in Wyoming, as well as the Gulf of Mexico.

The Permian has lately turned into the star of the shale plays and the focus of much investor attention, both from the energy industry and from private investment companies because of its low production costs and still abundant resources. A couple of months ago, the U.S. Geological Survey said the Wolfcamp Basin, also part of the Permian, holds the biggest recoverable reserves discovered in the country so far: 20 billion barrels of crude.

Anadarko’s assets in Eagle Ford that are subject to the deal with Blackstone and Sanchez Energy span 155,000 net acres and produce a daily 45,000 barrels of hydrocarbon liquids plus 131 million cu ft of natural gas. The transaction should close by the end of March. Anadarko will retain control of its midstream operations in Eagle Ford.

The Eagle Ford divestment follows another sale of Anadarko’s upstream and midstream assets in another shale play, Marcellus. That deal’s size was US$1.24 billion.

Anadarko, which was named the best employer in oil and gas by a survey from job site Indeed, had a debt load of US$15.7 billion as of last September, and the large-scale divestiture deals are part of efforts to tackle this load. The focus on higher-return projects is another part of the company’s strategy.

In its latest quarterly financial report for July to September 2016, Anadarko reported revenues of US$1.89 billion and loss per share of US$1.61. Loss per share for the first nine months of the year stood at US$5.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News