Anadarko and Union Pacific Resources (UPR) closed their $5.7billion merger transaction on Friday successfully. Shareholders ofboth companies gave the thumbs-up on the deal on July 13, and bythe end of business on Friday each UPR share received 0.455 sharesof Anadarko common stock.

Plans for the merger were announced in April. UPR’s common stockceased trading on the New York Stock Exchange on Friday (see DailyGPI, April 4).

“Anadarko expects to report earnings of more than 50 cents pershare for the second quarter of 2000. This is well ahead of streetconsensus and, given the current price outlook, we expect the newAnadarko to earn more than $1 per share in the third quarter,” saidAnadarko CEO Robert J. Allison Jr. “That’s possible because thefundamentals of Anadarko and UPR are complementary… The strengthof the merged companies — the ‘new’ Anadarko — should give usdouble-digit production growth, and strong earnings and cash flow.”

Total proved reserves for the combined companies at year-end1999 were equivalent to 1.94 billion barrels of oil or 11.65 Tcf ofnatural gas. Proved reserves are evenly balanced between crude oiland natural gas. Average daily production in May 2000 was 211,000barrels of oil and natural gas liquids, and 1.7 of gas. The newAnadarko has 56 drilling rigs in operation in the United States,making it the most active domestic driller.

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