With the approval of Western Gas Resources Inc. shareholders Wednesday, Houston-based Anadarko Petroleum Corp. officially completed the $21.1 billion cash acquisition of producers Western Gas and Kerr-McGee Corp.
The vote by the shareholders of Denver-based Western Gas Resources was the last hurdle to clear. The Federal Trade Commission, the Wyoming Public Service Commission and Kerr-McGee stockholders approved the transaction earlier this month. Anadarko first announced its plans to acquire the two producers in June (see Daily GPI, June 26).
An Anadarko spokeswoman said the company closed on its merger with Western Gas following the stockholder vote, and closed on its acquisition of Oklahoma City, OK-based Kerr-McGee on Aug. 10. The company will now focus on integrating the two producers, as well as selling its Canadian production assets and other noncore assets, she noted.
Western Gas stockholders at the close of business Wednesday were due to receive $61 in cash for each share of Western Gas common stock they own. Trading in Western Gas common stock on the New York Stock Exchange also was due to terminate at the end of Wednesday. Anadarko said it has retired all of the outstanding indebtedness of Western Gas.
Kerr-McGee fetched $16.4 billion, or $70.50/share, plus assumption of net debt and other liabilities estimated at $1.6 billion.
The $21.1 billion cash deal for Kerr-McGee and Western Gas will give Anadarko leading positions in the Gulf of Mexico and the Rocky Mountain region. It’s the eighth-largest energy deal of all time, according to Thomson Financial, behind BP Amoco’s 1999 acquisition of ARCO (see Daily GPI, April 5, 1999) and ahead of last year’s ChevronTexaco-Unocal pairing (see Daily GPI, April 5, 2005).
Western Gas Resources is an independent natural gas explorer, producer, gatherer, processor, transporter and energy marketer. Its producing properties are located primarily in Wyoming, including the developing Powder River Basin coalbed methane play, where Western Gas is a leading acreage holder and producer; and the rapidly growing Pinedale Anticline. Western Gas also owns and operates gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Midcontinent and West Texas regions.
Kerr-McGee’s domestic exploration and production activities primarily are focused in the deepwater Gulf of Mexico and onshore.
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