Stopping to catch its breath following a busy summer on the acquisition and divestiture front, The Woodlands, TX-based Anadarko Petroleum Corp. said last week it is well on its way to restoring its balance sheet while putting in place permanent financing for its August acquisitions of Kerr-McGee Corp. and Western Gas Resources Inc. Following the announcement two weeks ago that it is selling its Canadian subsidiary, the company added that it is also eyeing further divestitures.

Anadarko said it has received the proceeds from last week’s $5.5 billion offering of new-issue senior notes, which will be used to repay borrowings under the 364-day term loan agreement used to finance the Kerr-McGee and Western Gas acquisitions. The company reported in late June that it would pay $21.1 billion cash for Kerr-McGee and Western in two gas-heavy deals that will give it leading positions in the Gulf of Mexico and the Rocky Mountain region (see NGI, June 26).

Anadarko said its bond financing represented the largest issuance ever by an independent oil and gas company and was the third largest corporate bond financing done in 2006 in the United States.

Two weeks ago (see NGI, Sept. 18), Canadian Natural Resources Ltd. agreed to buy Anadarko Canada Corp. for US$4.075 billion ($4.24 billion when including working capital adjustments). The Anadarko subsidiary had been put on the market in late June (see NGI, July 3) with proceeds intended to fund Anadarko’s blockbuster acquisition of Kerr-McGee and Western Gas (see NGI, Aug. 28).

“We are very pleased our bond issuance was so well received by the market. This issuance and last week’s agreement to sell our Canadian subsidiary are important milestones with respect to our balance sheet restoration and the permanent financing of our acquisitions,” said Al Walker, Anadarko’s CFO. “These major accomplishments were achieved within 90 days of our June 23rd announcement of the Kerr-McGee and Western Gas acquisitions, placing us well along the path we have mapped out for investors.”

Walker added that the company is continuing its efforts to market selected assets, which will generate proceeds for debt reduction. Among those being actively marketed are certain deepwater Gulf of Mexico properties and international interests, including the company’s Mackenzie Delta and other Canadian arctic properties. The company is also marketing the former Kerr-McGee headquarters tower in addition to other property in Oklahoma City, according to an article in The Oklahoman.

“In addition to raising capital for debt reduction, targeted divestitures are expected to result in a portfolio of assets that is less capital intensive, more geographically concentrated, and has better growth potential with lower execution risk,” Walker said.

The company also changed the planned date of its 3Q2006 earnings conference call to Nov. 7, 2006. Anadarko will host an analyst and investor conference on Dec. 12, at which time it will begin to provide guidance for the post-acquisition entity for 2007 and 2008.

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