SOURCE: Anadarko Petroleum Corporation

Anadarko Petroleum Corporation

March 22, 2011 16:00 ET

Anadarko Announces Acquisition of Wattenberg Plant

HOUSTON, TX--(Marketwire - March 22, 2011) - Anadarko Petroleum Corporation (NYSE: APC) today announced it has agreed to purchase BP America Production Company's 93-percent interest in the Wattenberg Processing Plant (Wattenberg Plant) for approximately $575.5 million. The Wattenberg Plant, located in Adams County in northeast Colorado, has the capacity to process approximately 195 million cubic feet per day (MMcf/d) of natural gas and 15,000 barrels per day of natural gas liquids and gas condensate. Upon closing, Anadarko will operate and have 100-percent ownership of the plant.

"With Anadarko volumes representing about 70 percent of the current throughput, the Wattenberg Plant is a strategic acquisition that further aligns our midstream and upstream assets in one of our expanding core areas," said Chuck Meloy, Anadarko's Sr. Vice President, Worldwide Operations. "We are the largest producer in the Wattenberg field, with current sales volumes of approximately 63,000 BOE (barrels of oil equivalent) per day, and our early efforts in the emerging horizontal Niobrara play are very encouraging. With the anticipated growth in the DJ Basin, we expect this acquisition to improve field recoveries, allow for future expansion and capture efficiencies that enable us to reduce operating expenses.

"The Wattenberg Plant, when combined with Western Gas Partners, LP's (NYSE: WES) ownership position in the Fort Lupton Plant and the recently acquired Platte Valley Plant, gives Anadarko and other area producers exceptional midstream options for development within the Wattenberg field and growth in the greater DJ Basin. Given our flexibility to offer this asset to WES, it is possible that we will recapture the initial and subsequent capital investments in the future, while continuing to benefit from operational improvements in the basin," added Meloy.

Anadarko has approximately 900,000 net acres in the DJ Basin, and the company expects to be running a total of nine operated rigs, including three horizontal rigs, in the basin by the end of March.

The transaction is expected to close by mid-year, subject to applicable regulatory approvals and other contractual conditions.

Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2010, the company had approximately 2.42 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's drilling risks, the ability to execute on production and development plans and the ability to consummate the transactions described in this news release. See "Risk Factors" in the company's 2010 Annual Report on Form 10-K and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

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