SOURCE: Anadarko Petroleum Corporation

Anadarko Petroleum Corporation

July 15, 2014 07:30 ET

Anadarko Closes Financial Transactions and Provides Information About Minerals-Interest Ownership

HOUSTON, TX--(Marketwired - Jul 15, 2014) - Anadarko Petroleum Corporation (NYSE: APC) today provided a financial update, including the establishment of a new unsecured five-year credit facility, the issuance of senior notes, and the sale of Western Gas Equity Partners (WGP) common units.

"We continue to enhance our liquidity, monetize asset value, and improve our financial flexibility," said Bob Gwin, Anadarko Executive Vice President, Finance and Chief Financial Officer. "We successfully entered into a $3.0 billion five-year unsecured credit facility and a $2.0 billion 364-day facility, at lower pricing, which will replace our $5.0 billion secured credit facility upon satisfaction of certain conditions. We also re-entered the bond market for the first time in four years, issuing $1.25 billion of 3.45-percent 10-year and 4.50-percent 30-year notes. In addition, we completed the first WGP secondary offering, selling 5.75 million common units held by Anadarko. Anadarko received cash proceeds of more than $335 million from the WGP offering, and still owns more than 88 percent of WGP, with a current market value of approximately $11.5 billion.

"These steps reflect our commitment to maintaining financial flexibility and accelerating value through monetizations, as we continue to deliver differentiating value for our stakeholders from the tremendous opportunity set embedded in our portfolio," added Gwin.

Among the expanding opportunities embedded in the portfolio is the company's substantial minerals-interest ownership, which includes its Land Grant fee acreage, representing approximately 8 million acres in the Rocky Mountain region, highlighted by strategic positions in Colorado's Wattenberg field and Wyoming's Moxa, Wamsutter and Monell areas.

"In total, oil and natural gas revenues from both operated and non-operated production, as well as third-party coal, soda ash and other hard minerals operations on Anadarko's fee-mineral acreage, resulted in approximately $675 million of revenue in 2013, and is trending higher in 2014 based on first-quarter results," said Gwin. "Our extensive minerals-interest ownership significantly enhances our rates of return in key growth areas, with no capital burden, while providing future options for additional value acceleration."

Details regarding the company's minerals royalty interests and each of the actions described above are available at the links below:

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 court approval of the settlement agreement related to the Tronox Adversary Proceeding and the payment of the settlement proceeds; Anadarko's ability to meet financial and operating guidance, achieve its production targets, including anticipated growth rates, and timely complete and commercially operate the projects and drilling prospects identified in this news release; and factors affecting royalty interests. See "Risk Factors" in the Company's 2013 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and news releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.