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Anadarko acquires Freeport-McMoRan's entire deepwater GoM portfolio for US$2 billion and contingent payments


Anadarko acquires Freeport-McMoRan's entire deepwater GoM portfolio for US$2 billion and contingent payments

Report summary

Freeport-McMoRan has agreed to sell its deepwater Gulf of Mexico (GoM) portfolio to Anadarko for US$2 billion and up to US$150 million in contingent payments. The portfolio consists of two recently-onstream fields, the Anadarko-operated Lucius and Heidelberg, and a combination of mature operated and non-operated assets including Holstein and Horn Mountain. The portfolio also consists of 69 exploration leases. Anadarko is adding significant production and cash flow to its GoM portfolio at an attractive price. It increases ownership in Lucius and Heidelberg and gains operatorship of mature low-cost assets with associated infrastructure, which will position the company well for future exploration and development in GoM. The company expects to generate significant incremental cash flow that will be used to reinvest in key US onshore assets. Anadarko's GoM production increases to approximately 155,000 boe/d, making Anadarko the third largest GoM producer.

What's included?

This report includes 1 file(s)

  • Anadarko acquires Freeport-McMoRan's entire deepwater GoM portfolio for US$2 billion and contingent payments PDF - 477.70 KB 9 Pages, 8 Tables, 2 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 10 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Freeport-McMoRan's major deepwater GoM fields
    • Anadarko post-acquisition annual production and capex
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Deal analysis: Table 4
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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