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.
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
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.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...
Deal insight | Sep 2016
Anadarko acquires Freeport-McMoRan's entire deepwater GoM portfolio for US$2 billion and contingent payments
Have questions? Just let us know how to contact you and we will respond to you as soon as possible.