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Anadarko divests Marcellus shale natural gas assets for $1.24 billion

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Linus Unah – Fourth Estate Contributor

Houston, TX, United States (4E) – U.S. energy company Anadarko Petroleum Corp. Wednesday said it will sell some natural gas assets in the Marcellus Shale of north-central Pennsylvania to a subsidiary of Alta Resources Development LLC for about $1.24 billion.

The American oil and gas producer said midstream assets in the Marcellus owned by its sponsored master limited partnership, Western Gas Partners, are excluded from the agreement.

“With this transaction, we have announced or closed monetizations totaling well in excess of $5 billion in 2016, while principally focusing Anadarko’s U.S. onshore activities on our world-class oil-levered assets in the Delaware and DJ basins,” Anadarko’s chairman and chief executive officer Al Walker said in a statement.

The Marcellus Shale divestiture includes about 195,000 net acres and sales volumes from these assets totaled about 470 million cubic feet per day at the end of the third quarter.

The transaction is expected to close during the first quarter of 2017.

Jefferies LLC marketed the assets, and Sidley Austin LLP served as Anadarko’s legal counsel.

The Marcellus shale play is the largest natural gas producing region in the U.S. It runs through Pennsylvania, West Virginia, New York, and Ohio.

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