Anadarko Sells Marcellus Shale Natural Gas Assets

By Brad Kramer January 12, 2017 View Profile

Anadarko Petroleum Corp. will sell a number of its Marcellus shale assets to Alta Marcellus Development LLC for approximately $1.24 billion.

The agreement includes Anadarko’s operated and non-operated upstream assets and operated midstream assets in the Marcellus region of north-central Pennsylvania. However, the midstream assets in the Marcellus owned by Western Gas Partners LP, Anadarko’s sponsored master limited partnership, are excluded from the agreement. Alta Marcellus Development is a wholly owned subsidiary of Alta Resources Development LLC.

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“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,” said Al Walker, Anadarko chairman, president and CEO. “Our Marcellus team has done a superb job of maximizing the value of our position in this natural gas play, and we are grateful for their efforts and dedication.”

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The Marcellus shale divestiture includes approximately 195,000 net acres and, at the end of the third quarter of 2016, sales volumes from these properties totaled approximately 470 million cubic feet per day (MMcf/d).

The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions and adjustments, according to a Dec. 21 company statement. Jefferies LLC marketed the assets, and Sidley Austin LLP served as Anadarko’s legal counsel.

Anadarko Petroleum Corp. is headquartered in Woodlands, Texas. The company’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 2015, the company had approximately 2.06 billion barrels-equivalent of proved reserves, making it one of the largest independent exploration and production companies in the world.