SAN FRANCISCO (Thomson Financial) - Anadarko Petroleum Corp. said late Thursday it has completed a $2.2 billion monetization transaction of its midstream asset portfolio.
Proceeds from the deal will be used to reduce the company's acquisition-related debt.
To facilitate the transaction, Houston-based Anadarko said it formed a subsidiary that owns or has rights to substantially all of its midstream assets. An investment entity has raised funds from a group of investors and has advanced the funds to the subsidiary.
Anadarko said it plans to 'further monetize' the subsidiary's assets in the future.
The company expects its midstream portfolio to generate roughly $350 million of earnings before interest, taxes, depreciation and amortization in 2007.
The oil and gas company added that the deal has no effect on its previously announced plans related to its planned midstream master limited partnership, Western Gas Partners LP.
Shares of Anadarko fell 1.2% to close at $66.25. Gabriel Madway gm COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Proceeds from the deal will be used to reduce the company's acquisition-related debt.
To facilitate the transaction, Houston-based Anadarko said it formed a subsidiary that owns or has rights to substantially all of its midstream assets. An investment entity has raised funds from a group of investors and has advanced the funds to the subsidiary.
Anadarko said it plans to 'further monetize' the subsidiary's assets in the future.
The company expects its midstream portfolio to generate roughly $350 million of earnings before interest, taxes, depreciation and amortization in 2007.
The oil and gas company added that the deal has no effect on its previously announced plans related to its planned midstream master limited partnership, Western Gas Partners LP.
Shares of Anadarko fell 1.2% to close at $66.25. Gabriel Madway gm COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.