Anadarko Petroleum sells Eagleford Shale Assets for $2.3bn

Anadarko Petroleum has agreed to sell its Eagleford Shale assets in South Texas to Sanchez Energy and Blackstone Group for nearly $2.3bn.

Anadarko also announced that its sponsored master limited partnership, Western Gas Partners, will continue to own and operate its midstream assets in South Texas and will receive benefits from drilling commitments made by the purchaser with regard to this transaction.

Anadarko chairman, president and CEO Al Walker said: “The ongoing success of our portfolio-management activities provides us with the flexibility to further accelerate capital investments in our higher-return oil opportunities in the Delaware Basin, the DJ Basin, and the deepwater Gulf of Mexico, which drive our ability to deliver a 12% to 14% five-year compounded annual oil growth rate.

“We are deeply grateful to the team at Anadarko, which has built the Eagleford Shale into a coveted asset that will continue to be an important domestic source of energy for our nation.”

In this transaction, Anadarko will sell nearly 155,000 net acres predominantly located in Dimmit and Webb counties.

During the final quarter of 2016, the assets generated sales volumes of around 45,000 barrels of liquids per day and roughly 131 million cubic feet of natural gas per day.

The sale, subject to customary closing conditions and approvals, is expected to close by the first quarter of this year.

Headquartered in Woodlands, Texas, Anadarko Petroleum had proven reserves of nearly 2.6 billion barrels equivalent by the end of 2015, making it one of the largest oil and gas companies worldwide.

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Image: Anadarko Petroleum sells Eagleford Shale assets. Photo: courtesy of Anadarko Petroleum.