Anadarko to buy Kerr-McGee, Western Gas for $21 billion

U.S. oil and gas producer Anadarko Petroleum said it agreed to buy smaller rivals Kerr-McGee and Western Gas Resources for more than $21 billion in cash to expand in the U.S. Gulf of Mexico and Rocky Mountains regions. The deals are the latest blockbuster acquisitions in the red-hot energy sector. Mid-tier companies that focus on oil exploration and production, in particular, have become attractive takeover targets as oil prices hover around $70 a barrel.

The Woodlands, Texas-based company will acquire Kerr-McGee for $16.4 billion, or $70.50 a share - a 40% premium to Kerr-McGee's stock price. Anadarko's separate deal to acquire Western Gas for $4.7 billion, or $61 a share, is even richer, offering a 49% premium.

The transactions boost Anadarko's position among the biggest North American independent oil and gas producers, though the company remains much smaller than top U.S. oil producers like Exxon Mobil and Chevron. Analysts said the deal appeared expensive, but the assets acquired seemed to complement Anadarko's existing portfolio and would allow it to become a U.S. natural gas powerhouse.

(2006-06-28 12:34:52 SGT) [Energy] Permalink

Comments:

Post a Comment:

Comments are closed for this entry.

« Iran to ration petro... | Main | Rising salaries... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004