Anadarko's Proposed Acquisition of Kerr-McGee and Western Gas Resources
June 23, 2006
Aspects of Anadarko's Acquisition of Kerr-McGee Corp. and Western Gas Resources
Background
On June 23, 2006, the Wall Street Journal (WSJ) reported that Anadarko Petroleum Corp had agreed to acquire Kerr-McGee Corp. and Western Gas Resources Inc. for $21.1 billion of cash (see "Anadarko to Buy Kerr-McGee, Western Gas for $21.1 Billion" (June 23, 2006)). Anadarko also will assume $2.2 billion of debt from the two companies. Anadarko will pay $16.4 billion ($70.50 per share) and assume $1.6 billion of debt to acquire Kerr-McGee and pay $4.7 billion ($61 per share) and assume $600 million of debt to acquire Western Gas. Additional information is available on Anadarko's web site.
According to the WSJ, Anadarko's president and chief executive officer Jim Hacket noted that the resulting company will have "... industry-leading positions in the deepwater Gulf of Mexico and the Rockies, two of the fastest-growing oil and natural gas producing regions in North America." Based on 2004 filings1 of U.S. Securities and Exchange Commission Form 10-K, the posttransaction Anadarko would have been the second-largest producer of natural gas and the seventh-largest producer of crude oil and natural gas liquids in the United States.
The following tables provide company-level data from various public sources to inform discussions of Anadarko's acquisition of Kerr-McGee and Western Gas Resources. This data presentation is similar to data presentations that have been previously requested from EIA for other significant energy company mergers and/or corporate alliances.
1 Rankings are based on John S. Herold, Inc. Reserves Disclosure Database, in which 2004 is the most recent year.