The monetisations include the forward sale of future royalty income from its natural soda ash interest, the divestiture of its East Chalk asset, and the sale of its interest in the Maverick Basin gathering system.
“These monetisations continue our track record of actively managing our portfolio,” Anadarko Chairman, President and CEO Al Walker is quoted as saying in a statement issued by the firm on Wednesday February 24.
“Consistent with that, we have identified other significant asset monetisation opportunities that we will continue to actively pursue during the year. Our actions to date, which include significantly lowering our 2016 capital spending, improving our cost structure, sharply reducing the dividend and monetising assets, continue to demonstrate our commitment to financial discipline and managing our portfolio in a prudent manner, while investing within cash inflows and reducing net debt, without the need to issue equity,” Mr Walker added.
On February 23, 2016, Anadarko closed an agreement, under which it sold a portion of its future royalties associated with existing soda ash and coal leases in Sweetwater County, Wyo., to a third party for$420 million.
On February 10, 2016, Anadarko signed a sales agreement with an affiliate of Zarvona Energy LLC, to divest its interest in the East Chalk area, primarily located in Tyler and Jasper counties,Texas, for approximately $105 million.
The transaction is expected to close early in the second quarter of 2016, subject to applicable regulatory approvals and other contractual conditions. Anadarko also announced an agreement with Western Gas Partners, LP, whereby WES will acquire a 100-per cent interest in Springfield Pipeline LLC, from Anadarko for $750 million.
Springfield’s sole asset is a 50.1-per cent interest in the Maverick Basin gathering system, located in Dimmit, La Salle, Maverick and Webb counties in South Texas. The transaction is expected to close by March 15, 2016, subject to applicable regulatory approvals and other contractual conditions.