Occidental’s offer for Anadarko Petroleum is comprised of 78% cash and 22% stock. Including the assumption of debt, the total value of the bid is roughly $57 billion. (Source: Anadarko Petroleum Corp./Shutterstock.com)
The $38 billion takeover of Anadarko Petroleum Corp. by rival independent oil and gas company Occidental Petroleum Corp. on June 4 received approval by the U.S. Federal Trade Commission (FTC).
Anadarko, based in The Woodlands, Texas, agreed to the acquisition by Houston-based Occidental in early May. The agreement ended a nearly month-long takeover battle for Anadarko between Occidental and Chevron Corp.
Some of Occidental’s shareholders have criticized the company’s takeover of Anadarko, including activist investor Carl Icahn who filed a lawsuit against Occidental last week over the transaction.
RELATED: Carl Icahn Sues Occidental Petroleum Over ‘Misguided’ Anadarko Deal
Occidental’s offer for Anadarko is comprised of 78% cash and 22% stock. Including the assumption of debt, the total value of the bid is roughly $57 billion.
Largely believed to be key to the takeover battle is Anadarko’s nearly 600,000 gross-acre position in the Permian’s Delaware Basin. The portfolio of Anadarko—one of the world’s largest independent E&P companies—also includes deepwater projects offshore Africa and in the U.S. Gulf of Mexico plus a position in Colorado’s Denver-Julesburg Basin.
Occidental has already agreed to sell Anadarko’s Africa assets to French energy giant Total SA for $8.8 billion. The Total transaction has also recently came under fire from Algeria’s energy minister who said he would black the acquisition of Anadarko’s Algeria assets in late May.
RELATED: Total To Hold Talks With Algeria Over Anadarko Assets
On June 4, Occidental said the waiting period for the company’s Anadarko acquisition required under the Hart-Scott-Rodino Antitrust Improvements Act was terminated early by the FTC.
The Anadarko takeover deal remains subject to other customary closing conditions, including approval from Anadarko’s stockholders. The companies expect to close the transaction in the second half of the year.
Emily Patsy can be reached at epatsy@hartenergy.com.
Recommended Reading
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
Baker Hughes: US Drillers Add Oil, Gas Rigs for Third Week in a Row
2025-02-14 - U.S. energy firms added oil and natural gas rigs for a third week in a row for the first time since December 2023.
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-22 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.