Anadarko acquires Kerr-McGee and Western Gas.(OIL & GAS)

Anadarko Petroleum Corp. (NYSE: APC) recently announced it has agreed to acquire Kerr-McGee Corp. (NYSE: KMG) and Western Gas Resources Inc. (NYSE: WGR) in separate all-cash transactions totaling $21.1 billion, plus the assumption of debt estimated at $2.2 billion.

"We are creating a combined company with 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," Anadarko Chairman, president and CEO Jim Hackett said.

Anadarko will finance the acquisitions through a $24 billion, 364-day committed acquisition facility provided by UB S, Credit Suisse and Citigroup. Anadarko plans to use proceeds from asset sales, free cash flow from operations and the issuance of equity to reduce debt over the next 18 to 24 months.

Anadarko has agreed to acquire Kerr-McGee Corp. in an all-cash transaction totaling $16.4 billion, or $70.50 per Kerr-McGee share, plus the assumption of net debt and other liabilities estimated at $1.6 billion. Kerr-McGee's year-end 2005 proved reserves (excluding pending Gulf of Mexico shelf divestitures) totaled 898 million barrels of oil equivalent, of which approximately 62 percent is natural gas.

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