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 post-transaction 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 links 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.

A PDF-format version is also available

Worldwide Oil and Gas Production

Anadarko, Kerr-McGee, and Western Gas U.S. Crude Oil and Natural Gas Reserves and Production, 2005

Note: Reserves are at year-end.

Sources: Company information: Anadarko Petroleum Corp, 2005 report to the Securities and Exchange Commission on Form 10-K (March 3, 2006); Kerr-McGee Corp. 2005 report to the Securities and Exchange Commission on Form 10-K (March 3, 2006); and Western Gas Resources Inc., 2005 report to the Securities and Exchange Commission on Form 10-K (February 28, 2006); and U.S. totals: BP p.l.c., BP Statistical Review of World Energy 2006 (June 2006), pp. 6, 8, 22, and 24 (Natural gas production is converted from cubic meters to cubic feet at the rate of 1 cubic meter equals 35.315 cubic feet).

Anadarko, Kerr-McGee, and Western Gas Petroleum Foreign Crude Oil and Natural Gas Reserves and Production, 2005

Anadarko also reported 8 million barrels of crude oil and natural gas liquids production with reserves of 58 million barrels in "other foreign" locations.
Note: Reserves are at year-end.

Sources: Company information: Anadarko Petroleum Corp, 2005 report to the Securities and Exchange Commission on Form 10-K (March 3, 2006); Kerr-McGee Corp. 2005 report to the Securities and Exchange Commission on Form 10-K (March 3, 2006); and Western Gas Resources Inc., 2005 report to the Securities and Exchange Commission on Form 10-K (February 28, 2006); and Foreign totals: BP p.l.c., BP Statistical Review of World Energy 2006 (June 2006), pp. 4, 6, 20, and 22 (Natural gas production is converted from cubic meters to cubic feet at the rate of 1 cubic meter equals 35.315 cubic feet).

Financial Analysis Team, Office of Energy Markets and End Use, Energy Information Administration,
Text last updated: June 23, 2006
File last updated: January 22, 2008