Anadarko Petroleum Corp. (NYSE: APC) has agreed to sell its operated and non-operated upstream assets and operated midstream assets in the Marcellus Shale of north-central Pennsylvania to Alta Marcellus Development LLC, a wholly owned subsidiary of Alta Resources Development LLC, for approximately $1.24 billion. The midstream assets in the Marcellus owned by Western Gas Partners LP (NYSE: WES), Anadarko's sponsored master limited partnership, are excluded from the agreement.
"With this transaction, we have announced or closed monetizations totaling well in excess of $5 billion in 2016, while principally focusing Anadarko's US onshore activities on our world-class oil-levered assets in the Delaware and DJ basins," said Al Walker, Anadarko chairman, president, and CEO.
The Marcellus Shale divestiture includes approximately 195,000 net acres and, at the end of the third quarter of 2016, sales volumes from these properties totaled approximately 470 million cubic feet per day.
The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions and adjustments. Jefferies LLC marketed the assets, and Sidley Austin LLP served as Anadarko's legal counsel.