January 17, 2017 - 8:19 AM EST
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Blog Coverage Sanchez Energy and Blackstone Joint Venture to Acquire Anadarko's Eagleford Shale Assets

LONDON, UK / ACCESSWIRE / January 17, 2017 / Active Wall St. blog coverage looks at the headline from Anadarko Petroleum Corp. (NYSE: APC), Sanchez Energy Corp. (NYSE: SN) and The Blackstone Group L.P. (NYSE: BX). Anadarko Petroleum announced on January 12, 2017, that it is selling off its South Texas based Eagleford Shale assets to a Joint Venture formed by Sanchez Energy and private equity Blackstone Group. Anadarko expects to fetch $2.3 billion from the assets divesture. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

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Anadarko is one of the world's largest independent oil exploration and production companies. The divested Eagleford Shale assets include 155,000 net acres in Dimmit and Webb Counties, regions. The company pumped 45,000 barrels of oil a day and 131 million cubic feet of natural gas a day at this location. This assets sale does not include its midstream assets owned by Anadarko in partnership with Western Gas Partners, L.P. (NYSE: WES). The sale is expected to be completed by the end of the first quarter of 2017, subject to fulfilment of statutory requirements.

Comments from all parties

Commenting on the sale, Al Walker, Anadarko Chairman, President and CEO said:

"The ongoing success of our portfolio activities provides us with the flexibility to further accelerate capital investments in our higher-return oil opportunities in the Delaware Basin, the DJ Basin, and the deepwater Gulf of Mexico, which drive our ability to deliver a 12- to 14-percent five year compounded annual oil growth rate."

Tony Sanchez, III, Chief Executive Officer of Sanchez Energy, stated on his part:

"Our continued focus on the Western Eagle Ford, expertise at multi-bench development, efficient cost structure and strong liquidity position will enable us to create significant value from the acquired assets."

Angelo Acconcia, a Senior Managing Director at Blackstone Energy Partners (Oil and Gas Investments) commented:

"We are excited to form this strategic partnership with Sanchez Energy, to help effectuate this transformative acquisition and to help Sanchez Energy grow and facilitate future acquisitions in the area."

The Sanchez Energy and Blackstone Group Joint Venture

Sanchez Energy and the funds managed by Blackstone have formed a strategic partnership to jointly acquire the assets of Anadarko's Eagleford assets. The transaction valued at $2.3 billion will be financed by the partner companies using a mix of cash in hand and financing from commercial banks.

The acquired assets are in close proximity to Sanchez's Catarina's asset. The Catarina assets include 106,000 net acres in Dimmit, LaSalle, and Webb Counties in Texas with a 100% working interest. The acquisition will enable them to tap into cash flow generated from the production of oil from the current assets with approximately 67,000 barrels of oil equivalent per day (boe/d). The assets have proved reserves of approximately 300 MMboed (million barrels of oil equivalent per day) and an estimated potential of more than 1,100 MMboed.

Anadarko's Reasons for Divesture of Assets

Anadarko has been divesting its assets to concentrate on the rig assets located at Delaware Basin, the DJ Basin, and the deepwater drilling in Gulf of Mexico. By the end of the first quarter of 2017, Anadarko aims to have 14 operated rigs in the Delaware Basin and six operated rigs in the DJ Basin. Anadarko expects that the new investments in these basins would generate returns of 35%. Anadarko completed the acquisition of these assets in December 2016. In late December 2016, it had sold off its assets in the Marcellus Shale at north-central Pennsylvania to a wholly owned subsidiary of Alta Resources Development, LLC, for approximately $1.24 billion. The funds from the sale of Marcellus Shale and Eagleford Shale assets are expected to be utilised for the development in the new acquisitions in the Gulf of Mexico.

Stock Performance

On Friday, January 13, 2017, the stock closed the trading session at $71.24, slightly falling 0.35% from its previous closing price of $71.49. A total volume of 2.63 million shares have exchanged hands. Anadarko Petroleum's stock price rallied 11.27% in the last three months, 29.71% in the past six months, and 104.29% in the previous twelve months. Moreover, the stock gained 2.17% since the start of the year. The stock has a dividend yield of 0.28% and a market capital of $39.96 billion.

At the closing bell, Sanchez Energy's share price finished last Friday's trading session at $11.24, surging 29.20%. A total volume of 16.99 million shares exchanged hands, which was higher than the 3 months average volume of 2.32 million shares. The stock has surged 81.29% and 298.58% in the last six months and past twelve months, respectively. The stock currently has a market cap of $665.30 million.

At the close of trading session on January 13, 2017, Blackstone Group's stock price marginally declined by 0.36% to end the day at $30.09. A total volume of 3.49 million shares were exchanged during the session. Blackstone Group's stock price rallied 28.38% in the last three months, 24.04% in the past six months, and 25.01% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 11.32%. The Company's shares are trading at a PE ratio of 23.79 and have a dividend yield of 5.45%. The stock currently has a market cap of $36.13 billion.

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Source: ACCESSWIRE Investor Awareness (January 17, 2017 - 8:19 AM EST)

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