Anadarko Petroleum Corporation Enters into Credit and 364-Day Revolving Credit Agreements
Jun 23 14
On June 17, 2014, Anadarko Petroleum Corporation entered into a credit agreement among Anadarko, as borrower, JPMorgan Chase Bank, N.A., as the administrative agent, Wells Fargo Bank, National Association, as syndication agent, Bank of America, N.A., Citibank, N.A., The Royal Bank of Scotland plc and The Bank of Tokyo-Mitsubishi UFJ Ltd., as co-documentation agents, and the additional lenders party thereto, providing for a five-year senior unsecured revolving credit facility. The aggregate initial commitments of the lenders under the Five-Year Credit Facility are $3.0 billion. The Five-Year Credit Facility contains an uncommitted accordion feature under which the aggregate commitments thereunder can be increased to up to $4.0 billion under certain circumstances. Also on June 17, 2014, Anadarko entered into a 364-Day revolving credit agreement among Anadarko, as borrower, JPMorgan Chase Bank, N.A., as the administrative agent, Wells Fargo Bank, National Association, as syndication agent, Bank of America, N.A., Citibank, N.A., The Royal Bank of Scotland plc and The Bank of Tokyo-Mitsubishi UFJ Ltd., as co-documentation agents, and the additional lenders party thereto, providing for a 364-Day senior unsecured revolving credit facility. The aggregate commitments of the lenders under the 364-Day Credit Facility are $2.0 billion. The availability of borrowings under the 364-Day Credit Facility and of borrowings and letters of credit under the Five-Year Credit Facility is subject to the satisfaction of certain customary conditions precedent. Such conditions precedent must be satisfied or waived by the requisite lenders under each Credit Facility by December 1, 2014, or the commitments under such Credit Facility will terminate. If such conditions are not satisfied or waived prior to October 15, 2014, ticking fees will accrue on the aggregate commitments under each Credit Facility from such date until the availability date thereof or the date of termination of the commitments thereunder. These ticking fees will vary depending on Anadarko's credit ratings. The Five-Year Credit Facility will mature on the fifth anniversary of the availability date thereunder, while the 364-Day Credit Facility will mature on the 364th day after the availability date thereunder. Borrowings under the Credit Facilities generally will bear interest under one of two rate options, at Anadarko's election, at either LIBOR (or EURIBOR in the case of borrowings under the Five-Year Credit Facility denominated in Euro) or an alternate base rate, in each case plus an applicable margin. This applicable margin will vary depending on Anadarko's credit ratings. Following the availability date of each Credit Facility, Anadarko will be required to pay a facility fee on the aggregate commitments under each Credit Facility regardless of use, at the rate described above with respect to ticking fees. The Five-Year Credit Facility contains a sublimit of $750 million for the issuance of letters of credit, $600 million of which has been committed to by the initial issuing lenders thereunder, and a $1.0 billion sublimit for borrowings denominated in Euro, Pounds Sterling or Yen. The proceeds from the Credit Facilities may be used by Anadarko and its subsidiaries (other than Western Gas Equity Partners, LP, Western Gas Partners, LP and their respective subsidiaries) for general corporate purposes.
Exxon Mobil Rumored To Be Pursuing Anadarko
Jun 12 14
Rumors circulated on June 11, 2014, that Exxon Mobil Corporation (NYSE:XOM) could seek to buy Anadarko Petroleum Corporation (NYSE:APC).
Anadarko Petroleum Corp. to Invest $2 Billion in Colorado Operations in 2014
May 19 14
Anadarko Petroleum Corp. expects to invest nearly $2 billion in is Colorado operations in 2014. The company employs more than 1,500 people in the state. The efforts include: Drilling multiple wells about 30 feet apart on a single well pad, reducing the amount of ground needed to drill oil and gas wells. Drilling horizontal wells that can stretch up to two miles underground to take the place of many wells needed to produce the same amount of oil. Using closed loop, or pitless," drilling operations to eliminate the lined, but open, pits of water and mud that come from drilling the well. Concentrating the company's hydraulic fracturing operations in a single location, called a Stim Center, to handle frack jobs on wells up to nearly a mile away, reducing the amount of truck traffic on roads, as well as the time and money spent setting up fracking operations at individual well pads, then moving to the next pad. (Hydraulic fracturing uses water, sand and chemicals to crack underground rock formations to allow oil and natural gas trapped in the rock formation to flow into an oil and gas well.) Using field gas, or natural gas produced at the well in the field, to operate the giant compression pumps at the Stim Center, reducing the need for diesel fuel trucks to deliver fuel for the machines. Using pipelines to carry water, needed for drilling and hydraulic fracturing to and from well sites to reduce truck traffic. Recycling water used in drilling and hydraulic fracturing where possible. Combining the production facilities where oil, water and natural gas is separated into different holding systems and sent to market for multiple wells into a single location.