SHARE
Image courtesy of Anadarko Petroleum.

Anadarko Petroleum Corporation said on Wednesday it has agreed to sell midstream assets in the Marcellus shale basin for $1.24 billion.

Houston-based Anadarko has agreed to sell the assets to Alta Marcellus Development, a wholly owned subsidiary of Alta Resources Development.

The deal includes operated and non-operated upstream assets and operated midstream assets in the Marcellus shale area located in north-central Pennsylvania.  

The midstream assets in the Marcellus owned by Western Gas Partners, Anadarko’s sponsored master limited partnership, are excluded from the agreement.

The Marcellus divestiture includes about 195,000 net acres.

At the end of the third quarter of 2016, sales volumes from the properties totaled about 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.

“With this transaction, we have announced or closed monetizations totaling well in excess of $5 billion in 2016, while principally focusing Anadarko’s U.S. onshore activities on our world-class oil-levered assets in the Delaware and DJ basins,” Anadarko Chairman, President and CEO Al Walker said.