Anadarko Petroleum and Exco Resources have agreed to a deal in which the latter will buy gas and oil fields located in Louisiana from the former, for $1.6 billion. Anadarko CEO Jim Hackett comments, "This divestiture is an important step in refocusing the portfolio following our acquisitions of Kerr-McGee and Western Gas Resources in August ..." A Sanford Bernstein analyst says Exco paid a 'reasonable price,' but from Anadarko's perspective, he adds, "... it's never a question of what the price is. It's a question of what the price was relative to what they bought in the first place [$22.5b for Kerr and Western]." As Anadarko has been divesting assets to pay off debt, Exco, the T. Boone Pickens backed oil and gas venture has been on an acquisition spree following its February IPO. This latest purchase is the largest of six this year, and it will nearly double its oil and gas reserves, according to Bloomberg. Exco's president comments, "We believe there's more upside there than maybe (Anadarko CEO) Hackett believes."
• Sources: Press Releases [I, II], Bloomberg, Forbes-AP, Reuters
• Related commentary: Anadarko: They've Got It Rigged, News From the Horizontal Drilling Front, EXCO and Comstock Resources: Two Cotton Valley E&P Long Plays
• Potentially impacted stocks and ETFs: Anadarko Petroleum (NYSE:APC), Exco (NYSE:XCO). ETFs: iShares Dow Jones US Oil & Gas Ex Index (NYSEARCA:IEO), PowerShares Dyn Energy Exploration (NYSEARCA:PXE)
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