History
Anadarko spent a decade settling big legacy liabilities and refinancing its debt, then briefly agreed to a Chevron sale before being acquired by Occidental in August 2019.
2010-2011: Refinancing and the Macondo settlement
The record opens in August 2010, when Anadarko sold $2.0 billion of 6.375% senior notes due 2017. It said the money would repay about $1.3 billion of debt due in December 2012 and cover general needs, including refinancing other near-term maturities. In September it signed a new $5.0 billion, five-year secured revolving credit facility led by JPMorgan Chase, replacing an undrawn $1.3 billion one. Nothing was borrowed under it at the time.
The larger event came in October 2011, when Anadarko settled with BP over the Deepwater Horizon (Macondo) oil spill. It agreed to pay BP $4.0 billion in cash within 45 days and hand over its 25% interest in Mississippi Canyon block 252. In return BP dropped about $6.1 billion of invoices and future cost claims and indemnified Anadarko for certain damage claims. Fines, penalties and punitive damages were not covered, though Anadarko said it did not see them as a material risk. The payment was to come from cash and the credit facility, with a possible sale of its Brazilian subsidiary to repay borrowings.
2014-2015: Paying for Tronox
The records are quiet for 2012 and 2013. In April 2014 Anadarko and its Kerr-McGee subsidiary settled the Tronox lawsuit, which concerned alleged actions by Kerr-McGee before Anadarko acquired it in 2006. The price was $5.15 billion, and the company expected a net tax benefit of about $550 million.
To fund it, Anadarko signed two new unsecured credit facilities in June 2014, a $3.0 billion five-year one and a $2.0 billion 364-day one. They became available only once the settlement was approved and paid and the 2010 secured facility was repaid. In July it also sold $1.25 billion of senior notes, split between 2024 and 2044 maturities, for general purposes. The settlement became final on January 21, 2015 and was paid on January 23. Anadarko then ended the $5.0 billion secured revolver, with all liens released and no penalties.
In June 2015 it sold 8,000,000 7.50% tangible equity units at $50 each. Each combined a contract to deliver Western Gas Equity Partners units, or Anadarko stock instead, by June 7, 2018, with a small note paying quarterly cash installments.
2016-2018: New debt and new shares
In March 2016 Anadarko sold $3.0 billion of senior notes maturing in 2021, 2026 and 2046. The proceeds were meant to refinance the 5.95% notes due September 2016 and part of the 2017 notes issued in 2010.
In September 2016 it sold 40,537,500 new common shares, including the underwriter's extra allotment, for net proceeds of about $2,157.3 million. The money was to fund deepwater Gulf of Mexico property interests, with the rest for general purposes. Shares on issue rose from 508 million at the end of 2015 to 551 million a year later, then eased to 531 million in 2017 and 490 million in 2018; the records do not explain the later falls.
In October 2017 the company held three exploration licenses offshore Peru. In November 2018 it agreed a reorganisation of its midstream (pipeline and processing) businesses, in which Western Gas Partners would merge into Western Gas Equity Partners. Anadarko held 77.8% of the latter. The records do not show it completing.
2019: Chevron, then Occidental
On April 11, 2019 Anadarko agreed to be bought by Chevron for $16.25 in cash plus 0.3869 of a Chevron share per Anadarko share, valued at $65 a share, or $33 billion in total. On May 9 it ended that deal, paid Chevron a $1 billion termination fee, and signed with Occidental instead: $59.00 in cash plus 0.2934 of an Occidental share per share.
By Occidental's July 8 price the offer was worth about $73.46 per share. Stockholders approved on August 8, 2019, with 374.8 million votes for and 1.27 million against. The merger closed that day, and Anadarko became an indirect wholly owned Occidental subsidiary. It ended its $3.0 billion revolver with nothing borrowed, and all directors and officers left their roles. Holders rejected the non-binding vote on merger-related executive pay, 267.3 million against and 106.4 million for. Trading on the New York Stock Exchange stopped from August 9, and on August 19 Anadarko ended the registration of its securities, ending its reporting obligations.
Written from the 20 story beats below (2010 to 19 Aug 2019), which come from the company's own announcements and filings.