Anadarko buys Freeport McMoRan's Oil and Gas Division for 2 Billion

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Shares of Anadarko Petroleum Corp. APC, +0.12% fell 3.5% in late trading Monday after the oil and gas company said its board of directors has agreed to buy the deepwater Gulf of Mexico assets of Freeport McMoRan Oil & Gas for $2 billion.

The deal, expected to close before the end of the year, adds about 80,000 net barrels of oil equivalent a day to Anadarko's portfolio, and doubles the company's ownership in the gulf's Lucius development to 49%, the company said in a statement. "This immediately accretive, bolt-on transaction strengthens our industry-leading position in the Gulf of Mexico and is a catalyst for the company's oil-growth objectives, with quality assets being acquired at an attractive price to create significant value," Anadarko CEO Al Walker said. The deal will generate "substantial" free cash flow, he said.

In a separate statement, Anadarko said it has registered to sell 35.25 million shares of its common stock, with net proceeds used for general corporate purposes. Shares of Anadarko had ended the day up 0.1%.

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