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Sunday, 07 September, 2008, 04:10 GMT | more prices >>

Anadarko eyes second quarter gas float



By Upstream staff 

US independent Anadarko Petroleum is looking to the second quarter for a public offering of some of its natural gas gathering assets if market conditions are favourable, its chief financial officer said today.

The Houston company first needs to file a new registration statement with the US Securities & Exchange Commission, and approval of that filing is expected in the second quarter, Al Walker, Anadarko’s chief financial officer told investors at the Bear Stearns Global Oil and Gas Conference.

"If the market is supportive, we would like to go forward at that time," Walker said in comments broadcast over the Internet.

Conditions were not favourable in late January and early February, Walker said.

In October, Anadarko said it would offer about 18.8 million common units of a new subsidiary, Western Gas Partners, which would own gas gathering assets, one pipeline and gas treating facilities. Western Gas would operate as a master limited partnership (MLP), it said.

MLPs are popular with energy infrastructure and pipeline owners because the partnerships pay no corporate taxes and distribute nearly all their profits for investors.

The global credit crunch has chilled interest in MLPs, a once red-hot market in the energy sector, because the partnerships are more reliant on capital markets to fund growth.

In November, Devon Energy, the largest independent oil and gas producer by market capitalisation, pulled its planned MLP, citing softness in the market for yield-driven instruments, Reuters reported.


Thursday, 20 March, 2008, 06:09 GMT  | last updated: Thursday, 20 March, 2008, 06:09 GMT

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