Recently Anadarko (
) has agreed to buy BP's (
) 93% interest in the Wattenberg Plant, located in the northeastern
part of Colorado, for about $575 million. Anadarko already owns the
remaining interest in the plant. Anadarko is the largest producer
of natural gas in the Wattenberg field and the deal will provide
Anadarko with 100% ownership of the plant. Andarko relies heavily
on natural gas that we estimate accounts for nearly 40% of its
stock value, and it vies for business against established oil and
gas producers like
), ConocoPhillips (
), Chevron (
), BP (
) and Duke (DUK).
price estimate of near $70
is about 15% the current market price.
Growth in Natural Gas Sales Volume
The plant has a capacity to process 195 million cubic feet of
natural gas per day and an additional 15,000 barrels per day of
natural gas liquids and condensates.
Anadarko's natural gas sales volume increased from 558 billion
cubic feet in 2006 to 809 billion cubic feet in 2009 at a compound
annual growth rate of 13%. Last year its sales volume touched 829
billion cubic feet.
Natural gas production from the Wattenberg plant will further
add about 70 billion cubic feet to Anadarko's annual sales volume
in 2011. By 2013, Anadarko's natural gas sales volume may increase
to over 1 trillion cubic feet as a result of its acquisition of
Wattenberg plant ahead of our estimates of 960 billion cubic
Growth in Natural Gas Liquids Sales Volume
Similarly, Anadarko's natural gas liquids production will
increase by about 5.5 million barrels per year due to its
acquisition of Wattenberg plant. Thus its total natural gas liquids
sales volume will reach about 28.5 million barrels in 2011 from 23
million barrels in 2010. By 2013, Anadarko's natural gas liquids
sales volume may increase to just under 40 million barrels in 2013
as a result of its acquisition of Wattenberg plant ahead of our
estimate of just under 31 million barrels.
See our full estimate for Anadarko.