Anadarko Hedges Acquired Oil, Gas
Oil and gas producer Anadarko Petroleum Corp. on Tuesday said it has hedged about 75 percent of the resources acquired in its takeovers of Kerr-McGee and Western Gas Resources last month.
Anadarko said its hedges in place as of Sept. 11 total about 229,000 barrels of oil equivalent per day for the fourth quarter. Hedges total 195,000 barrels of oil equivalent per day in 2007 and 169,000 barrels in 2008.
The hedges amount to about 85 percent, 72 percent and 63 percent of the acquired oil and natural gas volumes, respectively.
The company hedged its fourth-quarter oil production at $53.04 per barrel for fixed and physical contracts and its 2007 production at $51.44. Natural gas was hedged at $7.29 per million British thermal units for the fourth quarter and at $6.96 for 2007, for fixed and physical contracts at all locations.
Combined, Kerr-McGee and Western Gas Resources produced about 270,000 barrels of oil and gas daily in the second quarter.
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