Sanchez, Blackstone May Team Up to Buy Anadarko's South Texas Assets

By Matt Jarzemsky and Dana Mattioli 

Sanchez Energy Corp. is in talks to partner with Blackstone Group LP on a deal for Anadarko Petroleum Corp.'s South Texas oil-and-gas assets, according to people familiar with the matter.

While the exact contours of the deal aren't yet clear, Blackstone and the private-equity firm's credit arm, GSO Capital Partners, would likely fund or participate in the purchase, the people said. The deal is expected to value the Anadarko assets at between $3 billion and $3.5 billion, they added.

A deal could be announced in the next few weeks, the people said.

As always, the talks could fall apart. In recent weeks, Sanchez had also been in talks with Apollo Global Management LLC and energy-focused private-equity firm EIG Global Energy Partners to participate in the bid, some of the people said. While Blackstone and GSO are currently Sanchez's preferred partners, other backers could supplant them if the alliance were to break down, one of the people said.

Write to Matt Jarzemsky at [e-mail] and Dana Mattioli at [e-mail]

(END) Dow Jones Newswires

October 27, 2016 15:34 ET (19:34 GMT)

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