Freeport-McMoRan to Sell Deepwater Gulf Assets to Anadarko for $2 Billion

By Josh Beckerman 

Mining giant Freeport-McMoRan Inc., which has been selling assets to reduce debt, said Anadarko Petroleum Corp. will buy its deepwater Gulf of Mexico properties for $2 billion.

Freeport has been under pressure to streamline since August 2015, when activist investor Carl Icahn disclosed a stake in the company. Its cost-cutting moves have included suspending its dividend.

Freeport said last year that it would evaluate alternative courses for its oil-and-gas business. In May, it withdrew a plan to take the oil-and-gas operations public. On Monday, Freeport said the deal reflects its commitment to debt reduction and to its copper business.

Meanwhile, Anadarko said the deal, expected to close later this year, will immediately add to earnings and expand its infrastructure throughout the Gulf of Mexico.

The deal includes up to $150 million of contingent payments.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

September 12, 2016 17:02 ET (21:02 GMT)

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