Expanding in Wyoming

Anadarko Petroleum Corporation has entered into an agreement to acquire Houston-based Howell Corporation in a cash merger in which Howell's common stockholders are to receive $20.75 per share and holders of Howell's $3.50 convertible preferred stock are to receive $76.15 per share.

The value of the acquisition is approximately $265 million, including Howell's bank debt, which is anticipated to be about $65 million at closing.

Anadarko expects to book about 50 million barrels of oil equivalent (BOE) of proved reserves at closing of the acquisition. Anadarko intends to fund the acquisition with available cash and credit facilities.

'The Howell acquisition is the cornerstone of a much larger effort to expand Anadarko's oil production in Wyoming,' said Anadarko President and CEO John Seitz.

'Howell's Salt Creek field is one of the largest remaining enhanced oil recovery opportunities in the Lower 48 states. We need to develop these resources for American consumers.'

'To do so, Anadarko plans to invest $200 million related to the Salt Creek field in Wyoming over the next four years and expects to add another 150 million barrels of reserves. Including the acquisition, that's a cumulative cost of less than $2.50 per barrel over the next four years,' Seitz added.

'This transaction will be accretive to earnings and cash flow at closing, and we expect to raise Anadarko's production targets to 203 million BOE in 2003 and 225 million BOE in 2004,' he concluded.