Anadarko is one of the world's largest independent oil and gas exploration and production companies. The company was founded in 1959 and has since grown into a global leader in the industry, with operations in over a dozen countries.
On August 13, 2018, Chris is employed by Anadarko as an oil field operator. The case receives world-wide press coverage about how an Anadarko employee killed his family and disposed of the bodies at an Anadarko oil site. Anadarko is in the process of selling and is involved in one of the largest bidding wars in U.S. history. This horrific event brings Anadarko negative world-wide news coverage and it’s not hard to imagine that the company would want the case closed and out of the press as quickly and quietly as possible.
June 12, 2009: Anadarko sued for misleading investors about Deepwater well site.
Anadarko Petroleum Corporation Securities Litigation Court: United States District Court for the Southern District of Texas Case Number: 1:10 CIV 4905 Class Period: June 12, 2009 through June 9, 2010 Case Leaders: John C. Browne, Jeremy P. Robinson
April 21, 2010: Anadarko ordered to pay $159.5 for Deepwater cleanup.
A federal judge orders Anadarko to pay a $159.5 million civil fine reflecting its stake in the Gulf of Mexico well where a 2010 blowout caused the largest U.S. offshore oil spill.
October 21, 2011: Anadarko settles Macondo Claims for $4B
Anadarko settles with BP for $4 billion & transfers its 25% stake in Mississippi Canyon Block 252 (Macondo Prospect) to BP & is indemnified by BP for all costs related to the oil spill, including those arising under the Oil Pollution Act of 1990
December 16, 2011: Anadarko settles for $26 million
The underpaid royalties in the Gulf of Mexico
April 3, 2014: Anadarko settles with the D.O.J. for $5.15B
Anadarko settles with the Department of Justice & Environmental Protection Agency to pay $5.15 billion to clean up environmental waste sites around the country. It is the largest environmental contamination settlement in American history.
April 11, 2014: Mozambique Project destroys villages in Africa
In one of the biggest projects ever attempted by a Western energy company, Anadarko destroys villages and relocate 3,000 villagers living in mud huts to install acres of air-conditioned housing, an airstrip and a port.
November 13, 2015: Anadarko's penalized $159.5 million
Louisiana Court charges Anadarko $159.5 million in Clean Water Act penalties, much lower than the $1 billion sought by the federal government. The fine is described as, “not a slap on the wrist; it’s a tongue kiss from the judge.”
January 25, 2017: OSHA cites Anadarko $70,711 in penalties
OSHA cites Anadarko $70,711 in proposed penalties for exposing employees to health & safety hazards in connection with the May 2017 explosion in Mead, Colorado.
A basement full of gas explodes at 6300 Twilight Ave, Firestone, CO killing Mark Martinez & Joey Irwin. Mark’s wife Erin, their son and Irwin’s sister were also injured in the explosion. The gas line, owned by Anadarko Petroleum, had been cut but not disconnected, allowing gas to leak into the basement
The Frederick-Firestone Fire Protection District found that a gas line attached to the well & severed near the foundation of the Martinez home leaked flammable gas into the soil. The explosion leads to Anadarko closing 3,000 wells across the state, an emergency inspection order from Gov. John Hickenlooper & to some new regulations across the state
May 4, 2017: Anadarko is Accused of Failure to Disclose
Anadarko hit with securities fraud lawsuit accusing them of failing to disclose safety risks ahead of a fatal home explosion in Colorado that has been linked to one of the company’s wells.
The lawsuit was filed in Houston federal court which said that Anadarko assured shareholders in a recent annual report that it was in “material compliance” with safety regulations, when allegedly inadequate maintenance and safety protocols left it at risk of an accident."
May 23, 2018: Anadarko reaches settlement Martinez & Irwin Families
Anadarko reaches settlement with families of victims and survivors of Firestone house explosion. Settlement is secret, but company says Mark Martinez and Joey Irwin were “innocent victims.”
February 19, 2020: Firefighters' Pension Fund vs. Anadarko
Former Anadarko engineer files class action lawsuit on behalf of the Georgia Firefighters Pension fund lawsuit from firefighters & other similarly situated investors, states fraudulently stated to investors that its holdings in the Shenandoah field, located in the Gulf about 170 miles off of the coast of Louisiana, would produce lucrative profits
Ga. Firefighters' Pension Fund v. Anadarko Petroleum Corp. Opinion CASE NO. 4:20-CV-0576
Politics, Public Image and Elections
October 14, 2014: Anadarko co-funds fracking project
Anadarko co-funds ‘Protect Colorado’ which has received $21M to defeat local fracking bans & moratoriums, & to improve the image of fracking.
December 17, 2015: Anadarko spends $2,920,000 on lobbing
Anadarko is an active player on the political scene and spends $2.92 million on lobbying. The top recipients of Anadarko’s contributions are Texas Republicans Joe Barton and Kevin Brady, both of whom have sided with dirty energy in 100% of votes tracked by Oil Change International’s Dirty Energy Money
December 2016: Andarko’s total lobbing expenditures, $2,170,000
December 2017: Anadarko’s total lobbing expenditures, $2,110,000
March 2018: Anadarko contributes $423,750
One lump sum to Protect Colorado, a political committee it helped form years ago
December 2018: Anadarko’s total lobbing expenditures, $1,980,000
Bidding War to Acquire Anadarko
September 2017: Occidental Proposes to Acquire Anadarko
CEO Vicki Hollub contacts Anadarko CEO Al Walker to propose to acquire Anadarko for between $60 and $70 per share in an all-stock deal. Occidental’s initial proposal did not detail financing nor mention approval from its board of directors.
October 2017: Occidental’s Board approves the offer
Vicki Hollub informs Al Walker that she has the approval of her board. Al said he will take the offer to his board of directors.
November 2017: Anadarko rejects the offer
Anadarko officially rejects the offer, saying it would not be a good “strategic and operational fit”.
January 2018: Occidental makes a revised proposal.
The revised proposal of $76 a share for Anadarko, half in cash and half in stock.
February 2018: Anadarko responds to Occidental’s offer.
Anadarko says that Occidental’s offer carries too much risk, which could only be mitigated with an all-cash offer. The high percentage of stock will require Occidental to hold at least two shareholder votes to get clearance. Discussions end for the rest of 2018.
February 2019: Chevron offers to acquire Anadarko.
Chevron CEO Mike Wirth approaches Anadarko’s CEO Al Walker with an offer to acquire Anadarko for 75% stock and 25% cash, for a total value of about $64 a share. Anadarko’s board agrees to open up the company’s books to Chevron.
March 22, 2019: Chevron and Anadarko are close to an agreement
They are close to signing an agreement when Occidental contacts Anadarko once again.
March 23, 2019: Occidental sends Anadarko an offer
The offer is $19 per share in cash and 0.8737 shares of its stock for a total of about $76 a share. The offer is based on a 75/25 stock-cash split.
March 24, 2019: Chevron increase its offer
Chevron offers $1 per share to $65 a share with the same 75/25 stock-cash split. Chevron also informs Anadarko it will drop its bid if a deal is not signed soon. Anadarko’s board weighs the two offers and authorizes Walker to enter into a non-disclosure agreement with Occidental that would kick off negotiations. Anadarko closes its books to Chevron.
March 25, 2019: Issues surface between Anadarko and Occidental
Anadarko asks for a ‘collar’ that could shield Occidental’s bid from fluctuations in its share price. Anadarko reiterated concerns about Occidental’s financing arrangements and ability to win two shareholder votes.
April 5, 2019: Anadarko checks in with Chevron to gauge interest.
April 8, 2019: Occidental sends Anadarko a revised offer.
The bid is lowered to $72 a share and the terms were changed to 40% cash and 60% stock, which removed one shareholder approval requirement. Occidental justifies the lower offer by citing the higher cash component and referring to findings in its due diligence into Anadarko. The new offer still has no collar. Walker takes the offer to Anadarko’s board, which rejects it.
April 9, 2019: Anadarko restarts talks with Chevron.
Al Walker negotiates a lower breakup fee of $1 billion with Chevron, leaving the door open for a rival bid. Anadarko also unsuccessfully askes Chevron to increase its offer.
April 10, 2019: Anadarko agrees to accept the offer from Chevron.
April 11, 2019: Occidental increases its offer
Vicki Hollub sends Al Walker another email, increasing Occidental’s offer back to $76 per share, with a 40/60 cash/stock split, including three board seats. Hollub also assures Walker she could get the deal done quickly. There was no reference in the email to financing, the collar, or the shareholder approval. Hollub offers to get the deal signed as soon as Sunday, April 14. Anadarko’s advisers said that negotiations with Occidental could take two more weeks, jeopardizing a bird in hand that Walker had with Chevron’s offer. Anadarko’s board voted to approve the deal with Chevron. On the same day, the board also approved higher compensation for Walker should the company change hands, according to an Anadarko filing with the Securities and Exchange Commission. Chevron and Anadarko signed their merger agreement that evening.
April 12, 2019: Chevron announces a deal valued at $65 per share.
April 24, 2019: Occidental announces a new $76-per-share bid
The per-share bid is payable half in cash and half in Occidental stock. It said its deal would not contain any financing condition but would require a vote by Occidental shareholders.
April 29, 2019: Anadarko negotiates with Occidental
Anadarko will negotiate with Occidental over its bid, after determining it can lead to a better deal than it had struck with Chevron.
April 30, 2019: Warren Buffett’s Berkshire
A deal is announced to bankroll Occidental’s bid for Anadarko.
May 5, 2019: Occidental Agreement to sell Anadarko’s African Assets
In the event of a deal, Occidental reaches an agreement to sell Anadarko’s African assets for $8.8 billion. Occidental also increased the cash component of its $38 billion bid to acquire Anadarko to 78% from 50%, removing a requirement for any deal to receive the approval of Occidental’s shareholders.
May 6, 2019: Occidental’s bid superior to Chevron’s
Anadarko’s board gives a four-day clock in its contract with Chevron that allows them to match the bid.
May 9, 2019: Chevron Withdrawal’s Bid
Chevron abandon’s its pursuit of Anadarko, citing price discipline.
August 8, 2019: Occidental acquires Anadarko.
Houston-based Occidental Petroleum Corp. (NYSE: OXY) announces that it has completed one of the highest-profile energy mega-deals in recent years in a transaction valued at $55 billion, including the assumption of Anadarko’s debt.
The deal is clinched as investor and Berkshire Hathaway CEOP Warren Buffett pledges $10 billion to finance the deal in exchange for 100,000 shares of cumulative perpetual preferred stock with a value of $100,000 per share.
Buffett & Bershire also received a warrant to purchase up to 80 million more shares at an exercise price of $62.50 a share.
The deal consists of 78 percent cash and 22 percent stock, with Anadarko shareholders receiving $59 in cash and 0.2934 shares of Occidental common stock per Anadarko share. common stock will no longer trade on the New York Stock Exchange after Aug. 8th, per the release.
Occidental inherits Anadarko’s significant legacy of environmental infractions to include the largest environmental contamination settlement in American history.
