Anadarko (APC) Stock Falls on $2 Billion Freeport Deal

NEW YORK (TheStreet) -- Shares of Anadarko Petroleum (APC) were retreating in pre-market trading on Tuesday after the oil and gas producer, based in The Woodlands, TX, said it would pay mining company Freeport-McMoRan (FCX) $2 billion for Gulf of Mexico assets.

The transaction will double Anadarko's current stake in the Lucius development to roughly 49%, and it will add about 80,000 net barrels of oil equivalent per day, according to a company statement late Monday. The deal is expected to generate about $3 billion of incremental free cash flow over the next five years.

Anadarko said it will fund the deal with a stock offering of more...