Monday, March 10, 2014

Earnings Miss, Legal Woes: Is Anadarko Still Attractive?

This article was originally published by GuruFocus 

By Sarfaraz A. Khan and Gohar Yousuf
March 10, 2014
Oil and gas exploration company Anadarko Petroleum Corp. (APC) has been divesting its less productive assets as it refocuses on its lucrative operations in North America. Despite the asset sales, the company could consistently post increases in production on the back of some of its mega projects.

Recently, Western Gas Partners (WES) has revealed in its quarterly results that the company will acquire some of Anadarko’s natural gas assets for $375 million. This comes just a week after Anadarko agreed to sell its Chinese subsidiary for $1.075 billion to the Chinese energy company Brightoil Petroleum.

Increasing Production In Sight 

On other hand, despite the asset sales, Anadarko could deliver 5% to 7% growth in production, each year, by 2020. This could come on the back of the startup of its major project called Lucius, its onshore assets in Texas and Colorado as well as the Jubilee oilfield located at Ghana and Algeria’s El Merk project. The company’s Heidelberg field could also boost Anadarko’s production by 80,000 barrels per day from 2016.
Anadarko’s Lucius facility, located in the deep-water Gulf of Mexico, will come online in the next quarter. Anadarko has finished installation of the 80,000-barrels-of-oil-per-day spar, which is a massive 23,000-ton structure. The topsides of the project, which will sit atop the spar, will be towed to the location in the current … read full article at GuruFocus