Should You Buy Into Anadarko's Rally?

This article was originally published by TheStreet on April 7, 2014

By Sarfaraz A. Khan

NEW YORK (TheStreet) -- Shares of Anadarko Petroleum  (APC_) have rallied about 16% since last Thursday when news broke that the energy company reached a record $5.15 billion settlement in an environmental case.

The question now is whether the stock has more upside.

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 

Time to Buy Anadarko

This article was originally published by TheStreet and also appeared on Yahoo! Finance

NEW YORK (TheStreet) -- In December, Anadarko Petroleum's (APC_) Kerr-McGee unit was held liable for billions of dollars of environmental claims and liabilities related to the 2005 spinoff of Tronox (TROX_). According to the ruling, the energy firm could end up paying between $5.15 billion and $14.17 billion in environmental cleanup costs. The amount, even at its low end, is considerably higher than market's or Anadarko's expectations.

Following this revelation, Anadarko's shares plummeted and have still not fully recovered. Anadarko shares were at $79.32 at market close on New Year's Eve, and will likely remain under pressure in the coming months. This could translate into a buying opportunity for long-term investors because the company's outlook over the next several years is still positive. Moreover, in these challenging times, the business will likely increase its dividend and buyback expenditure to encourage shareholder confidence.

Tronox is a small-cap company that makes paint materials. Spun off from Kerr-McGee in 2005, Tronox became associated with Anadarko when the oil firm acquired Kerr-McGee in 2006. Tronox filed for bankruptcy in 2009 and emerged from it in early 2011.

Three Energy Firms to Watch This Earnings Season

From The Motley Fool
By Sarfaraz A. Khan
Research Assistant: G. Yousuf

Oil and gas Exploration and Production (E&P) companies Newfield Exploration (NYSE:NFX) and Hess Corporation are among those American energy firms which, amid pressure from shareholders, have been divesting from less lucrative international oil and gas ventures and investing in more profitable areas closer to their home market. I have already discussed about Hess Corporation’s strategic change and its implications in my previous article.

Here, I will discuss Newfield Exploration and two other E&P plays – the rapidly growing Oasis Petroleum (NYSE: OAS) and Wall Street favorite Anadarko Petroleum (NYSE: APC) – which can beat the market’s expectations in their upcoming earnings release.

Should You Add These Energy Firms To Your Portfolio?

From Seeking Alpha

By Sarfaraz A. Khan

According to Robin West of PFC Energy, Apache Corp (NYSE:APA), Anadarko Petroleum (NYSE:APC) and Occidental Petroleum (NYSE:OXY) are three energy firms who are on track to join the "million barrel club" - i.e. their daily production would touch at least one million barrels of oil equivalents (boepd), by 2018.

These relatively smaller exploration and production companies have typically attracted investors with their impressive growth numbers, unlike the oil majors such as ExxonMobil or Chevron who generate enormous cash flows keep their shareholders satisfied .... Read more