Anadarko Petroleum: Natural Gas Project Ahead Of Schedule

The Independence Hub deep-water natural gas project in the eastern Gulf of Mexico is expected to come online in July, ahead of most expectations, according to an analyst with Citigroup. Project operator Anadarko Petroleum Corp. (APC) should benefit as a result, given that it has 61% of the hub’s 1 billion cubic feet per day of natural gas throughput capacity, Gil Yang said in a note to clients.

Citigroup rates Anadarko shares a “buy” with a US$62 price target, representing upside of roughly 19%.

“As APC continues to build momentum by delivering both positive results and successfully completing projects in a timely manner we believe the market will begin to give APC credit for the embedded asset value,” the analyst said. “Bringing production online 30-60 days earlier than expected illustrates the company’s focus on delivering results.”

APC 1-yr chart: