Anadarko -12.5% AH as Kerr-McGee unit held liable in Tronox spinoff

Anadarko Petroleum (APC) -12.5% AH after a bankruptcy judge rules its Kerr-McGee unit acted improperly in the 2005 spinoff of Tronox (TROX) and should pay for environmental cleanup and to compensate people who claim damage from toxins.

The U.S. government had sought to recover $25B to clean ~2,700 polluted sites and compensate about ~8,100 tort claimants; a trust set up to pay plaintiffs calls for 88% of the judgment to go to trusts for cleanup, according to court papers, with the remainder going to toxin claimants.

The judge says APC and Kerr-McGee intended to “hinder and delay" when they transferred out and spun off oil and gas assets.

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Comments (10)
  • Mike Maher
    , contributor
    Comments (2863) | Send Message
    Hmmmm interesting move lower
    12 Dec 2013, 06:06 PM Reply Like
  • dutchduke
    , contributor
    Comments (58) | Send Message
    Street expected $4 to $5 a share knockoff. Current range is $10 to $28 a share loss, but, APC will definitely appeal folks. Also, now that the market has a tangbile range, there are buy-siders who will jump-in.
    Why? Because Mozambique is work at least $15/share, APC stakes in its midstream securities are also worth easily over $10/share and there is enough cash and other potential sales to cover this baby.


    Time to fight for the low end of the range and appeal. Don't be surprised when funds begin buying up tomorrow. NAV was $140, now its more likely $110-$115. Still money to be made and now we know the range of damage.


    12 Dec 2013, 08:54 PM Reply Like
  • Ajayyy
    , contributor
    Comments (325) | Send Message
    Experience from BP should show us that such negative incidents and news can weigh down on the stock for quite a long time.
    I think a lot more people will be getting out of it in upcoming weeks. I don't see why I should buy it today and not in a few weeks once a clear consensus is visible.
    12 Dec 2013, 10:16 PM Reply Like
  • dutchduke
    , contributor
    Comments (58) | Send Message
    BP's mistake was not going the route of XOM and appealing everything as long as possible. BP opened itself up to non-stop litigation and frivolous settlements and is paying dearly for it.


    APC is a much smaller and more controlled entity. They can appeal this ruling and will do so. Unlike BP, APC has had over $20 Billion or $40/share of value already eroded by Tronox concerns hanging over the stock during a period of great success (Mozambique discoveries worth $9 billion, Sonotrach settlement in Algeria worth over $4 billion, WGP security marker ignored over $4 billon, Shenandoah discovery ignored, etc.).
    12 Dec 2013, 11:01 PM Reply Like
  • maneker
    , contributor
    Comments (5) | Send Message
    What to do?
    12 Dec 2013, 10:32 PM Reply Like
  • Onpointlina
    , contributor
    Comments (9) | Send Message
    Sell..sell..sell.. Do not try to catch a falling knife..sell..sell..sell
    13 Dec 2013, 10:50 AM Reply Like
  • claycombmichael
    , contributor
    Comments (51) | Send Message
    $APC Blue Horse Shoe Loves This
    Blue Light Special, and I'm not talking K-Mart (SHLD)
    74.15 for Anadarko is a Bargain...
    13 Dec 2013, 07:37 AM Reply Like
  • User 353732
    , contributor
    Comments (5161) | Send Message
    The Regime is capable only of stealing and destroying wealth, not creating it, via regulatory, tax and legal terrorism.
    13 Dec 2013, 08:50 AM Reply Like
  • kgerickson
    , contributor
    Comments (468) | Send Message
    I'd give it a few days, but around 70 it looks interesting.
    13 Dec 2013, 08:53 AM Reply Like
  • ExplorerOne
    , contributor
    Comments (17) | Send Message
    You can wait for $70 and I am looking at $80 by the end of the day. Anadarko stole the wealth from Kerr-McGee stockholders by acquiring KMG near $67.75 a shares. Just look at APC's Wattenberg assets, Kerr-McGee was already working on the Niobrara play before anybody was thinking about shale gas and oil. Offshore, APC acquired the best tech team from Kerr-McGee. One of the team member just became CHK's CEO. Kerr-McGee COO did not go to APC but now is the COO of DVN. ................


    APC is so much undervalued and this law suit will take a long long time to settle. Kerr-McGee was fighting for the same for many many years.
    13 Dec 2013, 10:10 AM Reply Like
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