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Bloomberg: Potential takeover target Anadarko is now $9B cheaper

  • Anadarko Petroleum's (APC) legal troubles likely haven't tarnished its allure for investors - instead, it has helped make APC $9B cheaper, and more appealing for a buyout, Bloomberg reports.
  • APC may be at the top of the list for multinational oil companies seeking purchases to turn around declining production, analysts say; a buyer willing to shell out $40B plus a premium would get a presence in fields where few big energy companies have exposure: the Niobrara formation in Colorado, Texas’ Eagle Ford shale basin, and offshore Africa.
  • APC would be an especially good fit for Exxon (XOM) or Chevron (CVX), Oppenheimer's Fadel Gheit says, although it's hard to see how a deal could be serious without a resolution to the Tronox lawsuit, which could leave APC on the hook for as much as $14B in environmental cleanup and health claims.
Comments (5)
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    http://bit.ly/1fnSHZg "all they did was open the books to the opposition." talk about "binary outcomes."
    18 Dec 2013, 06:40 PM Reply Like
  • GamCap LLC
    , contributor
    Comments (406) | Send Message
     
    2014 will be a monster year for M+A in the energy space. Most of the fat has been cut, co's are more focused on less basins. Still some quality acerage available but no more dust bin prices.
    18 Dec 2013, 06:42 PM Reply Like
  • charliezap
    , contributor
    Comments (1171) | Send Message
     
    ""it's hard to see how a deal could be serious without a resolution to the Tronox lawsuit""

     

    Agree. Look at Chevron's experience with the Texaco acquisition and the Ecuador lawsuit. Although I believe the lawsuit was fraudulent, it has been a pain in the neck for Chevron. No major company will take on Anadarko without Tronox being resolved.
    18 Dec 2013, 11:53 PM Reply Like
  • Zeus2012
    , contributor
    Comments (697) | Send Message
     
    Look at APC's own experience. The whole Tronox mess was inherited when Anadarko bought Kerr-Mcgee. Thus, who in their right mind would buy this company without resolution to the Tronox situation (or assume the worst outcome of $14 billion in damage which will arrive at a valuation which Anadarko will not accept).
    19 Dec 2013, 12:13 AM Reply Like
  • treyminator
    , contributor
    Comments (85) | Send Message
     
    There's no way CVX buys APC with a known adverse environmental judgment that has yet to have its damages determined. And remember this judgment is from a U.S. Court without fraud. CVX management could never explain a decision to buy APC if its estimation of the liability exposure turned out wrong. CVX bought Texaco believing that company had properly remediated the pollution in Ecaudor (which it did) AND Texaco had three general releases signed by Ecaudor government exonerating Texaco and any successors in interest (CVX) from any further responsibility. Despite all that CVX found itself spending millions litigating and is still fightimg fraudulent judgment. CVX management has other E &P companies available to buy (if it wants to do so). APA has a number of very good properties and already has relationship on Wheatstone and (possibly) Kitimat. Then there' EOG, CLR, PXD, and MRO.
    23 Dec 2013, 09:30 AM Reply Like
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