The worst may be over for Anadarko, Deutsche Bank says

|About: Anadarko Petroleum Corporation (APC)|By:, SA News Editor

Investors have been worried that Anadarko (APC +0.2%) might have more risks following the surprise ruling that it could be liable for as much as $14.2B related to its 2006 acquisition of Kerr-McGee, but Deutsche Bank says fears largely are unwarranted, with the worst case outcome now understood and risked by the market.

The long-term is mostly positive, the firm writes, as APC "likely comes out of Tronox in a more aggressive monetization/value realization mode with the market focused on NAV upside and improving operating trends in 2014."

APC trades at 5.4x 2014 EV/debt-adjusted cash flow vs. 6.4x for its average competitor; EOG Resources (EOG) trades at 7.1x, Noble Energy (NBL) at 8.7x times and Chesapeake Energy (CHK) at 7.3x.