Anadarko is cheap despite Tronox uncertainty, Deutsche Bank believes


Anadarko Petroleum (APC +0.3%) has lagged other U.S. E&P names thanks to the massive potential damages linked to its Kerr-McGee purchase, but APC shares now trade at a 25%-45% discount to peers - cheap, no matter how you slice the Tronox liabilities - Deutsche Bank believes.

While some of the perceived value gap is driven by Tronox uncertainty, the firm notes even a Tronox liability at the very high end of a potential range - say, $20B - would value APC's onshore business at a still discounted multiple of 4.9x its estimated 2015 EV/EBITDA; the asset value is "clearly apparent."

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Comments (1)
  • Mike Walker
    , contributor
    Comments (396) | Send Message
     
    Shhh... I'm still re-accumulating to get back to my 2013 position level on this one
    25 Mar 2014, 03:34 PM Reply Like
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