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."

From other sites
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
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs