Anadarko Petroleum CorporationNYSE
Thu, Sep. 29, 11:57 AM
- Anadarko Petroleum (APC +2.5%) is higher as Freeport McMoRan (FCX -0.4%) pushes ahead with plans for a $2B asset sale to the company even after failing to win creditor support for the deal.
- FCX says it will merge with a subsidiary to get around the obstacle thrown up by its bondholders, even as creditors say the move violates their agreement with the company.
- FCX initially sought consent from creditors to change the existing agreement but says the offer expired yesterday evening after creditors had failed to give their approval.
Thu, Sep. 29, 8:54 AM
- Mozambique's energy minister has been dismissed without explanation, creating uncertainty around several important natural gas deals with the potential to transform the country into a middle-income state.
- Negotiations with Eni (NYSE:E) and Anadarko Petroleum (NYSE:APC) have dragged on for years but several signs of significant progress had occurred in recent months; ExxonMobil (NYSE:XOM) reportedly is close to buying into Eni's Mozambique's assets.
- Mozambique discovered offshore gas reserves six years ago amounting to ~85T cf, one of the world's largest finds of the past decade.
Tue, Sep. 27, 4:41 PM
- Freeport McMoRan's (NYSE:FCX) bondholders may be objecting to the company's $2B sale of deepwater Gulf of Mexico properties to Anadarko Petroleum (NYSE:APC), Bloomberg reports.
- Some of the creditors holding $2.3B of bonds want more money and greater protection for allowing the asset sale, which requires changes to FCX’s existing agreement with the lenders, according to the report.
- FCX, which wants to keep the debt on its own balance sheet even as the assets shift to the buyer, is seeking majority approval from five sets of bondholders to complete the sale.
- The bondholders want a bigger consent fee, a higher interest rate on the debt and additional protective covenants to approve the sale, according to a creditor letter obtained by Bloomberg; without it, they want the debt to move with the assets to APC, which has a stronger credit profile than FCX.
Tue, Sep. 13, 7:08 PM
- On a day of widespread carnage among oil and gas shares, Anadarko Petroleum (NYSE:APC) fell a mere 0.3% while Freeport McMoRan (NYSE:FCX) sank 8.4% in today's trade after its $2B sale of Gulf of Mexico deepwater exploration assets to APC.
- Morgan Stanley maintains its Overweight rating on APC and hikes its price target to $81 from $74, highlighting the deal's asset quality, upside potential from growing operated infrastructure, and the inexpensive valuation paid that supports long-term guidance of 10%-12% oil production compound annual growth rate to 2020.
- Johnson Rice upgrades APC to Buy, seeing the deal as "a contrarian move that captures a large chunk of value,” with near-term cash flow generated by the acquisition and the equity offering delevering the company.
- UBS says the deal should help APC grow oil volumes at better than 10%/year vs. prior investor concerns of little or no oil growth, and the combination of equity and free cash flow reduces net debt/EBITDX to 2.6x from 3.2x, which should offset any concern about increased exposure to the deepwater Gulf of Mexico, which climbs to 19% of overall production from 10%.
Tue, Sep. 13, 3:19 PM
- Freeport-McMoRan (FCX -8.8%) is sharply lower after its $2B sale of Gulf of Mexico deepwater exploration assets to Anadarko Petroleum (APC -0.5%) is called "cheap" by some analysts.
- Deutsche Bank maintains its Hold rating on FCX but says it had valued the related properties at $2.9B, and that while the deal will help repair FCX's balance sheet and simplify the business to focus on copper, it is also "reducing portfolio optionality."
- Cowen analysts are more upbeat, seeing 50% upside to their $15 price target on FCX, saying “investors were skeptical a Gulf of Mexico deal could get done and view this transaction as the long-awaited closure of a major overhang for FCX shares."
- The sale wins the approval of Carl Icahn, who owns a 7.8% stake in FCX and has two representatives on the board, saying the sale shows that the company "is making good on its stated goal of deleveraging and is on track to cut its net debt by half, from year-end 2015 through the end of next year, at current copper prices."
Mon, Sep. 12, 4:38 PM
- Anadarko Petroleum (NYSE:APC) -4.4% AH after agreeing to acquire Freeport McMoRan's (NYSE:FCX) deepwater Gulf of Mexico assets for $2B; FCX +2.4% AH.
- APC says the deal doubles its ownership in the Gulf of Mexico's Lucius development to 49%, adds ~80K net boe/day to its portfolio, expands its operated infrastructure throughout the Gulf of Mexico, and would generate an estimated $3B of incremental Gulf-related free cash flow over the next five years at current strip prices.
- APC also says it expects to raise its 2016 full-year capital guidance, not including the acquisition, to $2.8-$3B, primarily reflecting increased activity in the Delaware and DJ basins.
- FCX, which withdrew a plan to take its oil and gas operations public in May, says the deal brings its total 2016 asset sale transactions to more than $6B.
- To help fund the deal, APC says it plans a public offering of 35.25M common shares, with an underwriters option to purchase up to 5.287M additional shares.
Wed, Aug. 31, 8:52 AM
- Crude oil prices are slightly lower, unaffected by disruptions caused by a tropical storm in the eastern Gulf of Mexico that is expected to hit Florida later this week and bypass the bulk of oil production near Louisiana and Texas.
- U.S. authorities said ~22%, or ~353 boe/day, of production in U.S. regulated areas of the Gulf had been shut as of late yesterday because of the storm threat.
- Personnel had been evacuated from nine production platforms out of 750 manned platforms in the Gulf; one rig evacuation was reported, and seven dynamically positioned rigs have moved off location.
- Operators that have pulled workers off platforms in the area include BP, Royal Dutch Shell (RDS.A, RDS.B), Anadarko Petroleum (NYSE:APC), BHP Billiton (NYSE:BHP) and Hess (NYSE:HES).
Mon, Aug. 29, 2:29 PM
- Oil and natural gas explorers escape a vote in Colorado that could have severely limited drilling in the state, as two measures that would have allowed local communities to ban hydraulic fracturing fail to garner enough support for the November ballot.
- A proposal that would have restricted drilling near homes fell ~21K valid signatures short of the total needed to qualify for a ballot vote, and a measure allowing local governments to ban fracking also failed to attract enough signatures, according to the Colorado Secretary of State's office.
- Colorado's top producers include Anadarko Petroleum (APC +1.3%), Encana (ECA +0.4%), Noble Energy (NBL +1.4%), PDC Energy (PDCE +1.6%), Whiting Petroleum (WLL +1.9%), Bill Barrett (BBG +5.3%), Carrizo Oil and Gas (CRZO +2.2%) and Synergy Resources (SYRG +5.2%).
Fri, Aug. 26, 10:21 AM
- The initiative pushed by anti-fracking activists in Colorado that could virtually eliminate hydraulic fracturing in the state is "extremely unlikely" to make it to the November ballot needed to become law, Wells Fargo analysts say.
- The proposal would move the distance for a hydraulic fracturing operation from 500 ft. or more to a minimum of 2,500 ft. or more from an "area of special concern" such as occupied housing, drinking water sources, sports fields and parks.
- The stock market already is assuming that the proposal will fail, the firm says, based on recent gains in share prices of companies that operate in the Niobrara/DJ Basin, including PDC Energy (PDCE +0.2%), Anadarko Petroleum (APC +1.3%), Bill Barrett (BBG +3.5%) and Whiting Petroleum (WLL +4.4%).
Mon, Aug. 8, 9:53 PM
- Environmental groups in Colorado say they have collected enough signatures to add proposed anti-fracking initiatives to the November election ballot, pending final validation by the Secretary of State's office.
- One of the initiatives would strengthen the state's setback rules, requiring new oil and gas development facilities to be located at least 2,500 ft. from occupied structures or areas such as parks, while the second would transfer regulatory control of new oil and gas development to local governments.
- Anadarko Petroleum (NYSE:APC), Noble Energy (NYSE:NBL) and Whiting Petroleum (NYSE:WLL) hold the greatest net acreage in Colorado's DJ Basin; other companies with DJ exposure include Synergy Resources (NYSEMKT:SYRG), PDC Energy (NASDAQ:PDCE), Bonanza Creek Energy (NYSE:BCEI), Bill Barrett (NYSE:BBG), and Carrizo Oil and Gas (NASDAQ:CRZO).
Mon, Aug. 8, 11:57 AM
- SM Energy’s (SM +7.2%) $980M purchase of drilling rights in the Permian Basin shows that producers are willing to pay a premium for access to one of the few spots where oil exploration still turns a profit, Bloomberg reports.
- SM will pay the equivalent of $39.5K/acre for drilling rights across 24,783 acres in the Permian Basin, will ahead of the $25K-$35K that acreage in the Permian’s Midland Basin section had been fetching as recently as May and almost doubling SM's holdings in the region.
- Other Permian producers also are trading higher, including: PXD +2.2%, CXO +1.8%, XEC +2.1%, CWEI +6.1%, APA +3.8%, FANG +2.1%, PE +1.2%, QEP +3.6%, RSPP +2.4%, APC +2.6%, DVN +3.7%, MTDR +2.3%.
Tue, Aug. 2, 5:37 PM
Thu, Jul. 28, 8:10 AM
- Exxon Mobil (NYSE:XOM) is in advanced negotiations with Eni (NYSE:E) over acquiring a minority stake in natural gas discoveries off Mozambique, Bloomberg reports.
- XOM also is in talks with Anadarko Petroleum (NYSE:APC) over acquiring a stake in the adjacent Area 1 in Mozambique’s offshore Rovuma Basin, according to the report.
- Exxon is already focused on Mozambique after winning three exploration licenses in October for offshore blocks to the south of the APC and Eni discoveries, and it has a working interest in Statoil’s Block 2 in Tanzania, north of the Rovuma Basin.
Wed, Jul. 27, 11:59 AM
- Anadarko Petroleum (APC -1.8%) is maintained with a Buy rating with a $68 price target, raised from $67, at Goldman Sachs, after APC reported a smaller than expected Q2 loss aided by cost cuts.
- “Street concerns regarding consolidation, weak balance sheet, ability to sell assets, production mix, Permian impact, exploration potential and timing of development growth are overdone," Goldman's Paul Singer writes.
- APC's Permian and Gulf of Mexico update were positive, Singer says, with the company raising its 2016 production guidance by 1%, driven by higher than expected production growth in the two regions.
- APC also indicated that it had sold assets worth $2.5B through H1, with potential for further sales of $1B-plus, inspiring confidence that more manageable leverage "can open door for APC shares to trade at [a] greater multiple."
Tue, Jul. 26, 5:49 PM
- Anadarko Petroleum (NYSE:APC) is flat AH after posting a narrower than expected Q2 loss after cutting costs to cope with the oil industry downturn.
- APC says its Q2 costs fell 11.8% Y/Y, and has closed $2.5B in asset sales YTD with a target of $3.5B for the full year; the company also laid off 1,000 workers in March and previously cut its dividend.
- APC raises the mid-point of its FY 2016 sales volume forecast by 2M boe from a prior estimate of 282M-286M boe after adjusting for divestitures, citing record sales volumes from its Lucius and Caesar/Tonga fields in the Gulf of Mexico, as well as the improving well performance in the Delaware and DJ basins.
- "Should the commodity-price outlook continue to improve, we will evaluate redeploying some of the additional cash generated via operations and asset sales toward our highest-quality U.S. onshore opportunities," CEO Al Walker says.
Tue, Jul. 26, 4:09 PM