Anadarko Petroleum CorporationNYSE
Thu, Oct. 27, 3:37 PM
- Sanchez Energy (SN +2.7%) is in talks to partner with Blackstone (BX +1%) on a deal to purchase Anadarko Petroleum's (APC +1.5%) south Texas oil and gas assets for $3B-$3.5B, WSJ reports.
- Blackstone and the P-E firm’s GSO Capital Partners credit arm likely would fund or participate in the purchase, although the details are not known, according to the report.
- Sanchez reportedly also has been in talks with Apollo Global Management (APO +1.5%) and energy-focused P-E firm EIG Global Energy Partners to participate in the bid.
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%.
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.
Dec. 21, 2015, 3:09 PM
- Anadarko Petroleum (APC +0.9%) spikes more than 3% before fading, following chatter that Sinopec (SNP -1.2%) is considering a takeover bid for the E&P company.
- Stifel analyst Michael Scialla tells Benzinga the rumor fits into the story around the China gas sector and the understood benefits of APC's inventory and Permian exposure.
- Oppenheimer's Fadel Gheit says a SNP deal for APC has a less than 50% probability, but that APC is believed to be a takeover target by other analysts.
Nov. 11, 2015, 12:21 PM
- Investors are dumping Apache (APA -6.6%) shares after Anadarko Petroleum (APC -4.1%) withdrew its takeover bid for the company, but Oppenheimer analyst Chris Kotowski says the two companies were “not a good fit.”
- "Many investors believe APC’s pre-emptive action was in self defense to make it more difficult for a potential buyer to make a bid... [but] we do not think the combination of APC and APA would be a good fit that would create value for their shareholders, and our view was reflected by the market reaction," Kotowski writes.
- RBC analyst Leo Mariani says APA is undervalued and has a strong enough balance sheet to wait out the current weakness in oil prices.
Nov. 11, 2015, 8:40 AM
- Anadarko Petroleum (NYSE:APC) issues a statement confirming it recently sent Apache (NYSE:APA) a non-binding offer to acquire the company.
- APC says its attempts to explore the merits of a potential deal were "summarily rejected and no discussions of substance occurred... based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn."
- APC +3.2% premarket after falling 6.6% yesterday as word of the offer leaked; APA -6.8% premarket.
Nov. 10, 2015, 12:42 PM
- Anadarko Petroleum (APC -6%) plunges following a Bloomberg report that it approached Apache (APA -2.9%) about a possible takeover.
- APA reportedly rejected an initial proposal from APC and is working with Goldman Sachs to advise on its options; it is not clear whether talks will resume, other bidders may emerge, or APC will walk away.
- Bloomberg wrote over the weekend that APA had rejected an unsolicited takeover approach from an unidentified party.
Jul. 16, 2015, 2:57 PM
- Global oil majors have $150B of firepower than can be used for M&A and have the ability to defer another $325B in capex on marginal projects; with so much cash available for potential deals and up to 15M bbl/day of production potentially available for purchase, Goldman Sachs analyst Ruth Brooker sees a pickup in M&A activity in the oil and gas space coming soon.
- The firm thinks shale production has the potential to double by 2025, and Brooker argues majors likely will take the current opportunity to increase their exposure to U.S. shale at historically low prices.
- Goldman sees seven companies as most likely to draw buyout attention from the majors: EOG, PXD, CLR, COG, NBL, APC, RRC.
Apr. 8, 2015, 7:30 PM
- Analysts say Shell's (RDS.A, RDS.B) move to buy BG Group is telling potential acquirers that one of the biggest players is now confident enough to make a big play, and that the worst may be over in the big slide in oil and gas prices.
- The deal also may be the starting gun for a wave of M&A activity that oil industry observers have been predicting since crude prices started to slump in June.
- For starters, BG's U.S. shale assets likely will become candidates for divestiture after the Shell deal closes; in buying BG, Shell has made the choice to double-down on global liquefied natural gas and de-emphasize U.S. shale.
- Among the biggest players, Exxon (NYSE:XOM) and BP could contemplate deals - perhaps even with each other, as has been speculated, since BP ranks among the cheapest major producers relative to estimated profit.
- BG itself could whet the appetite of XOM's Rex Tillerson, who recently said there was "no limitation" to what he might buy - but he will be especially selective after getting burned by 2010's XTO purchase.
- Companies with prime acreage in oil-rich shale fields in Texas, North Dakota and Colorado have become a lot cheaper in recent months; Anadarko (NYSE:APC), Cabot Oil & Gas (NYSE:COG), Pioneer Natural Resources (NYSE:PXD), Occidental (NYSE:OXY), Continental Resources (NYSE:CLR), Concho Resources (NYSE:CXO) and Tullow Oil (OTCPK:TUWLF) are among those at topping analysts’ lists.
- Galp Energia (OTC:GLPEF) may draw interest from buyers because, like BG, it offers access to oil assets in Brazil.
Apr. 8, 2015, 7:59 AM
- Analysts at Jefferies now expect Royal Dutch Shell (RDS.A, RDS.B) to surpass Exxon Mobil (NYSE:XOM) as the world's largest publicly traded oil and gas producer by 2018, with output of 4.2M boe/day, following Shell's $69.6B deal to buy BG Group.
- But XOM has long been rumored as a potential bidder for BG, and Financial Times points out that it now has both the motive and the opportunity, raising the possibility that it could try to outbid Shell for BG.
- Like Shell, XOM is struggling to grow and will find it easier to raise production by dealmaking than by drilling; XOM’s output was ~4.3M boe/day in 2001 and 4M last year.
- With its greater size, low debt and AAA credit rating, XOM could muster a larger cash component in any offer than Shell’s 28% of its total offer of ₤13.50/share; however, hostile deals are very rare in the oil and gas industry.
- Whether or not BG is the perfect fit for XOM, Paul Sankey of Wolfe Research has suggested other midsized E&P specialists could prove tempting, including Hess (NYSE:HES), Continental Resources (NYSE:CLR), Devon Energy (NYSE:DVN), Apache (NYSE:APA) and Anadarko Petroleum (NYSE:APC).
Feb. 12, 2015, 2:14 PM
- If Exxon Mobil (XOM +1.6%) decides to go hunting for struggling energy peers with shrinking cash flow - as it did five years ago when it acquired XTO Resources for $25B, during an energy rout worse than today's - it would need to go big or not go at all in order to meaningfully boost its oil and gas reserves, WSJ writes as it discusses BP (BP +2.1%) as a potential takeover target.
- BP “is the obvious fit says Wolfe Research's Paul Sankey; buying BP, which is still dealing with the fallout of the 2010 Gulf of Mexico oil spill, “would close out a damaged brand at a terrific price” and bolster XOM’s capacity to find new sources of oil and gas, he says.
- Other potentially attractive targets singled out by analysts include a smaller tier of companies such as Anadarko (APC +1.9%) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY), which have discovered huge deposits of oil and gas but may lack the cash flow to develop them quickly.
Nov. 17, 2014, 3:59 PM
- In the wake of Halliburton's (NYSE:HAL) $34.6B offer for Baker Hughes (NYSE:BHI), it appears the next hot sector for M&A action is energy: More consolidation is likely, given the weakness for stocks in the oilfield services subsector, low interest rates, and as a drop in demand for oil increases cutthroat pricing competition.
- Speculation is running rampant as investors try to figure out who is next in an industry that is sure to undergo some more consolidation; some names identified as possible candidates include Kodiak Oil and Gas (NYSE:KOG), Marathon Oil (NYSE:MRO), Northern Oil and Gas (NYSEMKT:NOG), Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD).
- GE could go after National Oilwell Varco (NYSE:NOV) to show it is serious about the energy industry after last year’s purchase of pumpmaker Lufkin, Royal Bank of Canada says, and Oppenheimer says even BP could be an acquisition candidate.
- But Morgan Stanley does not see offshore drillers getting in on the action, as larger players like Diamond Offshore (NYSE:DO), Transocean (NYSE:RIG) and Seadrill (NYSE:SDRL) are still addressing dividend concerns while smaller companies such as Atwood Oceanics (NYSE:ATW) and Pacific Drilling (NYSE:PACD) still trade close to replacement value.
Sep. 8, 2014, 6:43 PM
- The energy sector has seen little M&A activity despite a growth shortfall and cheap borrowing rates, but UBS analysts think a focus on incremental returns may lead to less exploration and more deals as resource prices on the market have fallen.
- The firm figures four large-cap E&P companies - Anadarko Petroleum (NYSE:APC), EOG Resources (NYSE:EOG), Marathon Oil (NYSE:MRO) and Pioneer Natural Resources (NYSE:PXD) - could prove tantalizing acquisition targets, but the buyer likely would need very deep pockets.
- In the case of EOG, UBS says the company's strong position in the three biggest tight oil plays - the Eagle Ford, Bakken and Permian - make it a perfect fit for an integrated major looking to expand in those areas.
Feb. 18, 2014, 3:52 AM
- Anadarko Petroleum (APC) has agreed to sell its unit in China to Hong Kong-listed Brightoil (BRTPF) for $1.075B.
- The subsidiary owns Anadarko's holdings in two offshore oil fields in northeastern China's Bohai Bay. The U.S. company's share of output in the reserves was 11,000 barrels a day.
- Brightoil has reportedly also held talks with Newfield Exploration about acquiring its China operations. (PR)
Dec. 18, 2013, 6:26 PM
- 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.
Aug. 26, 2013, 7:04 AM
- As flagged, Anadarko (APC) has agreed to sell a 10% stake in an offshore Mozambique gas field to India's Oil & Natural Gas Corp. for $2.64B. Anadarko will remain the operator of the field, called Area 1, with a working interest of 26.5%.
- Anadarko expects to invest the proceeds from the sale in its North American assets, such as the Wattenberg field, Eagleford Shale, and the Permian and Powder River basins, as well as in the Gulf of Mexico.
- The company also hints that it will return some of the money to shareholders. (PR)