Anadarko Petroleum Corporation
 (APC)

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  • Fri, Feb. 12, 6:56 AM
    • Rio Tinto (NYSE:RIO) are +6.1% in London, back above 1,800p after falling yesterday on weak earnings and after scrapping its dividend (more here).
    • Citi downgraded RIO to Neutral with a 1,850 PT following earnings. But hedge fund Segantii Capital Management bought stakes in RIO, Anadarko (NYSE:APC), and the SPDR S&P Oil and Gas Exploration & Production ETF (NYSEARCA:XOP) according to a recent filing.
    • In a note this morning, Berstein said it believes RIO will use the cash it is saving by halving its dividend and slashing capex to grow its copper exposure.
    • Firm says RIO should stop building and start buying copper rivals, noting that the cost of buying some of the largest copper miners would be 40-80% less its OT UG expansion.
    • “The key question is how: by building new projects or acquiring existing assets? To us, the decision should be a no-brainer.”
    • Note: On yesterday's earnings call, CFO Chris Lynch said, “We have a list of assets that we would be very keen to own if they were to become free,” adding: ‘‘We are very much interested in good-quality assets should they come on the market.”
    | Fri, Feb. 12, 6:56 AM | 6 Comments
  • Thu, Feb. 11, 2:44 PM
    • More dividend cuts and equity raises are coming for oil and gas stocks such as Apache (APA -4.3%), Devon Energy (DVN -5.1%), Encana (ECA -5.7%), Anadarko Petroleum (APC -6.2%) and Marathon Oil (MRO -5.1%), as management teams have become more willing to take stronger steps to strength balance sheets, Barclays believes.
    • The firm views 4x debt to pre-interest cash flow as a warning sign that companies may have leverage concerns, at which roughly half of its energy coverage universe remains overlevered.
    • Barclays thinks Canadian Natural Resource (CNQ -4.4%) likely will maintain its dividend, while Occidental Petroleum (OXY -0.8%) has the financial strength to maintain or even increase the dividend.
    • The firm sees leveraged companies such as DVN, ECA and Range Resources (RRC -3%), and companies with large deficits including DVN and APC as most likely to consider raising equity; it also thinks MRO, WPX Energy (WPX -7.8%), Southwestern Energy (SWN -7.7%), Continental Resources (CLR +0.2%), Noble Energy (NBL -2%) and Newfield Exploration (NFX -1.2%) could issue equity; APA, CNQ, OXY, EOG Resources (EOG -0.9%) and Pioneer Natural Resources (PXD -0.3%) are considered unlikely to issue equity this year.
    | Thu, Feb. 11, 2:44 PM | 7 Comments
  • Tue, Feb. 9, 3:48 PM
    • Anadarko Petroleum (APC -5.8%) plunges 6% after announcing an 81% dividend cut, as shares resume trading following a halt; shares already had been ~3.5% lower.
    • APC says the cut provides ~$450M of additional cash on an annualized basis to enhance its operations and financial flexibility.
    • APC had dropped strong hints about a dividend cut last week during its earnings conference call.
    | Tue, Feb. 9, 3:48 PM | 2 Comments
  • Tue, Feb. 2, 11:30 AM
    • Anadarko Petroleum (NYSE:APC) says it may cut its dividend because plunging oil prices have pushed its yield too high.
    • "If we look at the yield associated with our common stock at 3%, that's historically high for us," CEO Al Walker said during this morning's earnings conference calls. "So we look forward to discussing that with our board."
    • "There are other things we could do with that cash in the current environment," says CFO Bob Gwin, adding that he does not expect the entire dividend to be eliminated.
    • The dividend costs APC ~$550M/year.
    • APC +3.7%.
    | Tue, Feb. 2, 11:30 AM | 5 Comments
  • Thu, Jan. 21, 3:49 PM
    • Crude oil futures settled more than 4% higher on the back of perceived oversold conditions, despite a higher than expected inventory build; March WTI jumped 4.2% to settle at $29.53/bbl after trading as high as $30.25, while Brent surged 4.9% to $29.25.
    • Crude prices were supported by the inventory increase in this morning's EIA report, which was less than the API’s report released on Wednesday, says Phil Flynn, senior market analyst at Price Futures Group; also, reports of Libyan oil tanks on fire eased speculation that Libya would be exporting more oil soon.
    • Also supportive for prices, oil production in the lower 48 states edged lower for the first time in seven weeks, “which is at least ‘less bearish’ for the extremely oversupplied global oil market,” says Tyler Richey of The 7:00’s Report.
    • The energy sector is bouncing after hitting a multiyear low yesterday: XOM +1.4%, CVX +2.7%, RDS.A +3.8%, BP +3.7%, TOT +2.3%, STO +4.5%, COP +6.2%, MRO +12.2%, APC +10.3%, OXY +2.1%, EOG +6.4%, PXD +2.7%, APA +8.2%, HES +7%, KMI +15.5%, EPD +3.3%, ETP +6.8%.
    • ETFs: UNG, USO, OIL, XLE, UGAZ, UCO, DGAZ, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, BOIL, GAZ, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, KOLD, BGR, USL, XES, IYE, IEO, UNL, IEZ, DNO, FENY, PXE, PXI, FIF, PXJ, OLO, SZO, NDP, RYE, DCNG, FXN, OLEM, DDG
    | Thu, Jan. 21, 3:49 PM | 116 Comments
  • Tue, Jan. 19, 2:43 PM
    • Anadarko Petroleum (APC -4.3%) says it achieved first oil at its Heidelberg field, the company's second of a pair of truss spar developments in the deepwater Gulf of Mexico.
    • Lucius, the spar’s sister development, began production last January; the spars have design capacities of 80K bbl/day and 80M cf/day.
    • APC operates Heidelberg and holds a 31.5% interest; partners include Freeport McMoRan (FCX -8.2%) and Eni (E -0.5%), each with a 12.5% stake; Statoil (STO -1.1%), with 12%, and Exxon Mobil (XOM -2.5%) and Cobalt Energy (CIE -10.4%), with 9.375% each.
    | Tue, Jan. 19, 2:43 PM | 15 Comments
  • Thu, Jan. 7, 3:24 PM
    • Anadarko Petroleum (APC -8.6%) is downgraded to Hold from Buy with a $60 price target, lowered from $85, at Deutsche Bank, which says the stock is "not particularly defensive" given its 3.3x leverage and 51% net debt-cap at year-end 2016 and the company is not well leveraged to sector-wide recovery.
    • Deutsche Bank argues that APC is "not particularly inexpensive" at a 22% discount to its net asset value and 7.4x 2017 EV/DACF vs. 31% and 7.4x for the group, respectively, so investors can find greater upside elsewhere.
    • The firm earlier upgraded (I, II) Noble Energy and Pioneer Natural Resources as defensive plays with under-appreciated balance sheets.
    | Thu, Jan. 7, 3:24 PM | 1 Comment
  • Tue, Jan. 5, 2:47 PM
    • An eventual upturn in crude oil prices should turn the tide for the E&P sector In 2016, Citi analyst Robert Morris says as he upgrades Anadarko Petroleum (APC -1%), Canadian Natural Resources (CNQ +1%), EOG Resources (EOG +0.8%) and Cimarex Energy (XEC +1.4%) to Buy from Neutral and ups Oasis Petroleum (OAS -3.3%) to Neutral from Sell.
    • For the first time in more than a decade, the per share debt-adjusted growth metrics within the E&P sector showed no correlation to the share price performance in 2015, according to Morris; without a further collapse in commodity prices, he sees debt-adjusted growth metrics, along with key debt metrics and the ability to increase production by spending within cash flow, driving relative E&P share performance.
    • Morris maintains Buy ratings on Antero Resources (AR -2.4%), Apache (APA -2.3%), Concho Resources (CXO +1%), Memorial Resource Development (MRD -2%), Range Resources (RRC -0.4%) and Whiting Petroleum (WLL -7.1%), but downgrades Hess (HES -0.5%) to Neutral from Buy.
    | Tue, Jan. 5, 2:47 PM | 8 Comments
  • Dec. 7, 2015, 12:47 PM
    • Anadarko Petroleum (APC -5.8%) plans to make a final decision in H2 next year on how it will develop the vast gas discoveries it has made offshore Mozambique, CEO Al Walker tells Financial Times.
    • APC has discovered more than 75T cf of gas in the Rovuma Basin, while Eni (E -2.8%) has identified ~85T cf; combined, the resources have the potential to transform Mozambique into one of the world’s top producers of liquefied natural gas.
    • "By the end of the 2020s, as we approach 2030, Mozambique probably will be second only to Qatar in terms of providing lowest-cost LNG in the world," the CEO says.
    | Dec. 7, 2015, 12:47 PM | 1 Comment
  • Dec. 7, 2015, 10:35 AM
    • The energy sector (-4.5%) paces the opening decline, as WTI crude oil prices -4% at $38.35/bbl following a 2.7% slide on Friday after OPEC's failure to agree on a production target to reduce the oil glut.
    • Investors are betting on oil prices staying lower for even longer after OPEC's non-decision, pushing U.S. crude futures for delivery nearly 10 years away below $60/bbl, Reuters reports.
    • But the oil glut is set to continue as much because of the U.S. as of OPEC, as U.S. shale drillers have only trimmed their pumping a little, and rising oil flows from the Gulf of Mexico are propping up U.S. production; the overall output of U.S. crude fell just 0.2% in September, the most recent monthly federal data available, and is down less than 3%, to 9.3M bbl/day, from the peak in April.
    • Goldman Sachs says it expects oil prices to remain "lower for longer," with a risk that prices could fall as low as $20/bbl.
    • In early trading: XOM -2.9%, CVX -4.1%, BP -3.2%, RDS.A -4.2%, COP -4.6%, MPC -3.2%, MRO -7.4%, PSX -2.8%, HES -4.9%, APC -6.1%, OXY -3.1%, EOG -5.8%, DVN -9.3%, PXD -7.2%, APA -3.9%, CHK -8%, CLR -9.1%.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Dec. 7, 2015, 10:35 AM | 118 Comments
  • Dec. 4, 2015, 3:25 PM
    • U.S. crude oil settled 2.7% lower at $39.97 and Brent fell 1.9% to $43 after OPEC decided to roll over its policy of maintaining crude production in order to retain market share - a not unexpected outcome but one that offers no relief in sight for the oil industry's pain.
    • "OPEC not cutting is going to put more pressure on oil prices," and the pressure on companies’ spending will feed through into their investment in increasing their production, says Jefferies equity analyst Jason Gammel. “It’s not as though they’ll shut down existing production, but over time their output will decrease."
    • Don’t expect prices to stabilize until low prices force curtailments of pumping in the U.S., which will not happen until the end of next year, Goldman Sachs analyst Damien Courvalin.
    • Energy stocks (-0.7%) are the only S&P industry sector to decline, as the rest of the market has rebounded from yesterday's drop; some of the big oils - XOM +0.3%, CVX +0.6% - have inched higher, and refiners are mostly higher, but it's another down day for most: DVN -1.2%, CLR -5.9%, MRO -2.3%, HES -1%, COP -0.8%, EOG -0.7%, APC -2.4%, ETE -9.3%, ETP -3.5%, EPD -2.4%, WMB -6.9%.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Dec. 4, 2015, 3:25 PM | 150 Comments
  • Dec. 2, 2015, 3:21 PM
    | Dec. 2, 2015, 3:21 PM | 84 Comments
  • Nov. 13, 2015, 11:57 AM
    • Anadarko Petroleum (APC +2.5%) is upgraded to Focus Stock from Outperform with a $93 price target at Scotia Howard Weil, citing APC's penchant to divest and acquire at opportune times with one of the most capable managements in the business.
    • Weil expects APC's onshore portfolio may decline slightly, but only because of management's discretion not to grow in a challenging crude environment.
    • APC holds a resilient portfolio with the Wattenberg and Permian likely to encapsulate most of 2016's onshore budget, the firm adds.
    | Nov. 13, 2015, 11:57 AM
  • 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, 12:21 PM | 13 Comments
  • 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. 11, 2015, 8:40 AM | 11 Comments
  • 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.
    | Nov. 10, 2015, 12:42 PM | 5 Comments
Company Description
Anadarko Petroleum Corp is engaged in the exploration and production of oil and natural gas. The Company's three operating segments are: Oil and gas exploration and production, Midstream and Marketing.