Fri, Nov. 13, 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.
Wed, Nov. 11, 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.
Wed, Nov. 11, 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 based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn."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.
Tue, Nov. 10, 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.
Thu, Oct. 29, 12:19 PM
- Anadarko Petroleum (APC +3.5%) is downgraded to Perform from Outperform at Oppenheimer, which foresees continued losses and cash flow deficits in a sub-$70 oil price environment.
- Analyst Fadel Gheit believes APC will continue to incur losses and cash flow deficits despite cost savings and efficiency improvements if oil prices remain below $70/bbl.
- Gheit says APC intentionally deferred the completion of nearly 200 wells through Q3 while planning to exit 2015 with 175-225 intentionally drilled uncompleted wells.
- Earlier: Anadarko posts huge but expected Q3 loss, shares down slightly (Oct. 27)
Wed, Oct. 28, 11:56 AM
- Anadarko Petroleum (APC +1.9%) Chairman, President and CEO Al Walker says the company will not try to expand beyond its existing oil fields until it becomes profitable to do so, which may not happen for a while as crude prices remain weak.
- "Growth will not be rewarded in this environment, and focusing on building and preserving value is more important at this time,” Walker tells investors in the morning's earnings conference call.
- "When we see value in pursuing growth, we’ll be prepared to accelerate activity,” the CEO said, adding that APC expects to keep capex in line with cash flow next year and will keep its focus on cutting costs, moderating decline rates at its oil fields, and drilling more efficiently.
- Walker also says drilling efficiencies have made APC's fields in west Texas competitive with its core Wattenberg field in Colorado, as the company has been able to save $1M per well after it improved how it designed its wellbores.
- Earlier: Anadarko posts huge but expected Q3 loss, shares down slightly
Thu, Oct. 8, 1:57 PM
- Oppenheimer energy analysts expect just one of the 15 pure-play E&P companies it covers to report positive EPS in Q3, just two to post positive EPS in Q4, and only two to finish in the green for 2016.
- Devon Energy (DVN +1.5%) is the only large E&P Oppenheimer expects to post a profit in Q3 and one of only two, along with Range Resources (RRC +1.5%), seen recording a profit in Q4.
- The firm sees Anadarko Petroleum (APC +2.4%), Hess (HES +4.1%) and Murphy Oil (MUR +3.5%) as the hardest hit stocks in Q3, forecasting respective EPS losses of $0.76, $0.91 and $1.13.
- Oppenheimer projects only ConocoPhillips (COP +1.2%) and Occidental Petroleum (OXY +1.9%) coming through with a profit for full-year 2016.
Mon, Aug. 24, 5:36 PM
Fri, Aug. 21, 12:34 PM
- "It's worse than you think," says longtime China bear Jim Chanos, having a day on CNBC. "Whatever you might think, it's worse."
- "People are beginning to realize the Chinese government is not omnipotent and omniscient ... like many of us, sometimes they don't have a clue."
- Chanos is short Solar City (SCTY -8.9%), saying it's really a subprime finance company, burning a lot of cash, and with negative EBITDA ... "this environment ... scary."
- He remains short some of the bigger names in the energy exploration and production space - DVN, MRO, OXY, APC.
- I don't like Shell (RDS.A -1.8%) or Chevron (CVX -1.5%), he says, and believes neither Chevron's dividend nor its buyback are safe.
- ETFs: FXI, ASHR, CAF, YINN, PGJ, GXC, FXP, YANG, CHN, PEK, MCHI, TDF, XPP, YAO, GCH, ASHS, YXI, CN, CHXF, FCA, CNXT, CHNA, KBA, JFC, AFTY, CHAU, XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
Wed, Aug. 19, 11:18 AM
- It's a broad decline for stocks this morning, with the S&P 500, DJIA, and Nasdaq all lower by 1% or more. Leading the way down are the energy names (XLE -2.5%) after an unexpected jump in oil inventories has sent the price of black gold down to new bear market lows at $41.30 per barrel.
- Chevron (CVX -2.9%), ConocoPhillips (COP -3.8%), EOG Resources (EOG -4.3%), Apache (APA -4.1%), Hess (HES -3.6%), Marathon Oil (MRO -5.5%), Noble Energy (NBL -3.1%), Anadarko (APC -3.6%).
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
Wed, Jul. 29, 2:49 PM
- Anadarko Petroleum (APC +4.8%) pushes to strong gains a day after reporting an unexpected Q2 profit by boosting oil production but keeping operating costs low.
- All of APC’s large projects are advancing, and "new discoveries, which will likely be unappreciated in this market, should add long-term value, all else being equal,” says Stifel analyst Michael Scialla.
- CEO Al Walker noted in today's earnings conference call that oil prices have fallen faster than service costs in places such as the Wattenberg field in Colorado, one of APC's major regions, but even an increase in crude prices might not bring the company back to into expansion mode because margins - not top-line revenue growth - are most important.
- Case in point: The cost to bring a well into production has fallen by ~45% this year in the Wattenberg, as drilling costs in the area have fallen below $1M per well, meaning APC will be able to drill 70 wells in the area this year vs. 35 last year.
- APC says the Delaware Basin in west Texas has offered up similar efficiencies, and the company plans to bring an eighth drilling rig into the region and is considering a ninth, as costs have come down by ~$1M per well.
Wed, Jul. 8, 3:49 PM
- The U.S. E&P industry is "between a rock and a hard place" entering earnings season, Deutsche Bank says, expecting continued headwinds for the group; while momentum has been building for moderate acceleration in activity levels in H2, macro concerns from China to Greece have weighed on crude prices and introduced an “additional layer of uncertainty.”
- Among the major integrated oils, the firm prefers EOG Resources (EOG -2.5%) and Anadarko Petroleum (APC -2.8%) into Q2 results but cuts its stock price target for Marathon Petroleum (MPC -2.6%) in half to $62.
- U.S. refiners, on the other hand, continue to defy fears of a collapse in margins, with demand strength and robust gasoline cracks again driving upside to earnings estimates; the firm sees 7% upside on average to current Q2 estimates for the group, with particular strength from Tesoro (TSO -1.2%), Valero (VLO -0.9%) and HollyFrontier (HFC -1.4%).
Thu, Jun. 4, 3:58 PM
- Western Gas Equity Partners (WGP -8.2%) tumbles following Anadarko Petroleum's (APC -0.5%) plans, announced late yesterday, for a secondary offering of 2M WGP common equity units.
- APC also said it will concurrently sell 6.5M of its tangible equity units at $50 a piece, with each consisting of a prepaid equity purchase contract and a senior amortizing note.
- WGP is an APC subsidiary that was formed to hold partnership interests in Western Gas Partners (WES -2.8%), another APC subsidiary that owns and operates pipeline and other midstream energy assets; APC owns 193.4M WGP units, or 88.3% of its outstanding stock, which would fall to ~87.4% after the upcoming offering is completed.
Fri, May 15, 11:57 AM
- CB&I (CBI +9.3%) soars following a Bloomberg report that Anadarko Petroleum (APC -0.1%) is poised to select it as the main contractor for construction of a potential $15B liquefied natural gas export project in Mozambique.
- The decision is a milestone for one of the few energy mega-projects around the world to move forward after crude prices collapsed last year; APC believes as much as 75T cf of natural gas may lie in the Area 1 prospect off Mozambique’s shores.
- Shares of Fluor (FLR -1.4%), which had been considered a contender for the project, are lower.
Wed, Apr. 15, 12:32 PM
- Anadarko Petroleum (APC +2.1%) says it may close sales accords in the coming months that would enable it to authorize a Mozambican project that has the potential to make the country one of the top three liquefied natural gas exporters.
- A final investment decision depends on converting a non-binding heads of agreement that the APC-led project has in place for 8M metric tons/year of gas with customers in Japan, China, Thailand and Singapore into a sales contract.
- APC’s Area 1 and Eni’s (NYSE:E) Area 4 in the Rovuma Basin off Mozambique’s north coast together hold technically recoverable reserves of 120T cf, according to industry consultant Wood Mackenzie.
Wed, Mar. 18, 3:43 PM
- Stifel analysts say oil prices could be headed even lower, but that investors should buy high quality E&P companies with strong assets and/or balance sheets before prices bottom.
- Stifel says the current cycle resembles previous patterns where large-cap E&P stocks lead the oil price, which in turn leads the rig count, thus the firm does not expect shares of the strong companies to track an oil price bottom; small-cap energy stocks, however, followed oil prices closely through the last cycle and even lagged the commodity’s recovery.
- The firm is favorably disposed to Anadarko Petroleum (APC +2.4%), Cabot Oil & Gas (COG +1%), EOG Resources (EOG +4.2%), Noble Energy (NBL +5.3%), Rosetta Resources (ROSE +5.3%) and Whiting Petroleum (WLL +8.6%).
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