Anadarko Petroleum Corp. (APC)

All Comments on APC

  • commenter
    peacefulvall
    ey59
    Aug 14 08:15 AM
    Negative Trend for Oil Exploration and Production Stocks [view article]
    While your article accurately notes the recent decline in crude and natural gas prices, it contains serious shortcomings. First, most E&P company stocks did not rise proportionately with the sharp rise in energy prices we witnessed in the earlier part of the year. Analysts wisely discounted a portion of this rise as a bubble-type phenomena. Second, E&P companies are more accurately measured by multiples of cashflow rather than earnings. Anadarko, for example, produced discretionary cashflow of $2.31 billion in Q2---the equivalent of approximately $19.62 on an annualized basis. This means the company, at $57 per share, trades at a stunningly low 2.9x cashflow. Third, there is extreme disconnect presently between equity values an Net Asset Values (ie: reserves) with many E&P companies trading at roughly 50% to 60% NAV. In summary, there is very little downside in the higher quality large E&P companies even with a return to what many industry experts would consider sustainable pricing: $80 crude and $8 natural gas. Reply
  • commenter
    fxtrader07
    Aug 14 07:04 AM
    Negative Trend for Oil Exploration and Production Stocks [view article]
    analysts were slow to revise upward when oil went up and were slow to revise down when oil and gas tanked. however, most oil and gas stocks never reached bublle valuations of any kind. in fact i would very much challenge your notion of an 'energy bubble'. what we have seen is the first(!) echo of a dollar and credit bubble starting to unwind, reflected in a rise of formerly depressed commodities (overvalued dollars bought too much of a barrel of oil). Now we see a healthy correction. Most e&p companies can live with oil at 80-100. heck, cop and apc and others will make a ton of money from $90 oil.
    valuations are reasonable to dirt-cheap in this sector as long as you do not ecpect oil to drop below 70 for any sustained period of time. Howvere, if that were to occur, I suspect the entire stockmarket would crater by 50%+ as that would signal a global depression unheard of since the 1930s     Reply
  • commenter
    My
    Reference
    Frame
    Aug 14 01:06 AM
    My Website
    Energy Stocks Are Too Cheap to Ignore - Barron's [view article]
    I'm assmuning the P/E ratio's quoted above are for the TTM. That's not what counts. Question is: how does the current market price of oil companies compare to their "normal earning power" in any given year? If you believe 2007 or 2008 earnings reflect a normal year then what you're claiming is that from now until the company winds up they will earn that amount of money every year. The reason you're seeing these "low P/E ratios" is because a lot of investors think recent gains are more a result of temporary conditions in, for example, the price of oil, not fundamental economic shifts that will ensure oil companies earn in the future what they've earned between 2003-2007. Reply
  • commenter
    CPST1
    Aug 14 12:12 AM
    Too Soon to Re-enter Oil Stocks? [view article]
    The option to exercise the utility for any given source of energy is certainly a credential becoming more attainable to more households, businesses, and institutions through ready advancement of technology aided combustion systems. We've also seen geo thermal work exceptionally well by reducing cost of winter heating 50% and eliminating #2 fuel. Strikingly, the conversion to LP, or wood pellet sourced fuel is tantamount to the winter heating season soon to be upon us. It's the diversification and change from doing the same routine the same way that is shifting the demand for fuels more so than the daily spot price which we all can see now is not to be relied upon. Short term supply of ethanol in abundant quantity is as yet to be fully factored because of the first signs now of a high yield corn harvest. Like a flex fuel vehicle so to can there be more diversified application of building utility self contained power systems that can optimize the need for energy as a function of that energies cost. There are so many crossroads that have never been reached before that each new generation of appliance will likely use a fuels complete functionality as it propels the appliance, it is intended to power. Back in the old days we only had use to use less gas on the pedal. Reply
  • commenter
    robc935
    Aug 13 10:53 PM
    Too Soon to Re-enter Oil Stocks? [view article]
    Glad to hear cook503 is going to load up on nat'l gas, it's not like half the country heats their homes with it and the price has already tripled in the past 5 years. As long as you make money, who cares who pays the difference. Reply
  • commenter
    gigem77
    Aug 13 10:14 PM
    Too Soon to Re-enter Oil Stocks? [view article]
    Thanks for the chart.

    Demand for energy is not destroyed, it is subdued or supressed. As prices fall, demand comes back. The EIA data show that over the past 4 weeks demand for gasoline rose week over week. Equilibrium, minus a bunch of speculators, is going to be re-established north of 100 and possibly 110 in oil. Once that becomes apparent the market will take off the discount currently applied to that list of stocks.     Reply
  • commenter
    AREYOUKIDDIN
    G
    Aug 13 07:06 PM
    Oil Rebounds - Fast Money Recap (8/13/08) [view article]
    You must believe that the average investor is a moron. Naked Short Selling is THE culprit here. The hedges have been waiting for this race to the bottom to begin for weeks now. I will not purchase another equity until Naked shorting is permanently illegal in this maket. If it isn't stopped soon our banking system will eventually collapse and the businesses they service will also fail. You will be able to buy shares for pennies on the dollar. Then I'll come back into the market provided that the current chairman of the SEC has been replaced. Reply
  • commenter
    skopros
    Aug 13 05:19 PM
    Energy Stocks Are Too Cheap to Ignore - Barron's [view article]
    how do you deal in a world where smart nations nationalize their energy resources for control and profit while our nation nationalizes its financial system to bail out fraudulant buddies and bankrupt taxpayers? drill ,drill, drill is just about like bomb, bomb, bomb--BS for imbeciles that won't make any difference in securing any kind of energy independence for decades. if oil keeps tanking, won't that mean there's plenty around? or was that just the way it hsappened in the good old market days when John D ran the oil show?? Reply
  • commenter
    cook503
    Aug 13 02:28 PM
    My Website
    Too Soon to Re-enter Oil Stocks? [view article]
    There may be demand destruction in oil, but not in natural gas. In fact, we're going to see demand for natural gas increase in the coming years since it is more cost efficient than oil at current prices and also far more environmentally friendly. I'd load up now, but this is for the long term; don't expect 40% returns in a month or two. Reply
  • commenter
    Zagreus
    Ammon
    Aug 13 11:38 AM
    My Website
    Too Soon to Re-enter Oil Stocks? [view article]
    I can't object to the notion of buying them while they're low, but call me a pantsy. This feels like catching a falling knife. (I have a new knife set, VERY sharp, maybe that's why I'm worried....) Reply
  • commenter
    thomas728
    Aug 13 11:22 AM
    Energy Stocks Are Too Cheap to Ignore - Barron's [view article]
    CPST1

    And I would hope the lessened use of gasoline would continue.

    Now however, we are entering the crack to Home Heating # 2.

    My first thought is a pipedream as usage of gasoline and diesel
    will return to numbers more indicitive of seasonal use.Sure,
    less gasoline in the winter and increasing demand as vacation
    time approaches next spring.......people will get tired of "staycations"...
    indusrial demand here and offshore will not diminish,and while
    other factors helped lead to this spring and summer's rise
    (hedging for one) crude will find a real level....no bubble
    environment......and off we go.

    I don't give a damn about consensus this arena is one for common
    sense.As in that light some will be right some wrong.

    I tend to favor the ETFs but in any case the P:Es out there are
    preposterous and as such I must have oil in any balanced
    portfolio.

    Good trading or in the case of oil good buy and hold...wow
    what yields !!!!!!!!!

    Tom     Reply
  • commenter
    Maxroom
    Aug 13 11:10 AM
    Too Soon to Re-enter Oil Stocks? [view article]
    Not exactly sure why CHK is listed among the "oil" stocks. Sure, it's energy, but it's not exactly "small" either.

    But, in any case, I agee that it's a perfect time. I just added to my CHK holdings this last week - and I'm already in positive territory.     Reply
  • commenter
    CPST1
    Aug 13 11:05 AM
    Too Soon to Re-enter Oil Stocks? [view article]
    Add bio fuels because of mandates to the blend and the margins change drastically because, by law, certain fuels used for transportion are required to use ethanol. There is a reduction for gas and not for ethanol. Most ethanol is transported by rail before blending and crop (ethanol) harvest yields are expected to be at record levels this year. The jump in oil price has not withstood its value and instead reduced its demand. Reply
  • commenter
    longoil
    Aug 13 10:55 AM
    Too Soon to Re-enter Oil Stocks? [view article]
    Perfect time to buy; Low stock prices, end of summer driving season is near and winter heating season will begin soon. Historically, late August to early September are excellent entry points for oil stocks. Reply
  • commenter
    gap
    Aug 13 10:45 AM
    My Website
    Too Soon to Re-enter Oil Stocks? [view article]
    A very helpful analysis of companies in the USA oil industry, enabling a brief comparison of the many competing companies. Reply
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