May. 5, 2014, 5:25 PM
- Anadarko Petroleum (APC) +2.3% AH after it swung to a Q1 loss due to a $4.3B contingent loss related to its settlement of litigation involving the 2006 acquisition of Kerr-McGee, but excluding settlement impacts and other items, adjusted earnings rose to $1.26 from $1.08 a year ago, and revenue easily beat expectations in soaring 50% to $5.84B.
- Delivered record daily sales volumes of 819K boe/day, up 3.2% Y/Y, boosted by a ~10K boe jump in output from wells in fields including the Eagle Ford in south Texas and the Wattenberg in Colorado.
- Raises the midpoint of FY 2014 sales-volume guidance by 3.5M boe.
- Says successful appraisal drilling activities in the Orca field increased total estimated recoverable resources in Mozambique's Offshore Area 1 to 50T-70T cf or more of natural gas.
May. 5, 2014, 4:13 PM| Comment!
May. 4, 2014, 5:35 PM
- AEIS, AIG, APC, APL, ARE, AXLL, BDE, BNFT, CATM, CFN, CKEC, CKP, CRK, DATA, ECOL, ECOM, EGOV, ELNK, ENH, EOG, EOX, FLDM, FN, G, HCLP, HGR, HI, IDTI, ININ, KAR, LF, MCEP, MED, MR, NLS, OAS, OTTR, PIKE, PRI, PSMI, QLYS, RBC, RGR, ROSE, RWT, SALE, SKH, SMG, SNHY, STAG, SZYM, THC, TXRH, UAM, VECO, VNO, VVUS, WG, YY, ZIPR.
Apr. 16, 2014, 11:24 AM
- Anadarko Petroleum (APC +0.9%) suspends drilling on a Gulf of Mexico deepwater rig that was rocked by weather-driven waves, apparently rupturing the hull column and flooding the ballast tank.
- The Ensco (ESV -1.5%) rig was conducting exploration activities for APC in the Nansen field when the weather front moved through the area; it was slammed by a giant wave and began taking on water.
- ESV says the situation is stable for now, and there is no need to evacuate the 116 people on board the rig.
Apr. 12, 2014, 8:25 AM
- Ohio geologists for the first time have linked earthquake activity in the Marcellus Shale to fracking, a new connection that could have implications for oil and gas drilling in the state and beyond.
- As a result, Ohio is setting new permitting conditions in quake-sensitive areas and has halted drilling indefinitely at the site of five quakes last month in the Youngstown area.
- Earthquakes recently rattled residents in Oklahoma, putting that state on track for record quake activity this year, which some seismologists say may be tied to oil and gas exploration.
- Among companies drilling in the Marcellus and Utica shales: RRC, CHK, COG, ACMP, APC, ATLS, CVX, CNX, DTE, EOG, EQT, XCO, XOM, MWE, NBL, RGP, REXX, RICE, RDS.A, RDS.B,SWN, STO, SXL, TLM, WMB, WPX.
Apr. 8, 2014, 6:21 PM
- Drilling fees on nearly 6,500 natural gas wells in the Marceluus Shale will bring more than $630M to Pennsylvania's coffers by the end of the year, three years after the state passed the fees into law, but critics say the oil and gas companies aren’t paying enough.
- Range Resources (RRC) paid the most with $27M in fees last year, followed by Chesapeake Energy (CHK) with $26.6M; among others, Cabot Oil & Gas (COG) forked over $13.2M, Anadarko Petroleum (APC) paid $12.3M, and EOG Resources (EOG) coughed up $4.5M.
- Critics who want the companies to pay more point to a report from the state’s independent fiscal branch that found Pennsylvania’s drilling fees were lower than severance tax rates on gas production in Texas and other states, which do not have drilling fees.
Apr. 7, 2014, 10:58 AM
- Stifel analysts raise price targets on their favorite exploration and production stocks, saying all the ingredients are in place for crude oil prices to stay elevated.
- Anadarko's (APC) target is lifted to $104 from $87 after underperforming the sector, but the Tronox environmental contamination suit went back decades and last week's settlement removes a huge overhang from the stock.
- Canadian Natural Resources (CNQ), considered one of the top Canadian oil stocks with the largest reserve base among its peers, is raised to $42 from $38.
- EOG Resources (EOG), which is reporting record oil and gas production and revolutionizing the U.S. energy position, is upped to $120 from $100.
- Also receiving price target raises: GPOR, NFX, PQ, SWN.
Apr. 4, 2014, 6:02 PM
- Anadarko shares (APC) have rallied ~17.5% over the past two sessions on the heels of the announcement that it settled fraud claims related to its Kerr-McGee acquisition, and they could rise even more, Barron's Johanna Bennett writes.
- More than just a brief bounce in the stock, litigation concerns have not only masked significant increases in tangible hard asset value but also led to the shares being under-owned by institutional investors, Credit Suisse analyst Arun Jayaram says.
- APC appears to have multiple options to fund the $5.1B settlement, and Jayaram argues the company still will be able to pursue a large buyback or meaningful dividend increase.
Apr. 4, 2014, 10:58 AM
- Analysts jump aboard the Anadarko (APC +2.5%) bandwagon after the settlement in the Tronox lawsuit removes market uncertainty.
- J.P. Morgan upgrades shares to Overweight from Underweight with a new $129 price target, up from $84, viewing the settlement as positive for the stock even following yesterday's 14.5% surge.
- Raymond James raises its price target to $118 from $94, noting that APC's balance sheet is in great shape with more than enough liquidity to handle the settlement amount, not to mention its ownership of Western Gas shares valued at ~$9.8B.
- Morgan Stanley lifts its price target to $115 from $110, seeing APC now free to unlock significant value potential through asset sales, share buybacks and/or accelerated growth.
Apr. 3, 2014, 6:26 PM
- “It’s wonderful to get this behind us because it allows Anadarko to be fairly valued in the marketplace," CEO Al Walker says of APC's $5.15B settlement related to its purchase of Kerr-McGee and the TROX bankruptcy, adding that lifting the cloud of uncertainty will let the company pursue ventures it had not been able to while the legal fights continued.
- “This is the best move Al Walker has ever made,” Oppenheimer analyst Fadel Gheit says, noting today's 14.5% rise in APC shares. "This is a premier exploration company that has this dark cloud hanging over them and now its gone."
- APC's general counsel says the company has substantial liquidity to pay for the settlement, including more than $6B in cash and a $5B unused line of credit.
Apr. 3, 2014, 2:40 PM
- Anadarko (APC +12.1%) confirms it has entered into a settlement with the plaintiffs in the Tronox (TROX +1.6%) case to resolve all claims against Kerr-McGee, agreeing to pay $5.15B to settle environmental claims left behind when it bought the company for $18B in 2005.
- APC expects to record a gross tax benefit of ~$1.65B associated with the settlement, offset by ~$1.1B in uncertain tax positions, resulting in a net tax benefit of ~$550M.
- The U.S. had initially sought $25B from APC to clean up 2,772 sites and compensate ~8,100 TROX claimants, and a court in December said APC could expect to pay damages as low as $5.2B and as high as $14.2B.
Apr. 3, 2014, 1:54 PM| 1 Comment
Apr. 1, 2014, 2:51 PM
- Marcellus shale gas producers will benefit more than producers elsewhere in the U.S. because of several favorable circumstances - including large producing wells in the northeast U.S. conveniently located near major markets - even if prices were to decline to 2012 levels, according to a Moody’s report.
- Anadarko Petroleum (APC), Southwestern Energy (SWN) and Chesapeake Energy (CHK) - all of which entered the play early during a weak natural gas price environment - especially have benefited, Moody's says.
- An infrastructural overhaul is still needed as buyers move away from traditional production hubs such as the Haynesville and Barnett, the credit rating agency says; the transition already has caused a decline in credit quality for Exco Resources (XCO), Forest Oil (FST) and Quicksilver Resources (KWK).
Mar. 26, 2014, 3:58 PM
- Mozambique’s government said it’s in talks with Rio Tinto (RIO -0.7%) over capital gains tax on the company’s $4.2B acquisition of Benga coal mines from Riversdale Mining in 2011.
- "At some stage, they have to follow local law," as the acquisition involved mining assets in Mozambique, a government official says.
- Mozambique is looking to more than double the $1.3B it raised from capital gains tax on five deals since 2012 with another 10 transactions pending; Anadarko Petroleum (APC) paid tax of $520M after selling its 10% stake in a Mozambique gas field to ONGC Videsh.
Mar. 25, 2014, 3:22 PM
- Anadarko Petroleum (APC +0.3%) has lagged other U.S. E&P names thanks to the massive potential damages linked to its Kerr-McGee purchase, but APC shares now trade at a 25%-45% discount to peers - cheap, no matter how you slice the Tronox liabilities - Deutsche Bank believes.
- While some of the perceived value gap is driven by Tronox uncertainty, the firm notes even a Tronox liability at the very high end of a potential range - say, $20B - would value APC's onshore business at a still discounted multiple of 4.9x its estimated 2015 EV/EBITDA; the asset value is "clearly apparent."
Mar. 13, 2014, 10:35 AM
- South Africa’s ruling African National Congress has used its parliamentary majority to push through changes to minerals laws that companies such as Exxon Mobil (XOM) and BHP Billiton (BHP) say will hurt investment.
- The new law will secure for the state a free 20% stake in all new energy ventures and enable it to buy an unspecified additional share at an "agreed price,” and it enable the mines minister to declare some minerals strategic and force companies processing them to sell some output to local manufacturers.
- Rules for energy companies were made more onerous after lawmakers scrapped a 50% cap on the size of the stake the state may demand in new projects, which would have “a chilling effect" on investment, according to a trade association whose members include XOM, BHP, Anadarko (APC) and Total (TOT).
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