After the introduction of spill legislation yesterday, the cost of protecting Anadarko Petroleum (NYSE:APC) debt rose to its highest levels in close to a year as liability would increase from $75 million up to a staggering $10 billion if the bill is passed.
Anadarko has a 25 percent non-operating interest in the leaking rig.
Costs for credit-default swaps increased 15 basis points to 120.6 basis points, the most its been since May 26, 2009.
For a smaller oil company like Anadarko, which generated $716 million in net income last quarter, or $1.43 a share, the exposure is extraordinary, and could ultimately be devastating in the worst case scenario, which isn't out of the question in light of the negative publicity and extent of the oil spill.
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