After years of acquiring enormous assets which made Chesapeake Energy Corporation (CHK) second only to Exxon Mobil (XOM) in natural gas production, CEO and Chairman Aubrey McClendon, who founded the company, was forced to leave April 1, and has now been replaced by Anadarko Petroleum (APC) executive Robert Douglas Lawler.
Who you may ask? We'll get into why the question itself, and the answer to the underlying premise of the question is important to this new CEO choice for Chesapeake.
continue reading ...
Showing posts with label Anadarko Petroleum. Show all posts
Showing posts with label Anadarko Petroleum. Show all posts
Saturday, June 1, 2013
Tuesday, February 21, 2012
Enbridge (ENB) (APC) (ED) (AEIS) (BRCM) (NSC) Ratings, Price Targets
Enbridge Inc. (ENB), Anadarko Petroleum (APC), Consolidated Edison, Inc. (ED), Advanced Energy Industries, Inc. (AEIS), Broadcom Corp (BRCM) and Norfolk Southern Corp. (NSC) had ratings and price targets on them adjusted by analysts.
JPMorgan Chase & Co. downgraded Anadarko Petroleum (APC) from an "Overweight" rating to a "Neutral" rating.
Caris & Co. initiated coverage on Consolidated Edison, Inc. (ED). They placed an "Average" rating on the company.
Desjardins upgraded Enbridge Inc. (ENB) from a "Hold" rating to a "Buy" rating.
Citigroup upgraded Advanced Energy Industries, Inc. (AEIS) from a "Neutral" rating to a "Buy" rating.
Auriga upgraded Broadcom (BRCM) from a "Hold" rating to a "Buy" rating.
JPMorgan Chase & Co. downgraded Norfolk Southern Corp. (NSC) from an "Overweight" rating to a "Neutral" rating.
JPMorgan Chase & Co. downgraded Anadarko Petroleum (APC) from an "Overweight" rating to a "Neutral" rating.
Caris & Co. initiated coverage on Consolidated Edison, Inc. (ED). They placed an "Average" rating on the company.
Desjardins upgraded Enbridge Inc. (ENB) from a "Hold" rating to a "Buy" rating.
Citigroup upgraded Advanced Energy Industries, Inc. (AEIS) from a "Neutral" rating to a "Buy" rating.
Auriga upgraded Broadcom (BRCM) from a "Hold" rating to a "Buy" rating.
JPMorgan Chase & Co. downgraded Norfolk Southern Corp. (NSC) from an "Overweight" rating to a "Neutral" rating.
Friday, February 10, 2012
Agrium (AGU) (XWES) (CJES) (APC) (CMP) (PXD) Ratings, Price Targets
Agrium Inc. (NYSE: AGU), World Energy (NASDAQ: XWES), C&J Energy Services (NASDAQ: CJES), Anadarko Petroleum (NYSE: APC), Compass Minerals International, Inc. (NYSE: CMP) and Pioneer Natural Resources (NYSE: PXD) had ratings and price targets on them adjusted by analysts.
World Energy (NASDAQ: XWES) is now covered by analysts at ThinkEquity. They set a “buy” rating on the stock.
C&J Energy Services (NASDAQ: CJES) is now covered by analysts at Morgan Stanley. They set an “equal weight” rating on the stock.
Agrium Inc. (NYSE: AGU) had its price target raised by analysts at Goldman Sachs from $80.00 to $85.00. They now have a “neutral” rating on the stock.
Anadarko Petroleum (NYSE: APC) had its price target raised by analysts at Canaccord Genuity from $101.00 to $107.00. They now have a “buy” rating on the stock.
Compass Minerals International, Inc. (NYSE: CMP) had its price target lowered by analysts at Goldman Sachs from $78.00 to $77.00. They now have a “sell” rating on the stock.
Pioneer Natural Resources (NYSE: PXD) had its price target raised by analysts at Oppenheimer from $110.00 to $125.00. They now have an “outperform” rating on the stock.
World Energy (NASDAQ: XWES) is now covered by analysts at ThinkEquity. They set a “buy” rating on the stock.
C&J Energy Services (NASDAQ: CJES) is now covered by analysts at Morgan Stanley. They set an “equal weight” rating on the stock.
Agrium Inc. (NYSE: AGU) had its price target raised by analysts at Goldman Sachs from $80.00 to $85.00. They now have a “neutral” rating on the stock.
Anadarko Petroleum (NYSE: APC) had its price target raised by analysts at Canaccord Genuity from $101.00 to $107.00. They now have a “buy” rating on the stock.
Compass Minerals International, Inc. (NYSE: CMP) had its price target lowered by analysts at Goldman Sachs from $78.00 to $77.00. They now have a “sell” rating on the stock.
Pioneer Natural Resources (NYSE: PXD) had its price target raised by analysts at Oppenheimer from $110.00 to $125.00. They now have an “outperform” rating on the stock.
Thursday, February 9, 2012
Niska (NKA) (APC) (CRK) (CVG) (SWI) (DNR) (MMP) Ratings, Price Targets
Niska Gas Storage (NYSE: NKA), Anadarko Petroleum (NYSE: APC), Comstock Resources (NYSE: CRK), Convergys Co. (NYSE: CVG), SolarWinds, Inc. (NYSE: SWI), Denbury Resources Inc. (NYSE: DNR) and Magellan Midstream (NYSE: MMP) had ratings and price targets on them adjusted by analysts.
Anadarko Petroleum (APC) had its price target raised by Jefferies Group (NYSE:JEF) to $99.00.
Comstock Resources (CRK) had its price target lowered by Oppenheimer (NYSE:OPY) from $30.00 to $25.00. They have an “Outperform” rating on the company.
Convergys Co. (CVG) had its price target raised by Oppenheimer from $14.00 to $15.00. They have an “Outperform” rating on the company.
SolarWinds, Inc. (SWI) had its price target raised by Needham & Company from $36.00 to $44.00. They have a “Buy” rating on the company.
SolarWinds, Inc. (SWI) had its price target raised by Jefferies Group to $42.00.
Denbury Resources Inc. (DNR) was downgraded by Susquehanna from a “Positive” rating to a “Neutral” rating.
Niska Gas Storage (NKA) was downgraded by Wells Fargo & Co. (NYSE:WFC) from a “Market Perform” rating to an “Underperform” rating.
Magellan Midstream (MMP) was upgraded by Ladenburg Thalmann from a “Neutral” rating to a “Buy” rating. They have a price target of $75.00 on the company, up from $67.50.
Anadarko Petroleum (APC) had its price target raised by Jefferies Group (NYSE:JEF) to $99.00.
Comstock Resources (CRK) had its price target lowered by Oppenheimer (NYSE:OPY) from $30.00 to $25.00. They have an “Outperform” rating on the company.
Convergys Co. (CVG) had its price target raised by Oppenheimer from $14.00 to $15.00. They have an “Outperform” rating on the company.
SolarWinds, Inc. (SWI) had its price target raised by Needham & Company from $36.00 to $44.00. They have a “Buy” rating on the company.
SolarWinds, Inc. (SWI) had its price target raised by Jefferies Group to $42.00.
Denbury Resources Inc. (DNR) was downgraded by Susquehanna from a “Positive” rating to a “Neutral” rating.
Niska Gas Storage (NKA) was downgraded by Wells Fargo & Co. (NYSE:WFC) from a “Market Perform” rating to an “Underperform” rating.
Magellan Midstream (MMP) was upgraded by Ladenburg Thalmann from a “Neutral” rating to a “Buy” rating. They have a price target of $75.00 on the company, up from $67.50.
Thursday, November 3, 2011
OpenTable (OPEN) (APC) (EMR) (ATML) (PCS) Price Targets Changed
OpenTable Inc (NASDAQ: OPEN), Anadarko Petroleum (NYSE: APC), Emerson Electric Co. (NYSE: EMR), Atmel (NASDAQ: ATML) and MetroPCS (NYSE: PCS) had price targets on them adjusted by analysts.
OpenTable Inc. (OPEN) had its price target lowered by Benchmark Co. from $60.00 to $50.00. They have a “Hold” rating on the company.
Anadarko Petroleum (APC) had its price target raised by Barclays Capital from $83.00 to $96.00. They have an “Equal Weight” rating on the company.
Emerson Electric Co. (EMR) had its price target lowered by Sterne Agee to $54.00. They have a “Neutral” rating on the company.
Atmel (ATML) had its price target lowered by Barclays Capital from $14.00 to $12.00. They have an “Overweight” rating on the company.
MetroPCS (PCS) had its price target lowered by RBC Capital from $12.00 to $9.00. They have a “Sector Perform” rating on the company.
OpenTable Inc. (OPEN) had its price target lowered by Benchmark Co. from $60.00 to $50.00. They have a “Hold” rating on the company.
Anadarko Petroleum (APC) had its price target raised by Barclays Capital from $83.00 to $96.00. They have an “Equal Weight” rating on the company.
Emerson Electric Co. (EMR) had its price target lowered by Sterne Agee to $54.00. They have a “Neutral” rating on the company.
Atmel (ATML) had its price target lowered by Barclays Capital from $14.00 to $12.00. They have an “Overweight” rating on the company.
MetroPCS (PCS) had its price target lowered by RBC Capital from $12.00 to $9.00. They have a “Sector Perform” rating on the company.
Wednesday, June 8, 2011
Chevron (CVX) (COP) (XOM) (PBR) (APC) Close Down as Oil Rallies Late in the Session
A late rally for oil prices wasn't enough to bolster giant oil stocks like Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), Exxon Mobil (NYSE:XOM), Petrobras (NYSE:PBR) and Anadarko (NYSE:APC), which all closed down on Tuesday.
Other energy giants like BP (NYSE:BP), Marathon Oil (NYSE:MRO) and Halliburton (NYSE:HAL) did manage to close in positive territory.
Crude for July delivery settled at $99.09 a barrel on the New York Mercantile Exchange, the first positive close in three days, gaining 8 cents. Earlier in trading the contract was down as low as $97.74. Oil is up by about 39 percent over the last year.
Brent crude for July delivery jumped $2.30, or 2 percent, to $116.78 a barrel on the London-based ICE Futures Europe exchange.
The U.S dollar weakened against the euro, with the euro reaching $1.4696. The dollar also fell against the Swiss franc to 0.8327. Against a basket of major currencies the dollar declined to 73.506.
Even with the collapsing dollar it wasn't enough to have a significant impact because of the offsetting effect of the assumption OPEC will boost production, and an anemic economy is expected to reduce demand.
The Dow Jones industrial average dropped 19.15 points, or 0.16 percent, to close at 12,070.81. The Standard & Poor's 500 Index fell 1.23 points, or 0.10 percent, to close at 1,284.94. The Nasdaq Composite Index declined 1.00 point, or 0.04 percent, to end the session at 2,701.56.
Anadarko closed Tuesday at $73.74, down $1.01, or 1.35 percent. Petrobras ended the day at $32.64, falling $0.34, or 1.03 percent. Exxon Mobil closed at $80.00, declining $0.29, or 0.36 percent. ConocoPhillips ended at $70.87, dropping $0.05, or 0.07 percent. Chevron closed at $99.47, losing $0.21, or 0.21 percent.
Other energy giants like BP (NYSE:BP), Marathon Oil (NYSE:MRO) and Halliburton (NYSE:HAL) did manage to close in positive territory.
Crude for July delivery settled at $99.09 a barrel on the New York Mercantile Exchange, the first positive close in three days, gaining 8 cents. Earlier in trading the contract was down as low as $97.74. Oil is up by about 39 percent over the last year.
Brent crude for July delivery jumped $2.30, or 2 percent, to $116.78 a barrel on the London-based ICE Futures Europe exchange.
The U.S dollar weakened against the euro, with the euro reaching $1.4696. The dollar also fell against the Swiss franc to 0.8327. Against a basket of major currencies the dollar declined to 73.506.
Even with the collapsing dollar it wasn't enough to have a significant impact because of the offsetting effect of the assumption OPEC will boost production, and an anemic economy is expected to reduce demand.
The Dow Jones industrial average dropped 19.15 points, or 0.16 percent, to close at 12,070.81. The Standard & Poor's 500 Index fell 1.23 points, or 0.10 percent, to close at 1,284.94. The Nasdaq Composite Index declined 1.00 point, or 0.04 percent, to end the session at 2,701.56.
Anadarko closed Tuesday at $73.74, down $1.01, or 1.35 percent. Petrobras ended the day at $32.64, falling $0.34, or 1.03 percent. Exxon Mobil closed at $80.00, declining $0.29, or 0.36 percent. ConocoPhillips ended at $70.87, dropping $0.05, or 0.07 percent. Chevron closed at $99.47, losing $0.21, or 0.21 percent.
Tuesday, June 7, 2011
Ratings on (APC) (ADBE) (JNPR) (ORCL) (GLW) Reiterated
Ratings on Anadarko Petroleum (NYSE: APC), Adobe Systems (NASDAQ: ADBE), Juniper Networks (NASDAQ: JNPR), Oracle (NASDAQ: ORCL) and Corning Inc. (NYSE: GLW) were reiterated by analysts.
Deutsche Bank (NYSE:DB) reiterated a “buy” rating on Adobe Systems (ADBE).
Citigroup (NYSE:C) reiterated a “buy” rating on Anadarko Petroleum (APC).
Citigroup reiterated a “hold” rating on Corning Inc. (GLW).
Deutsche Bank reiterated a “hold” rating on Juniper Networks (JNPR).
Deutsche Bank reiterated a “hold” rating on Oracle (ORCL).
Deutsche Bank (NYSE:DB) reiterated a “buy” rating on Adobe Systems (ADBE).
Citigroup (NYSE:C) reiterated a “buy” rating on Anadarko Petroleum (APC).
Citigroup reiterated a “hold” rating on Corning Inc. (GLW).
Deutsche Bank reiterated a “hold” rating on Juniper Networks (JNPR).
Deutsche Bank reiterated a “hold” rating on Oracle (ORCL).
Wednesday, June 1, 2011
Ratings on (AER) (AMAG) (APC) (BEN) (BIG) Upgraded
Aercap Holdings N.V. (NYSE: AER), AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG), Anadarko Petroleum (NYSE: APC), Franklin Resources, Inc. (NYSE: BEN) and Big Lots, Inc. (NYSE: BIG) were upgraded by analysts.
JPMorgan Chase & Co. (NYSE:JPM) upgraded Aercap Holdings N.V. (AER) from a “neutral” rating to an “overweight” rating.
Robert W. Baird upgraded AMAG Pharmaceuticals, Inc. (AMAG) from a “neutral” rating to an “outperform” rating. They have a price target of $22.00 on the company, up from $19.00.
Wells Fargo & Co. (NYSE:WFC) upgraded Anadarko Petroleum (APC) from a “market perform” rating to an “outperform” rating.
Bank of America (NYSE:BAC) upgraded Franklin Resources, Inc. (BEN) from a “neutral” rating to a “buy” rating. They have a price target of $156.00 on the company.
ThinkEquity analysts upgraded shares of Big Lots, Inc. (NYSE: BIG) from a “hold” rating to a “buy” rating. They now have a $38.00 price target on the company.
JPMorgan Chase & Co. (NYSE:JPM) upgraded Aercap Holdings N.V. (AER) from a “neutral” rating to an “overweight” rating.
Robert W. Baird upgraded AMAG Pharmaceuticals, Inc. (AMAG) from a “neutral” rating to an “outperform” rating. They have a price target of $22.00 on the company, up from $19.00.
Wells Fargo & Co. (NYSE:WFC) upgraded Anadarko Petroleum (APC) from a “market perform” rating to an “outperform” rating.
Bank of America (NYSE:BAC) upgraded Franklin Resources, Inc. (BEN) from a “neutral” rating to a “buy” rating. They have a price target of $156.00 on the company.
ThinkEquity analysts upgraded shares of Big Lots, Inc. (NYSE: BIG) from a “hold” rating to a “buy” rating. They now have a $38.00 price target on the company.
Friday, May 27, 2011
Anadarko (APC) (CXO) (NBL) Jump on Upgrades, Higher Oil Prices
Shares of Anadarko Petroleum (NYSE: APC), Concho Resources Inc. (NYSE: CXO) and Noble Energy (NYSE: NBL) were trading up today after being upgraded by analysts and oil prices trading up.
At just before 12:00 PM EDT, U.S. crude for July delivery was up 26 cents at $100.49 a barrel. Earlier in the day it traded as high as $101.24.
In London, ICE July Brent fell 23 cents to $114.82.
Sterne Agee upgraded Noble Energy (NBL) from a “neutral” rating to a “buy” rating. They have a price target of $107.00 on the company.
Sterne Agee upgraded Anadarko Petroleum (APC) from a “neutral” rating to a “buy” rating. They have a price target of $97.00 on the company.
Wunderlich upgraded Concho Resources Inc. (CXO) from a “hold” rating to a “buy” rating. They have a price target of $105.00 on the company.
Noble Energy was trading at $91.87, gaining $1.08, or 1.19 percent, as of 1:06 PM EDT. Concho Resources was at $96.15, jumping $1.99, or 2.11 percent. Anadarko Petroleum was at $78.54, up $0.65, or 0.83 percent.
At just before 12:00 PM EDT, U.S. crude for July delivery was up 26 cents at $100.49 a barrel. Earlier in the day it traded as high as $101.24.
In London, ICE July Brent fell 23 cents to $114.82.
Sterne Agee upgraded Noble Energy (NBL) from a “neutral” rating to a “buy” rating. They have a price target of $107.00 on the company.
Sterne Agee upgraded Anadarko Petroleum (APC) from a “neutral” rating to a “buy” rating. They have a price target of $97.00 on the company.
Wunderlich upgraded Concho Resources Inc. (CXO) from a “hold” rating to a “buy” rating. They have a price target of $105.00 on the company.
Noble Energy was trading at $91.87, gaining $1.08, or 1.19 percent, as of 1:06 PM EDT. Concho Resources was at $96.15, jumping $1.99, or 2.11 percent. Anadarko Petroleum was at $78.54, up $0.65, or 0.83 percent.
Thursday, November 4, 2010
Anadarko Petroleum (NYSE:APC) Should Deliver 7% to 9% Production Growth Long Term
Over the next five years, Anadarko Petroleum (NYSE:APC) should grow production at an annual rate of 7 percent to 9 percent, says Barclays (NYSE:BCS).
"Anadarko reported an adjusted Q3 EPS headline miss of $0.21 vs. our $0.25 and consensus of $0.28. Higher-than-guided G&A contributed to the miss vs. our estimates as APC accrued a $30-million non-executive compensation charge related to a program designed to retain personnel after the Macondo incident. The company slightly raised 2010 production guidance and lowered spending - 3%. We continue to believe the long-term story is intact with APC poised to deliver 7-9% annual production growth for the next five years. The uncertainty surrounding potential liabilities from the Macondo incident is likely to steer performance in the intermediate term."
EPS estimates lowered from $1.85 to $1.55 for the full year 2010, and for the full year 2011 from $1.45 to $0.80.
Anadarko closed down at $63.64, dropping $0.18, or 0.28 percent. Barclays maintains an "Overweight" on them with a price target of $71, raised from $65.
"Anadarko reported an adjusted Q3 EPS headline miss of $0.21 vs. our $0.25 and consensus of $0.28. Higher-than-guided G&A contributed to the miss vs. our estimates as APC accrued a $30-million non-executive compensation charge related to a program designed to retain personnel after the Macondo incident. The company slightly raised 2010 production guidance and lowered spending - 3%. We continue to believe the long-term story is intact with APC poised to deliver 7-9% annual production growth for the next five years. The uncertainty surrounding potential liabilities from the Macondo incident is likely to steer performance in the intermediate term."
EPS estimates lowered from $1.85 to $1.55 for the full year 2010, and for the full year 2011 from $1.45 to $0.80.
Anadarko closed down at $63.64, dropping $0.18, or 0.28 percent. Barclays maintains an "Overweight" on them with a price target of $71, raised from $65.
Wednesday, November 3, 2010
Anadarko Petroleum (NYSE:APC) Raises Production Guidance for 2010
Based on their stronger-than-expected quarterly performance, Anadarko Petroleum (NYSE:APC) increased their production guidance for 2010, and UBS (NYSE:UBS) agrees with them, raising their price target on the oil company while maintaining a "Buy" rating on them.
UBS said, "APC raised 2010 production guidance by 0.5 MMBoe to 233-236 MMBoe (entirely due to stronger than expected 3Q), trimmed its capex budget by $150 million, and raised per unit cost guidance 2%. We’re adjusting ‘10 EPS/CFPS from $1.75/10.85 to $1.55/$10.60 while maintaining ’11 EPS/CFPS at $2.10/$12.20."
Anadarko closed Tuesday's session at $63.82, increasing $0.66, or 1.04 percent. UBS raised their price target on the company from $66 to $72.
UBS said, "APC raised 2010 production guidance by 0.5 MMBoe to 233-236 MMBoe (entirely due to stronger than expected 3Q), trimmed its capex budget by $150 million, and raised per unit cost guidance 2%. We’re adjusting ‘10 EPS/CFPS from $1.75/10.85 to $1.55/$10.60 while maintaining ’11 EPS/CFPS at $2.10/$12.20."
Anadarko closed Tuesday's session at $63.82, increasing $0.66, or 1.04 percent. UBS raised their price target on the company from $66 to $72.
Monday, October 25, 2010
BP (NYSE:BP) Shares on Hold Until Justice Probe Completed
There are a number of things that need to be resolved before BP's (NYSE:BP) shares will be able to be released from the current constraints on them, not the least of which is the ongoing investigation by the U.S. Justice Department.
An investigation by U.S. Attorney General Eric Holder will determine whether or not BP will be designated as being grossly negligent under the Clean Water Act. If they are, their costs would be up to $17.6 billion.
They would actually be much higher though, as their partners in the failed Macondo well, Anadarko (NYSE:APC) and Mitsui (NASDAQ:MITSY), would be exempt from paying for their part in the mishap because of the terms of the partnership if BP is considered to be grossly negligent in the matter. That could be worth several billion more at minimum to them.
Other potential consequences could be the forfeiture well operating licenses and not being allowed to bid on future government contracts.
Until this is brought to a conclusion, BP shares will continue to underperform.
At this time BP is the largest operator in the Gulf of Mexico.
An investigation by U.S. Attorney General Eric Holder will determine whether or not BP will be designated as being grossly negligent under the Clean Water Act. If they are, their costs would be up to $17.6 billion.
They would actually be much higher though, as their partners in the failed Macondo well, Anadarko (NYSE:APC) and Mitsui (NASDAQ:MITSY), would be exempt from paying for their part in the mishap because of the terms of the partnership if BP is considered to be grossly negligent in the matter. That could be worth several billion more at minimum to them.
Other potential consequences could be the forfeiture well operating licenses and not being allowed to bid on future government contracts.
Until this is brought to a conclusion, BP shares will continue to underperform.
At this time BP is the largest operator in the Gulf of Mexico.
Tuesday, October 19, 2010
BP (NYSE:BP) Will Waive Liability Cap
Last week when BP (NYSE:BP) would go on record at a court hearing about waiving the liability cap instituted via the Oil Pollution Act of 1990, it caused a mini uproar and confusion after they had publicly stated in the past they would waive the restrictions.
That changed today and clarity was brought to the situation as BP said in a court filing they would indeed waive the liability cap.
Also per the filing, BP was generous with their advice for other major players in the Gulf spill, encouraging Transocean Holdings LLC (NYSE:RIG), Anadarko Petroleum Corp (NYSE:APC) and MOEX Offshore 2007 LLC to also waive the cap.
MOEX is the majority owner of Mitsui (Nasdaq:MITSY), which has a 10 percent stake in the Macondo oil well. Anadarko has a 25 percent stake and BP the remaining 65 percent. Transocean owned the Deepwater Horizon oil rig which was leased by BP from them.
Also in the filing BP stated it has reserved the right to go after reimbursement for money it has already paid from its partners. Much of that remains to be decided based on whether they are designated as being grossly negligent in the matter.
If they are, the other participants and owners probably won't have to pay damages to BP.
That changed today and clarity was brought to the situation as BP said in a court filing they would indeed waive the liability cap.
Also per the filing, BP was generous with their advice for other major players in the Gulf spill, encouraging Transocean Holdings LLC (NYSE:RIG), Anadarko Petroleum Corp (NYSE:APC) and MOEX Offshore 2007 LLC to also waive the cap.
MOEX is the majority owner of Mitsui (Nasdaq:MITSY), which has a 10 percent stake in the Macondo oil well. Anadarko has a 25 percent stake and BP the remaining 65 percent. Transocean owned the Deepwater Horizon oil rig which was leased by BP from them.
Also in the filing BP stated it has reserved the right to go after reimbursement for money it has already paid from its partners. Much of that remains to be decided based on whether they are designated as being grossly negligent in the matter.
If they are, the other participants and owners probably won't have to pay damages to BP.
Monday, September 27, 2010
Williams (NYSE:WMB), Devon (NYSE:DVN), Noble (NYSE:NBL), Apache(NYSE:APA), Williams (NYSE:WMB) Cutting Spending
Natural gas companies like Devon Energy Corp (NYSE:DVN), Noble Energy Inc (NYSE:NBL) Williams (NYSE:WMB) and Apache Corp (NYSE:APA) are all expected to lower their capital expenditures in 2011 in light of ongoing low natural gas prices.
A large portion of the lower capex will be from cutting back on drilling for natural gas by the companies, and other companies with natural gas exposure.
Some of those cuts could be offset by transferring spending to oil exploration and cash generation from free-flowing debt markets.
Williams has already confirmed they're going to cut spending in 2011, and the others mentioned are sure to follow. Lower prices and lower margins, which will result in lower earnings are the reasons behind the spending cuts. That means less money to spend, as too much debt spending would crush the performance of the companies.
One positive area for gas companies is liquids, where companies holding those assets will be able to sell it at premium prices.
An area that will demand capital expenditure are those holding leases on acreage that must be drilled unless they expire.
But based on the price of natural gas, some experts in the industry say supply is so abundant it could be many years before natural gas prices turn around.
The smart companies are increasing their exposure to oil and the liquids mentioned above. Those companies which don't adapt are going to struggle to increase earnings and be profitable.
EOG Resources Inc (NYSE:EOG) and Chesapeake Energy (NYSE:CHK), among others, have already moved in that direction.
Another strategy recently has been for companies heavily exposed to natural gas to raise capital through debt, with Linn Energy (Nasdaq:LINE) and Anadarko Petroleum Corp (NYSE:APC) among the most recent.
They are doing that for the time when the natural gas market recovers, which will probably be a long wait. But they will be prepared for it whenever it does happen.
A large portion of the lower capex will be from cutting back on drilling for natural gas by the companies, and other companies with natural gas exposure.
Some of those cuts could be offset by transferring spending to oil exploration and cash generation from free-flowing debt markets.
Williams has already confirmed they're going to cut spending in 2011, and the others mentioned are sure to follow. Lower prices and lower margins, which will result in lower earnings are the reasons behind the spending cuts. That means less money to spend, as too much debt spending would crush the performance of the companies.
One positive area for gas companies is liquids, where companies holding those assets will be able to sell it at premium prices.
An area that will demand capital expenditure are those holding leases on acreage that must be drilled unless they expire.
But based on the price of natural gas, some experts in the industry say supply is so abundant it could be many years before natural gas prices turn around.
The smart companies are increasing their exposure to oil and the liquids mentioned above. Those companies which don't adapt are going to struggle to increase earnings and be profitable.
EOG Resources Inc (NYSE:EOG) and Chesapeake Energy (NYSE:CHK), among others, have already moved in that direction.
Another strategy recently has been for companies heavily exposed to natural gas to raise capital through debt, with Linn Energy (Nasdaq:LINE) and Anadarko Petroleum Corp (NYSE:APC) among the most recent.
They are doing that for the time when the natural gas market recovers, which will probably be a long wait. But they will be prepared for it whenever it does happen.
Friday, September 10, 2010
Transocean (NYSE:RIG), Anadarko (NYSE:APC) Jump on FBR Capital Comments
Comments from analysts at FBR Capital concerning the liability of Transocean (NYSE:RIG) Anadarko Petroleum Corporation (NYSE:APC) in the BP (NYSE:BP) oil spill, caused the share prices of the companies to move up, with Transocean exploding upward.
In the case of Transocean, the big move seems to be related to the share price being discounted too much, with investors thinking they would be liable for up to $7 billion.
FBR believed they're more likely to come to a settlement with BP for somewhere from $1 billion to $2 billion at top, which grabbed the attention of investor who stampeded to the stock, which is already far above the 3-month trading volume average.
"...we believe it seems reasonable to assume that Transocean might settle with BP for between $1 billion and $2 billion," said FBR Capital analysts.
In the case of Anadarko Petroleum, which owns 25 percent of the Macondo oil well, FBR said they think they'll settle with BP from between $2 billion to $4 billion.
In the case of Transocean, the big move seems to be related to the share price being discounted too much, with investors thinking they would be liable for up to $7 billion.
FBR believed they're more likely to come to a settlement with BP for somewhere from $1 billion to $2 billion at top, which grabbed the attention of investor who stampeded to the stock, which is already far above the 3-month trading volume average.
"...we believe it seems reasonable to assume that Transocean might settle with BP for between $1 billion and $2 billion," said FBR Capital analysts.
In the case of Anadarko Petroleum, which owns 25 percent of the Macondo oil well, FBR said they think they'll settle with BP from between $2 billion to $4 billion.
Tuesday, September 7, 2010
BP's (NYSE:BP) Internal Report to be Released Wednesday
While it won't be the final word on the matter, the internal report from BP (NYSE:BP) which investigated the causes which led up to the explosion on the Deepwater Horizon oil rig, will be released Wednesday morning, and should give a preliminary look at what went wrong.
One major piece of the puzzle missing from the report is the blowout preventer, which is considered the key piece of evidence in what went wrong that day.
The failed blowout preventer was raised from the Gulf bottom during the weekend and FBI agents were on board the BP vessel 'Helix Q4000' to take charge of it.
There has been some concern from other companies with potential liability in the oil well, like Anadarko (NYSE:APC) and Cameron International (NYSE:CAM) on how the blowout preventer will be examined.
The Department of Justice, which now has control of the preventer, hasn't communicated how it's going to proceed with the investigation at this time.
One major piece of the puzzle missing from the report is the blowout preventer, which is considered the key piece of evidence in what went wrong that day.
The failed blowout preventer was raised from the Gulf bottom during the weekend and FBI agents were on board the BP vessel 'Helix Q4000' to take charge of it.
There has been some concern from other companies with potential liability in the oil well, like Anadarko (NYSE:APC) and Cameron International (NYSE:CAM) on how the blowout preventer will be examined.
The Department of Justice, which now has control of the preventer, hasn't communicated how it's going to proceed with the investigation at this time.
BP (NYSE:BP) Ready to Resume Relief Well Drilling
Drilling on the relief well which will be used to perform the final step to permanently plug the Macondo oil well in the Gulf of Mexico, is ready to be resumed by BP (NYSE:BP).
After the final step of removing the failed blowout preventer and replacing it with a new one, the way is cleared for the drilling to begin to reach the annulus of the well where cement and mud will be injected into the well to perform the "bottom kill," which will be the final step in the overall ordeal, which began April 20 when the Deepwater Horizon oil rig exploded and spewed oil into the Gulf.
Anadarko Petroleum (NYSE:APC) and Mitsui were also partners in the project, with Anadarko owning a 25 percent stake and Mitsui (Nasdaq:MITSY) a 10 percent stake through their majority-owned MOEX company.
Government lead man in the Gulf cleanup, Thad Allen, says the damaged well is now "secured," preparing the way for the resumption of drilling of the relief well, which is a short distance from its destination.
After the final step of removing the failed blowout preventer and replacing it with a new one, the way is cleared for the drilling to begin to reach the annulus of the well where cement and mud will be injected into the well to perform the "bottom kill," which will be the final step in the overall ordeal, which began April 20 when the Deepwater Horizon oil rig exploded and spewed oil into the Gulf.
Anadarko Petroleum (NYSE:APC) and Mitsui were also partners in the project, with Anadarko owning a 25 percent stake and Mitsui (Nasdaq:MITSY) a 10 percent stake through their majority-owned MOEX company.
Government lead man in the Gulf cleanup, Thad Allen, says the damaged well is now "secured," preparing the way for the resumption of drilling of the relief well, which is a short distance from its destination.
Friday, August 27, 2010
Chesapeake (NYSE:CHK), EnCana (NYSE:ECA) and Devon (NYSE:DVN) Up on Higher Demand from Warm Weather
Chesapeake Energy (NYSE:CHK), EnCana Corp. (NYSE:ECA) and Devon Energy Corp. (NYSE:DVN), along with Anadarko Petroleum Corp. (NYSE:APC) and Halliburton (NYSE:HAL), on news of the warmer summer increased demand for natural gas for the generation of electricity.
Most of the companies with exposure to the commodity are up today, but there is downward pressure coming as the supply continues to grow in spite of the demand.
The increase in share price of the companies today are based on past demand, and not on future prospects.
For example, for the week ending August 20, stockpiles of natural gas in the lower 48 states increased by 40 billion cubic feet.
There also continues to be ample supply as storage levels are 6.2 percent above their five-year average, even with the recent strong demand. And the natural gas inventories have risen over the Tcf level for only the second time in 2010.
A number of companies with significant exposure to natural gas understand the threats, even in a high-demand period of time, as the huge amount of resource and increasing number of companies entering into the field ensure downward pressure on natural gas prices for some time to come.
Some have been diversifying into oil to help them maintain revenue and earnings growth.
Most of the companies with exposure to the commodity are up today, but there is downward pressure coming as the supply continues to grow in spite of the demand.
The increase in share price of the companies today are based on past demand, and not on future prospects.
For example, for the week ending August 20, stockpiles of natural gas in the lower 48 states increased by 40 billion cubic feet.
There also continues to be ample supply as storage levels are 6.2 percent above their five-year average, even with the recent strong demand. And the natural gas inventories have risen over the Tcf level for only the second time in 2010.
A number of companies with significant exposure to natural gas understand the threats, even in a high-demand period of time, as the huge amount of resource and increasing number of companies entering into the field ensure downward pressure on natural gas prices for some time to come.
Some have been diversifying into oil to help them maintain revenue and earnings growth.
Thursday, August 26, 2010
Should We Invest in BP (NYSE:BP) Now?
After a long downward spiral, BP (NYSE:BP) rebounded a little bit on Wednesday, finishing at $35.25, a gain of $0.33, or 0.95 percent. For some that may look like a possible signal to load up on the stock again, but until a lot more clarity comes concerning the costs associated with the oil spill, BP will remain a crap shoot; for long-term and short-term traders.
The problem is, every time some new clarity comes, several more uncertain elements come to the forefront the dash the positive.
For example, the condition and cause of the blowout preventer and why it didn't perform as it should have. That leaves the possibility of some companies like Cameron International (NYSE:CAM), which built the preventer, open to some liability, but also possibly not.
Now there's the continuing salvage operation which must be performed in a manner which will result in the blowout preventer being in the condition it was when it sunk with the oil rig: Deepwater Horizon.
If something happens when retrieving it, the consequences could change the dynamics of liability going forward.
This type of uncertainty, which will dramatically affect the performance of BP in the years ahead, weigh on everyone, and until they're resolved, it's simply guesswork as to how much BP will end up paying and for how long.
Another factor is whether or not BP will be designated as "grossly negligent" by investigators, which could make a difference in fines of $4.9 billion, at the bottom, to as high as $17.6 billion in the worst case scenario.
One other aspect of that would be the release of their partners in the well, Anadarko Petroleum Corp. (NYSE:APC) and Mitsui (Nasdaq:MITSY) (via majority-owned MOEX Offshore), from liability, which would put billions more on BP to pay out, or save them money if they aren't designated as such.
This is why temporary successes don't do much to move the stock, as uncertainty always creates paralysis or a negative reaction to circumstances, and BP is far from having that settled for some time.
The problem is, every time some new clarity comes, several more uncertain elements come to the forefront the dash the positive.
For example, the condition and cause of the blowout preventer and why it didn't perform as it should have. That leaves the possibility of some companies like Cameron International (NYSE:CAM), which built the preventer, open to some liability, but also possibly not.
Now there's the continuing salvage operation which must be performed in a manner which will result in the blowout preventer being in the condition it was when it sunk with the oil rig: Deepwater Horizon.
If something happens when retrieving it, the consequences could change the dynamics of liability going forward.
This type of uncertainty, which will dramatically affect the performance of BP in the years ahead, weigh on everyone, and until they're resolved, it's simply guesswork as to how much BP will end up paying and for how long.
Another factor is whether or not BP will be designated as "grossly negligent" by investigators, which could make a difference in fines of $4.9 billion, at the bottom, to as high as $17.6 billion in the worst case scenario.
One other aspect of that would be the release of their partners in the well, Anadarko Petroleum Corp. (NYSE:APC) and Mitsui (Nasdaq:MITSY) (via majority-owned MOEX Offshore), from liability, which would put billions more on BP to pay out, or save them money if they aren't designated as such.
This is why temporary successes don't do much to move the stock, as uncertainty always creates paralysis or a negative reaction to circumstances, and BP is far from having that settled for some time.
Monday, August 23, 2010
BP (NYSE:BP), Anadarko (NYSE:APC), Transocean (NYSE:RIG) and Compensation Fund
A lack of clarity and growing confusion has accompanied the BP (NYSE:BP) escrow fund administered by Kenneth Feinberg, specifically surrounding whether or not other companies like Anadarko (NYSE:APC), Transocean (NYSE:RIG), Halliburton (NYSE:HAL) and Cameron International (NYSE:CAM) will be allowed to be sued after claimants are paid.
One thing for sure has already been decided. Those who agree to final claims with BP will have to waive their right to sue at a later date in order to receive the payment.
Confusion comes from the lack of a decision from Feinberg on whether that will extend to other companies in the case of final claims.
Feinberg has said, “The question of whether or not a final payment will require a claimant to release one defendant, BP Plc, or all defendants, has not yet been resolved by me.”
For those receiving claims on an interim basis for losses related to the spill, they will have the right to sue BP or other companies in court.
It's only those who agree to final claims with BP at this time that are waiving the right to sue, and no one else.
One thing for sure has already been decided. Those who agree to final claims with BP will have to waive their right to sue at a later date in order to receive the payment.
Confusion comes from the lack of a decision from Feinberg on whether that will extend to other companies in the case of final claims.
Feinberg has said, “The question of whether or not a final payment will require a claimant to release one defendant, BP Plc, or all defendants, has not yet been resolved by me.”
For those receiving claims on an interim basis for losses related to the spill, they will have the right to sue BP or other companies in court.
It's only those who agree to final claims with BP at this time that are waiving the right to sue, and no one else.
Subscribe to:
Posts (Atom)