Apache (APA), Pengrowth Energy Trust (PGH), Kraft Foods Inc. (KFT), Pandora Media (P), Nestle (NSRGY), General Growth Properties (GGP) and Zions Bancorporation (ZION) had ratings and price targets on them adjusted by analysts.
Global Hunter Securities initiated coverage on Apache (APA). They placed a "Buy" rating and price target of $130.00 on the company.
BMO Capital Markets upgraded Pengrowth Energy Trust (PGH) from a "Market Perform" rating to a "Outperform" rating.
Jefferies Group downgraded Kraft Foods Inc. (KFT) from a "Buy" rating to a "Hold" rating.
Citigroup (C) downgraded Pandora Media (P) from a "Buy" rating to a "Neutral" rating.
BNP Paribas upgraded Nestle (NSRGY) from a "Neutral" rating to a "Outperform" rating.
Citigroup initiated coverage on General Growth Properties (GGP). They placed a "Neutral" rating on the company.
Roth Capital initiated coverage on Zions Bancorporation (ZION). They placed a "Buy" rating on the company.
Showing posts with label Apache Corp. Show all posts
Showing posts with label Apache Corp. Show all posts
Wednesday, March 7, 2012
Friday, January 27, 2012
Apache (APA) (SWN) (UPL) (WLP) (WPX) Ratings, Price Targets
Apache (NYSE: APA), Southwestern Energy (NYSE: SWN), Ultra Petroleum Corp. (NYSE: UPL), WellPoint, Inc. (NYSE: WLP) and WPX ENERGY (NYSE: WPX) ratings and price targets.
Apache (APA) had its price target lowered by Barclays Capital (NYSE:BCS) from $137.00 to $131.00. They have an “Overweight” rating on the company.
Southwestern Energy (SWN) had its price target lowered by Barclays Capital from $42.00 to $30.00. They have an “Equal Weight” rating on the company.
Ultra Petroleum Corp. (UPL) had its price target lowered by Barclays Capital from $35.00 to $23.00. They have an “Equal Weight” rating on the company.
WellPoint, Inc. (WLP) had its price target lowered by Goldman Sachs (NYSE:GS) to $76.00. They have a “Neutral” rating on the company.
WPX ENERGY (WPX) had its price target lowered by Barclays Capital from $29.00 to $20.00. They have an “Overweight” rating on the company.
Apache (APA) had its price target lowered by Barclays Capital (NYSE:BCS) from $137.00 to $131.00. They have an “Overweight” rating on the company.
Southwestern Energy (SWN) had its price target lowered by Barclays Capital from $42.00 to $30.00. They have an “Equal Weight” rating on the company.
Ultra Petroleum Corp. (UPL) had its price target lowered by Barclays Capital from $35.00 to $23.00. They have an “Equal Weight” rating on the company.
WellPoint, Inc. (WLP) had its price target lowered by Goldman Sachs (NYSE:GS) to $76.00. They have a “Neutral” rating on the company.
WPX ENERGY (WPX) had its price target lowered by Barclays Capital from $29.00 to $20.00. They have an “Overweight” rating on the company.
Monday, January 9, 2012
Apache (APA) (MON) (BG) (CLF) (UNS) (END) (MOS) Ratings, Price Targets
Apache (NYSE: APA), Monsanto Co. (NYSE: MON), Bunge Limited (NYSE: BG), Cliffs Natural Resources Inc. (NYSE: CLF), Unisource Energy (NYSE: UNS), Endeavour International Co. (NYSE: END) and The Mosaic Company (NYSE: MOS) ratings and price targets.
Apache (APA) had its price target lowered by Oppenheimer (NYSE:OPY) to $120.00.
Monsanto Co. (MON) had its “Hold” rating reiterated by Jefferies Group (NYSE:JEF).
Bunge Limited (BG) is now covered by Piper Jaffray (NYSE:PJC). They have a “Neutral” rating and a price target of $63.00 on the company.
Cliffs Natural Resources Inc. (CLF) is now covered by RBC Capital. They have an “Outperform” rating and a price target of $87.00 on the company.
Unisource Energy (UNS) is now covered by Jefferies Group. They placed a “Hold” rating and a price target of $38.00 on the company.
Endeavour International Co. (END) had its price target lowered by C.K. Cooper from $14.00 to $12.00. They have a “Buy” rating on the company.
The Mosaic Company (MOS) had its price target lowered by Ticonderoga from $74.00 to $70.00. They have a “Buy” rating on the company.
Apache (APA) had its price target lowered by Oppenheimer (NYSE:OPY) to $120.00.
Monsanto Co. (MON) had its “Hold” rating reiterated by Jefferies Group (NYSE:JEF).
Bunge Limited (BG) is now covered by Piper Jaffray (NYSE:PJC). They have a “Neutral” rating and a price target of $63.00 on the company.
Cliffs Natural Resources Inc. (CLF) is now covered by RBC Capital. They have an “Outperform” rating and a price target of $87.00 on the company.
Unisource Energy (UNS) is now covered by Jefferies Group. They placed a “Hold” rating and a price target of $38.00 on the company.
Endeavour International Co. (END) had its price target lowered by C.K. Cooper from $14.00 to $12.00. They have a “Buy” rating on the company.
The Mosaic Company (MOS) had its price target lowered by Ticonderoga from $74.00 to $70.00. They have a “Buy” rating on the company.
Thursday, October 7, 2010
Petrobras (NYSE:PBR), BP (NYSE:BP), Conoco (NYSE:COP) Lead Industry to $85 Billion in 3rd Quarter Deals
Third quarter oil and gas deals in 2010 soared to $85 billion, led by Petrobras (NYSE:PBR), BP Plc (NYSE:BP) and ConocoPhillips (NYSE:COP).
Petrobras obviously led the way with their deal with the Brazilian government valued at $42.5 billion, about half of the overall total for deals in the third quarter.
BP divested of $8.9 billion in assets, most of that in deals with Apache Corp. (NYSE:APA), who acquired about $7 billion in assets from the oil giant. BP is attempting to raise about $30 billion to fund liabilities related to the Gulf oil spill.
ConocoPhillips generated sales of $5.8 billion in the quarter when they reduced their stake in Lukoil from 19.2 percent to 6.6 percent. In an effort to strengthen their balance sheet, they're looking at divesting of $10 billion assets overall.
According to Evaluate Energy’s Global M&A CEO Richard Krijgsman, “Last quarter, we saw the biggest volume of exploration and production deals ever. We are seeing major structural shifts in the market as publicly quoted and national oil companies vie for reserves, and the M&A market is simply reflecting this trend.”
Evaluate Energy tracks the various oil and gas deals around the globe daily.
Sinopec recently acquired a 40 percent stake in Repsol for $7.1 billion, bring the overall total in 2010 for Brazilian deal concerning deepwater assets to $56 billion.
The other major deal in the quarter was the divestiture of $8.5 billion by Cairn Energy of 51 percent of their stake in Carin India. They sold that to Vedanta Resources, a company based in India.
Petrobras obviously led the way with their deal with the Brazilian government valued at $42.5 billion, about half of the overall total for deals in the third quarter.
BP divested of $8.9 billion in assets, most of that in deals with Apache Corp. (NYSE:APA), who acquired about $7 billion in assets from the oil giant. BP is attempting to raise about $30 billion to fund liabilities related to the Gulf oil spill.
ConocoPhillips generated sales of $5.8 billion in the quarter when they reduced their stake in Lukoil from 19.2 percent to 6.6 percent. In an effort to strengthen their balance sheet, they're looking at divesting of $10 billion assets overall.
According to Evaluate Energy’s Global M&A CEO Richard Krijgsman, “Last quarter, we saw the biggest volume of exploration and production deals ever. We are seeing major structural shifts in the market as publicly quoted and national oil companies vie for reserves, and the M&A market is simply reflecting this trend.”
Evaluate Energy tracks the various oil and gas deals around the globe daily.
Sinopec recently acquired a 40 percent stake in Repsol for $7.1 billion, bring the overall total in 2010 for Brazilian deal concerning deepwater assets to $56 billion.
The other major deal in the quarter was the divestiture of $8.5 billion by Cairn Energy of 51 percent of their stake in Carin India. They sold that to Vedanta Resources, a company based in India.
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.
Wednesday, September 15, 2010
Citigroup (NYSE:C) Says Cnooc Could Pay BP (NYSE:BP) $10.2 Billion for Asset in Argentina
Citigroup (NYSE:C) said today Cnooc Ltd. could make a bid of $10.2 billion for its 60 percent for BP's (NYSE:BP) stake in Argentina’s Pan American Energy LLC. Cnooc is the largest Chinese offshore exploration company.
The bid would be a 10 percent premium over what it paid earlier in 2010 for Pan American, but that is because they would assume control of the company if they are successful in their BP bid.
If this goes through, it would be close to double the approximate $10 billion in assets already sold, and two-thirds of the way toward the $30 billion BP is attempting to raise to meet liability obligations in relationship to the Gulf of Mexico oil spill.
Cnooc is reportedly looking for a partner in the bid, which could come from Apache Corp. (NYSE:APA), Occidental Petroleum Corp. (NYSE:OXY) or Total SA (NYSE:TOT), all of which have operations in Argentina already.
The bid would be a 10 percent premium over what it paid earlier in 2010 for Pan American, but that is because they would assume control of the company if they are successful in their BP bid.
If this goes through, it would be close to double the approximate $10 billion in assets already sold, and two-thirds of the way toward the $30 billion BP is attempting to raise to meet liability obligations in relationship to the Gulf of Mexico oil spill.
Cnooc is reportedly looking for a partner in the bid, which could come from Apache Corp. (NYSE:APA), Occidental Petroleum Corp. (NYSE:OXY) or Total SA (NYSE:TOT), all of which have operations in Argentina already.
Tuesday, September 7, 2010
BP's (NYSE:BP) Alaskan Assets Drawing Interest Again
After failing to come to a deal with Apache (NYSE:APA) in July to sell its Alaskan assets, there is a renewed interest in the 26 percent stake BP (NYSE:BP) has in the gigantic Prudhoe Bay oilfield, including operational rights.
Also named as a company having interest in the asset is Occidental Petroleum Corp. (NYSE:OXY).
Over the weekend BP let it be known they're raising their asset sale target from $30 billion to $40 billion, as liabilities continue to mount from the oil spill in the Gulf of Mexico.
It isn't clear at this time if BP will continue to hold part of the stake in Prudhoe Bay field, or will sell the entirety of it.
BP has already sold gas assets from the U.S., Canada and Egypt to Apache for $7 billion. They stopped the original attempt to sell Prudhoe to Apache because it had become too complicated.
Estimates for loss of production as a result of the $30 billion in assets sold is at about 8 percent, making it harder for the company to generate consistent revenue and earnings to meet their growing liabilities.
Depending on which assets are sold in the future, the new $40 billion target in asset sales may cause a loss of production of up to roughly 11 percent.
Also named as a company having interest in the asset is Occidental Petroleum Corp. (NYSE:OXY).
Over the weekend BP let it be known they're raising their asset sale target from $30 billion to $40 billion, as liabilities continue to mount from the oil spill in the Gulf of Mexico.
It isn't clear at this time if BP will continue to hold part of the stake in Prudhoe Bay field, or will sell the entirety of it.
BP has already sold gas assets from the U.S., Canada and Egypt to Apache for $7 billion. They stopped the original attempt to sell Prudhoe to Apache because it had become too complicated.
Estimates for loss of production as a result of the $30 billion in assets sold is at about 8 percent, making it harder for the company to generate consistent revenue and earnings to meet their growing liabilities.
Depending on which assets are sold in the future, the new $40 billion target in asset sales may cause a loss of production of up to roughly 11 percent.
Thursday, September 2, 2010
Mariner (NYSE:ME), Apache (NYSE:APA) Shares Drop on Oil Rig Explosion
An explosion and fire on one of Mariner Energy's (NYSE:ME) oil rigs, caused the share price of the company, along with Apache Corp. (NYSE:APA) to fall on the uncertainty created around the accident.
Apache Corp. was affected because they're expected to acquire Mariner Energy.
The oil rig owned by Mariner is named "Vermilion 398," wasn't producing at the time, and word is, once the Coast Guard checked things out, no oil leaks or sheen were found in the water surrounding the rig.
After the explosion, a fire started on the Vermilion, but that is all under control.
Mariner Energy was at fell to $22.58, losing $0.77, or 3.3 percent as of 12:43 PM EDT. Apache stood at $90.48, declining $1.98, or 2.14 percent at 12:45 PM EDT.
Correction: The oil rig did have seven actives wells with it, producing about 1,400 barrels a day on average.
Apache Corp. was affected because they're expected to acquire Mariner Energy.
The oil rig owned by Mariner is named "Vermilion 398," wasn't producing at the time, and word is, once the Coast Guard checked things out, no oil leaks or sheen were found in the water surrounding the rig.
After the explosion, a fire started on the Vermilion, but that is all under control.
Mariner Energy was at fell to $22.58, losing $0.77, or 3.3 percent as of 12:43 PM EDT. Apache stood at $90.48, declining $1.98, or 2.14 percent at 12:45 PM EDT.
Correction: The oil rig did have seven actives wells with it, producing about 1,400 barrels a day on average.
Tuesday, August 17, 2010
Apache (NYSE:APA) Selling Bonds to Help Acquire BP (NYSE:BP) Assets
Part of the $7 billion Apache Corp. (NYSE:APA) needs to acquire oil and gas assets from BP (NYSE:BP) will be raised by selling $500 million or above worth of 30-year bonds today.
Apache was required to pay $5 billion as a deposit to BP by July 30, and the other $2 billion in the latter part of 2010. The deal is still subject to being cleared by regulators.
The company will use the sale of the bonds to help pay for a bridge facility they used to close the deal on assets held by BP in America, including the Permian Basin and properties in New Mexico.
Other BP assets acquired by Apache are located in Canada and Egypt.
Apache will us cash on hand, commercial paper, common stock, revolving credit facilities and depository shares to finance the other assets they're buying from BP.
The company has made three separate major acquisitions this year totaling about $12 billion.
Apache was required to pay $5 billion as a deposit to BP by July 30, and the other $2 billion in the latter part of 2010. The deal is still subject to being cleared by regulators.
The company will use the sale of the bonds to help pay for a bridge facility they used to close the deal on assets held by BP in America, including the Permian Basin and properties in New Mexico.
Other BP assets acquired by Apache are located in Canada and Egypt.
Apache will us cash on hand, commercial paper, common stock, revolving credit facilities and depository shares to finance the other assets they're buying from BP.
The company has made three separate major acquisitions this year totaling about $12 billion.
Wednesday, August 11, 2010
Apache (NYSE:APA) Finishes Acquisition of BP (NYSE:BP) Permian Basin
Apache Corporation (NYSE:APA) announced today it has finished the acquisition of the assets held by BP (NYSE:BP) in the Permian Basin for $3.1 billion.
The Permian Basin assets they acquired are in West Texas and New Mexico.
Included in the deal are the land, infrastructure and oil and gas operations.
The land part of the deal includes 1.7 million gross acres, 405,000 of which are classified as net mineral and fee acres, which have the possibility of producing more product.
Proven reserves in the 10 Permian fields Apache acquired are 141 million barrels of oil equivalent. Of that 65 percent are liquids. Gas per day from the fields is MMcf. There are also two gas processing plants which are operational.
Apache paid for the assets with cash, debt and equity offerings.
BP will continue to operate the properties for Apache through November 30.
The Permian Basin assets they acquired are in West Texas and New Mexico.
Included in the deal are the land, infrastructure and oil and gas operations.
The land part of the deal includes 1.7 million gross acres, 405,000 of which are classified as net mineral and fee acres, which have the possibility of producing more product.
Proven reserves in the 10 Permian fields Apache acquired are 141 million barrels of oil equivalent. Of that 65 percent are liquids. Gas per day from the fields is MMcf. There are also two gas processing plants which are operational.
Apache paid for the assets with cash, debt and equity offerings.
BP will continue to operate the properties for Apache through November 30.
Tuesday, August 3, 2010
BP (NYSE:BP) Sells Columbian Business, Raising $1.9 Billion
As part of the strategy of BP (NYSE:BP) to sell up to $30 billion in assets to raise capital to deal with the mounting claims and liabilities from the Gulf oil spill, they've sold off their Colombian business assets to a Colombian national oil company and a Canadian company.
Included in BP's assets are a transportation business, and oil and gas production.
The Canadian company buying into the assets is Talisman, which will hold 49 percent of the business, and the Ecopetrol, a national Colombian oil company, which will hold a 51 percent stake in the business.
"The two companies will pay BP a total of 1.9 billion dollars in cash ... for 100 per cent of the shares in BP Exploration Company (Colombia) Limited, the wholly-owned BP subsidiary company that holds BP's oil and gas exploration, production and transportation interests in Colombia," they said in a joint statement.
Including the recent deal with Apache (NYSE:APA), this brings the total of assets sold to just under $9 billion so far.
BP has been agressively marketing its upstream assets in Vietnam and Pakistan, with a number of companies and countries expressing an interest.
Included in BP's assets are a transportation business, and oil and gas production.
The Canadian company buying into the assets is Talisman, which will hold 49 percent of the business, and the Ecopetrol, a national Colombian oil company, which will hold a 51 percent stake in the business.
"The two companies will pay BP a total of 1.9 billion dollars in cash ... for 100 per cent of the shares in BP Exploration Company (Colombia) Limited, the wholly-owned BP subsidiary company that holds BP's oil and gas exploration, production and transportation interests in Colombia," they said in a joint statement.
Including the recent deal with Apache (NYSE:APA), this brings the total of assets sold to just under $9 billion so far.
BP has been agressively marketing its upstream assets in Vietnam and Pakistan, with a number of companies and countries expressing an interest.
Friday, July 30, 2010
HBSC (NYSE:HBC) Takes Lead on BP (NYSE:BP) Vietnam Asset Sale
BP (NYSE:BP) has hired HSBC Holdings Plc (NYSE:HBC) to help them sell their stake in the Nam Con Son natural-gas field in Vietnam. The value of the asset is close to $1.3 billion.
It's no secret BP is attempting to raise capital to fund existing and future liabilities connected to the Gulf oil spill, and they've very publicly let it be known the assets in Vietnam were available for acquisition.
Included in the Vietnam assets are a power station, pipeline and gas field.
BP recently upped the amount of assets they want to divest of to raise capital from about $10 billion to $30 billion. They garnered $7 billion of that recently with the sell of assets to Apache Corp (NYSE:APA), which included Egyptian and North American projects.
South American assets in Venezuela, Colombia and Argentina may be next on the block. Russia has already expressed some interest in the Venezuelan holdings.
Barclays Plc (NYSE:BCS) was recently hired to help sell the assets BP holds in Columbia.
India's giant exploration company, Oil & Natural Gas Corp., may team up with Vietnam Oil & Gas Group to acquire the Nam Con Son field. They already hold a 45 percent stake in the project.
It's no secret BP is attempting to raise capital to fund existing and future liabilities connected to the Gulf oil spill, and they've very publicly let it be known the assets in Vietnam were available for acquisition.
Included in the Vietnam assets are a power station, pipeline and gas field.
BP recently upped the amount of assets they want to divest of to raise capital from about $10 billion to $30 billion. They garnered $7 billion of that recently with the sell of assets to Apache Corp (NYSE:APA), which included Egyptian and North American projects.
South American assets in Venezuela, Colombia and Argentina may be next on the block. Russia has already expressed some interest in the Venezuelan holdings.
Barclays Plc (NYSE:BCS) was recently hired to help sell the assets BP holds in Columbia.
India's giant exploration company, Oil & Natural Gas Corp., may team up with Vietnam Oil & Gas Group to acquire the Nam Con Son field. They already hold a 45 percent stake in the project.
Friday, July 23, 2010
BP's (NYSE:BP) Alaskan Assets May Be On the Block Again
After some movement on other assets BP (NYSE:BP) is selling to raise capital to fund its liabilities in the Macondo Well oil spill, reports are they may be opening up talks again concerning assets it holds in Alaska, including the Prudhoe Bay oil field, which they hold a 26 percent stake in.
BP couldn't get the deal done with Apache (NYSE:APA), which seemingly wasn't willing to pay the price BP wanted, with approximately $1 billion separating the parties. BP had asked for about $10 billion and Apache was holding strong at close to $9 billion.
They did sell other assets to Apache earlier in the week for $7 billion, which were located in Egypt and North America.
This week BP also let it be known assets in Vietnam and Colombia were also for sale, which has generated significant interest, especially the Vietnam assets.
A number of government-owned oil companies are always looking out for energy assets to acquire, so BP will get a good price for those the choose to sell, even though it is known they need the cash badly.
Prudhoe Bay also had the sticking point of the right of first refusal from existing partners in the project, which include oil giants Exxon Mobil Corp. (NYSE:XOM), ConocoPhillips (NYSE:COP) and Chevron Corp. (NYSE:CVX). Exxon and Conoco have equal stakes of 36 percent and Chevron a small 2 percent stake.
BP couldn't get the deal done with Apache (NYSE:APA), which seemingly wasn't willing to pay the price BP wanted, with approximately $1 billion separating the parties. BP had asked for about $10 billion and Apache was holding strong at close to $9 billion.
They did sell other assets to Apache earlier in the week for $7 billion, which were located in Egypt and North America.
This week BP also let it be known assets in Vietnam and Colombia were also for sale, which has generated significant interest, especially the Vietnam assets.
A number of government-owned oil companies are always looking out for energy assets to acquire, so BP will get a good price for those the choose to sell, even though it is known they need the cash badly.
Prudhoe Bay also had the sticking point of the right of first refusal from existing partners in the project, which include oil giants Exxon Mobil Corp. (NYSE:XOM), ConocoPhillips (NYSE:COP) and Chevron Corp. (NYSE:CVX). Exxon and Conoco have equal stakes of 36 percent and Chevron a small 2 percent stake.
Thursday, July 22, 2010
UBS (NYSE:UBS) Raises Apache (NYSE:APA) Price Target
After the announcement that Apache Corp. (NYSE:APA) will be acquiring $7 billion in assets from BP (NYSE:BP), UBS (NYSE:UBS) raised its price target on the company to $125 a share.
Concerns over their debt rating and dilution of shares to raise capital for the deal have the stock down, even though the long-term prospects of the company are probably better with the acquisitions.
Apache closed Wednesday's session at $87.45, down $0.83, or 0.94 percent.
The deal is part of BP's strategy to raise money to pay for its liabilities and claims from the Gulf oil spill.
Concerns over their debt rating and dilution of shares to raise capital for the deal have the stock down, even though the long-term prospects of the company are probably better with the acquisitions.
Apache closed Wednesday's session at $87.45, down $0.83, or 0.94 percent.
The deal is part of BP's strategy to raise money to pay for its liabilities and claims from the Gulf oil spill.
Wednesday, July 21, 2010
Apache (NYSE:APA) Placed on Review after BP (NYSE:BP) Acquisitions
Apache Corp. (NYSE:APA) was placed on review by Fitch Ratings after their announcement of intent to acquire assets of BP (NYSE:BP) in Egypt and North America.
The total amount to be paid by Apache for both natural gas and oil fields held by BP is $7 billion. Capital will be raised by Apache via selling common shares in the company.
To be placed on review in this case means for the purpose of downgrading the company.
After the deal, the amount of leverage (aside from selling stock) will grow significantly, and could result in Apache's issuer default rating to drop from A- to BBB+.
"If Apache were to be downgraded, it would be no more than one notch," said Moody's in a statement.
The total amount to be paid by Apache for both natural gas and oil fields held by BP is $7 billion. Capital will be raised by Apache via selling common shares in the company.
To be placed on review in this case means for the purpose of downgrading the company.
After the deal, the amount of leverage (aside from selling stock) will grow significantly, and could result in Apache's issuer default rating to drop from A- to BBB+.
"If Apache were to be downgraded, it would be no more than one notch," said Moody's in a statement.
Apache (NYSE:APA) Beats Quarterly Expectations, Acquires BP (NYSE:BP) Assets
Apache Corp. (NYSE:APA) handily beat earnings and revenue expectations for the second quarter, with international operations leading the way.
Earnings for the quarter reached $860.2 million, or $2.53 a share, a 94 percent gain from the same quarter last year of $443.3 million, or $1.31 a share. Revenue increased to $2.97 billion, or 42 percent.
Estimates for earnings were at $2.31 a share, while revenue was projected to reach $2.81 billion.
Chairman and Chief Executive G. Steven Farris said about the company's performance, "We are realizing the benefit of significant discoveries and the investments Apache made to bring them on production. Apache's financial results also benefited from our balanced commodity mix at a time when oil prices remain strong relative to North American natural gas prices."
Australia assets led the way for daily production, which was elevated by 10 percent for the quarter. Oil production reached 646,866 barrels of oil equivalent, while liquid hydrocarbon grew 16 percent over last year. Natural gas production was level, gaining only one percent in the quarter over last year, although increasing five percent over the previous quarter.
Under normal conditions this would have pushed the stock price up, but the news they are purchasing $7 billion in assets from BP (NYSE:BP) pushed the share price down, evidently based on dilution concerns, as the company will sell 21 million common shares and $1.1 billion in preferred shares to generate the capital.
Apache will reportedly pay about $5 billion before the official close, which has been thrown out to be on July 30.
Earnings for the quarter reached $860.2 million, or $2.53 a share, a 94 percent gain from the same quarter last year of $443.3 million, or $1.31 a share. Revenue increased to $2.97 billion, or 42 percent.
Estimates for earnings were at $2.31 a share, while revenue was projected to reach $2.81 billion.
Chairman and Chief Executive G. Steven Farris said about the company's performance, "We are realizing the benefit of significant discoveries and the investments Apache made to bring them on production. Apache's financial results also benefited from our balanced commodity mix at a time when oil prices remain strong relative to North American natural gas prices."
Australia assets led the way for daily production, which was elevated by 10 percent for the quarter. Oil production reached 646,866 barrels of oil equivalent, while liquid hydrocarbon grew 16 percent over last year. Natural gas production was level, gaining only one percent in the quarter over last year, although increasing five percent over the previous quarter.
Under normal conditions this would have pushed the stock price up, but the news they are purchasing $7 billion in assets from BP (NYSE:BP) pushed the share price down, evidently based on dilution concerns, as the company will sell 21 million common shares and $1.1 billion in preferred shares to generate the capital.
Apache will reportedly pay about $5 billion before the official close, which has been thrown out to be on July 30.
Apache (NYSE:APA) Acquiring $7 Billion of BP (NYSE:BP) Assets
Coming on the heels of BP (NYSE:BP) aggressively shopping its assets in Pakistan and Vietnam, the deal with Apache has finally been confirmed, although for less money and assets than originally being looked for.
What was somewhat surprising, is no BP assets in Alaska were sold, which may point to them being the sticking point in prior negotiations where price was reportedly a factor in a larger deal valued at $10 billion by BP, and of which Apache had offered closer to $9 billion.
In the deal, Apache will take over assets in Egypt of an East Badr El-din exploration concession, while other assets in Texas, New Mexico, and gas projects in Western Canada and British Columbia are also included.
Combined assets account for approximately 385 million barrels of oil equivalent.
The deal is expected to be closed on July 30, and Apache will advance BP $5 billion before the close.
What was somewhat surprising, is no BP assets in Alaska were sold, which may point to them being the sticking point in prior negotiations where price was reportedly a factor in a larger deal valued at $10 billion by BP, and of which Apache had offered closer to $9 billion.
In the deal, Apache will take over assets in Egypt of an East Badr El-din exploration concession, while other assets in Texas, New Mexico, and gas projects in Western Canada and British Columbia are also included.
Combined assets account for approximately 385 million barrels of oil equivalent.
The deal is expected to be closed on July 30, and Apache will advance BP $5 billion before the close.
Tuesday, July 20, 2010
BP (NYSE:BP) Offering Pakistan and Vietnam Assets for Sale
It hasn't been a secret that BP (NYSE:BP) is looking to sell some of its assets to raise capital to pay for the increasing costs related to the Gulf oil spill, and that includes assets in Vietnam and Pakistan, which had been assumed to be part of the company's strategy.
BP confirmed that today by saying they've notified both countries to let them know they're putting the assets up for sale, although they did say there hadn't been any offers yet for them.
The asset sales, according to BP spokesman David Nicholas, would be used to build up the $20 billion escrow fund, which they've committed $5 billion a year to over the next four years.
Together the assets in Vietnam and Pakistan are estimated to be worth about $1.7 billion.
BP has been negotiating with Apache (NYSE:APA) for assets located in Alaska, which they value at about $10 billion, but which Apache reportedly only wants to pay about $9 billion for. Talks are ongoing, but there hasn't been news of a breakthrough yet related to price, or another sticking point connected to language in the proposed contract.
BP confirmed that today by saying they've notified both countries to let them know they're putting the assets up for sale, although they did say there hadn't been any offers yet for them.
The asset sales, according to BP spokesman David Nicholas, would be used to build up the $20 billion escrow fund, which they've committed $5 billion a year to over the next four years.
Together the assets in Vietnam and Pakistan are estimated to be worth about $1.7 billion.
BP has been negotiating with Apache (NYSE:APA) for assets located in Alaska, which they value at about $10 billion, but which Apache reportedly only wants to pay about $9 billion for. Talks are ongoing, but there hasn't been news of a breakthrough yet related to price, or another sticking point connected to language in the proposed contract.
Apache (NYSE:APA), Chevron (NYSE:CVX), KUFPEC in KOGAS Deal
Chevron (NYSE:CVX), Apache (NYSE:APA) and Kuwait Foreign Petroleum Exploration Co (KUFPEC), have made a deal with Korea Gas Corporation for the purpose of acquiring liquefied natural gas.
The liquefied natural gas will be acquired from Australian-based Wheatstone project in Western Australia, according to the companies involved.
KUFPEC and Apache, who have equity stakes in the fields which supply Wheatstone, have plans to sell 5 percent of those stakes.
KOGAS has committed to acquiring 1.5 million tons of liquefied natural gas annually, with 75 percent of the gas provided by Chevron, which operates Wheatstone, and close to 25 percent from KUFPEC and Apache.
The assets being sold by Apache and KUFPEC are from the Julimar and Brunello fields, which account for the 5 percent mentioned above. When completed, KOGAS will have a 5 percent stake in the overall Wheatstone project.
The liquefied natural gas will be acquired from Australian-based Wheatstone project in Western Australia, according to the companies involved.
KUFPEC and Apache, who have equity stakes in the fields which supply Wheatstone, have plans to sell 5 percent of those stakes.
KOGAS has committed to acquiring 1.5 million tons of liquefied natural gas annually, with 75 percent of the gas provided by Chevron, which operates Wheatstone, and close to 25 percent from KUFPEC and Apache.
The assets being sold by Apache and KUFPEC are from the Julimar and Brunello fields, which account for the 5 percent mentioned above. When completed, KOGAS will have a 5 percent stake in the overall Wheatstone project.
Monday, July 19, 2010
BP (NYSE:BP), Apache (NYSE:APA) Start Asset Sale Talks Up Again
A cloud had been cast over the talks between BP (NYSE:BP) and Apache (NYSE:APA) over the weekend, as it appeared the deal could have been stalled on a couple of issues.
The major sticking point was over the price of the assets, which Apache has been dealing hard on, wanting to pay about $9 billion rather than the approximate $10 billion BP is looking for.
While talks have resumed, there's no word on whether the impasse on the price has been reached, as both companies have been holding strong in that regard, although there can be no doubt time is on the side of Apache.
BP has to be careful not to give in too much either, as if they decide to sell assets in the future, it would signal the willingness to give in on price, which could greatly cut the amount they raise, and possibly force them to sell more assets than they want in order to raise the capital they need.
It's unclear if the deal will go forward if a price compromise isn't reached.
The other point that needed to be addressed was contract language, but that hasn't be revealed as to the specifics at this time.
The major sticking point was over the price of the assets, which Apache has been dealing hard on, wanting to pay about $9 billion rather than the approximate $10 billion BP is looking for.
While talks have resumed, there's no word on whether the impasse on the price has been reached, as both companies have been holding strong in that regard, although there can be no doubt time is on the side of Apache.
BP has to be careful not to give in too much either, as if they decide to sell assets in the future, it would signal the willingness to give in on price, which could greatly cut the amount they raise, and possibly force them to sell more assets than they want in order to raise the capital they need.
It's unclear if the deal will go forward if a price compromise isn't reached.
The other point that needed to be addressed was contract language, but that hasn't be revealed as to the specifics at this time.
Subscribe to:
Posts (Atom)