Anadarko Petroleum (APC), Oasis Petroleum Inc. (OAS), Cameron (CAM), Halliburton (HAL), Marathon Petroleum (MPC), Transocean (RIG) and Whiting Petroleum Co. (WLL) had ratings and price targets on them adjusted by analysts.
CLSA upgraded Anadarko Petroleum (APC) from an "Outperform" rating to a "Buy" rating.
Pritchard upgraded Oasis Petroleum Inc. (OAS) from a "Neutral" rating to a "Buy" rating.
Raymond James downgraded Cameron (CAM) from a "Strong-Buy" rating to a "Market Perform" rating.
Raymond James downgraded Halliburton (HAL) from an "Outperform" rating to a "Market Perform" rating.
Deutsche Bank downgraded Marathon Petroleum (MPC) from a "Buy" rating to a "Hold" rating.
Raymond James downgraded Transocean (RIG) from a "Strong-Buy" rating to a "Market Perform" rating.
CLSA downgraded Whiting Petroleum Co. (WLL) from an "Outperform" rating to a "Buy" rating.
Showing posts with label Anadarko. Show all posts
Showing posts with label Anadarko. Show all posts
Monday, April 16, 2012
Friday, May 27, 2011
Petrobras (PBR) (APC) (RIG) (RDS-A) (CAM) Jump While Oil Futures Pull Back
Petrobras (NYSE:PBR), Anadarko (NYSE:APC), Transocean (NYSE:RIG), Royal Dutch Shell (NYSE:RDS-A) and Cameron International (NYSE:CAM) all closed up Thursday, bucking the trend of oil futures pulling back after climbing over $101 a barrel on Wednesday.
Obama's economy continues to crumble as first-time unemployment claims surged by close to 10,000, exploding past the anticipated decline of 4,000 economists had been expecting. That is a seasonally adjusted 424,000 for the week ended May 21.
The U.S. economy growth rate was also worst than expected, growing at a very weak 1.8 percent rate in the first quarter, falling from the 3.1 percent growth rate in the fourth quarter, and missing the 2.2 percent growth rate economists had projected.
The U.S. Labor Department also upwardly revised initial unemployment claims from the last report they issued.
All of this had an impact on oil prices, as oil futures ended lower Thursday. Light, sweet crude for July delivery settled down $1.09, or 1.1 percent, to $100.23 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled up 12 cents, or 0.1 percent, to $115.05 a barrel.
Front-month June reformulated gasoline blendstock, settled up 3.21 cents, or 1.1 percent, to $3.0483 a gallon. June heating oil was up 0.26 cent, or 0.1 percent, to $2.9829 a gallon.
With the Memorial Day weekend coming in the U.S., which usually involves heavy travel and usage of gasoline in vehicles, it probably counteracted the slightly lower price of oil and gas heading into the summer season.
Petrobras closed Thursday at $34.15, gaining $0.50, or 1.49 percent. Cameron International closed at $48.33, up $0.56, or 1.17 percent. Royal Dutch Shell soared to $70.28, surging $1.27, or 1.84 percent. Transocean ended the session at $69.36, rising $0.30, or 0.43 percent. Anadarko closed at $77.89, up $0.67, or 0.87 percent.
Obama's economy continues to crumble as first-time unemployment claims surged by close to 10,000, exploding past the anticipated decline of 4,000 economists had been expecting. That is a seasonally adjusted 424,000 for the week ended May 21.
The U.S. economy growth rate was also worst than expected, growing at a very weak 1.8 percent rate in the first quarter, falling from the 3.1 percent growth rate in the fourth quarter, and missing the 2.2 percent growth rate economists had projected.
The U.S. Labor Department also upwardly revised initial unemployment claims from the last report they issued.
All of this had an impact on oil prices, as oil futures ended lower Thursday. Light, sweet crude for July delivery settled down $1.09, or 1.1 percent, to $100.23 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled up 12 cents, or 0.1 percent, to $115.05 a barrel.
Front-month June reformulated gasoline blendstock, settled up 3.21 cents, or 1.1 percent, to $3.0483 a gallon. June heating oil was up 0.26 cent, or 0.1 percent, to $2.9829 a gallon.
With the Memorial Day weekend coming in the U.S., which usually involves heavy travel and usage of gasoline in vehicles, it probably counteracted the slightly lower price of oil and gas heading into the summer season.
Petrobras closed Thursday at $34.15, gaining $0.50, or 1.49 percent. Cameron International closed at $48.33, up $0.56, or 1.17 percent. Royal Dutch Shell soared to $70.28, surging $1.27, or 1.84 percent. Transocean ended the session at $69.36, rising $0.30, or 0.43 percent. Anadarko closed at $77.89, up $0.67, or 0.87 percent.
Friday, September 3, 2010
Call Buyers Crush on Anadarko (NYSE:APC)
Rumors are flying that BHP Billiton (NYSE:BHP) is not just interested in fertilizer and Potash Corp. (NYSE:POT), but may be eyeing up Anadarko Petroleum (NYSE:APC) as well.
Shares of Anadarko surged yesterday after the reports came out, rising above 5 percent at one time, but drawing back and closing at $50.24, gaining $1.45, or 2.97 percent at the end of the trading session.
Call volume were the heaviest for Anadarko for the September $55 strike, with over 9,000 contracts being exchanged by a little after noon EDT. Close to 4,000 of those were acquired at an average premium of $0.51 apiece.
For the September $52.5 strike, call buyers bought close to 2,000 calls at a premium of $1.01 each. Another 2,900 calls now in-the-money calls were scooped up at the September $50 strike for an average premium of $1.85 each.
Interestingly, the frenzy continued into the November $55 strike, where traders acquired about calls for an average premium of $2.29 each.
If the acquisition rumors persist, or if they're confirmed to be true by a bid from BHP, calls should shoot higher before the expiration.
Shares of Anadarko surged yesterday after the reports came out, rising above 5 percent at one time, but drawing back and closing at $50.24, gaining $1.45, or 2.97 percent at the end of the trading session.
Call volume were the heaviest for Anadarko for the September $55 strike, with over 9,000 contracts being exchanged by a little after noon EDT. Close to 4,000 of those were acquired at an average premium of $0.51 apiece.
For the September $52.5 strike, call buyers bought close to 2,000 calls at a premium of $1.01 each. Another 2,900 calls now in-the-money calls were scooped up at the September $50 strike for an average premium of $1.85 each.
Interestingly, the frenzy continued into the November $55 strike, where traders acquired about calls for an average premium of $2.29 each.
If the acquisition rumors persist, or if they're confirmed to be true by a bid from BHP, calls should shoot higher before the expiration.
Wednesday, August 25, 2010
BP (NYSE:BP) Stock Trading, Shares Fall 18.4%
Despite the optimism over BP's (NYSE:BP) success with the Macondo well, amid the company's stock trading, share prices continues to fall. There was a rebound of BP's stock prices at the end of July into August, but investors are now cashing in their profits.
In the last 12 trading days, the company has taken a nose dive of 18.4 percent. Yesterday the shares declined $1.20 or 3.3 percent to $34.92. During the same time frame, the Amex Oil & Gas Index slid 8.7 percent, that of which BP is a component. While BP led the oil stock drop yesterday, other companies including Exxon Mobil, Chevron, Anadarko, and Conoco Philips all lost over a percent.
There is still much uncertainty with BP, and analysts are saying they are very concerned over what will come next for the company. If Federal Investigators decide the company was negligent, the company's expenses could see a considerable jump. BP has already paid out over $6 billion.
It would also bump up the Federal fine from $4.9 billion to $17.6 billion. As well as let the company's partners, Anadarko and Mitsui off the hook from their 25 percent and 10 percent stakes in the well.
In the last 12 trading days, the company has taken a nose dive of 18.4 percent. Yesterday the shares declined $1.20 or 3.3 percent to $34.92. During the same time frame, the Amex Oil & Gas Index slid 8.7 percent, that of which BP is a component. While BP led the oil stock drop yesterday, other companies including Exxon Mobil, Chevron, Anadarko, and Conoco Philips all lost over a percent.
There is still much uncertainty with BP, and analysts are saying they are very concerned over what will come next for the company. If Federal Investigators decide the company was negligent, the company's expenses could see a considerable jump. BP has already paid out over $6 billion.
It would also bump up the Federal fine from $4.9 billion to $17.6 billion. As well as let the company's partners, Anadarko and Mitsui off the hook from their 25 percent and 10 percent stakes in the well.
Wednesday, August 4, 2010
BP (NYSE:BP) Says Pay: Bills Mitsui $480 Million
BP (NYSE:BP) has billed Mitsui $480 million for their share of the oil cleanup costs caused by the oil spill. Mitsui has not paid and it remains unclear if they actually will or not. The company, "will study and determine whether or not it should pay," said chief financial officer Junichi Matsumoto.
BP's soon to be chief executive officer Robert Dudley, has stated that he has full intentions to "vigorously" pursue the partners. The company has incurred charges of $3.2 billion relating to the leak. Mitsui owns a 10 percent stake while Anadarko owns 25 percent.
Anadarko's stance has remained the same from the beginning, we're not paying. Anadarko's chief executive officer Jim Hackett said, "Under the joint operating agreement, no party is required to pay any cost or damages to the operator to the extent that they are incurred as a result of the operators gross negligence or willful misconduct."
BP's soon to be chief executive officer Robert Dudley, has stated that he has full intentions to "vigorously" pursue the partners. The company has incurred charges of $3.2 billion relating to the leak. Mitsui owns a 10 percent stake while Anadarko owns 25 percent.
Anadarko's stance has remained the same from the beginning, we're not paying. Anadarko's chief executive officer Jim Hackett said, "Under the joint operating agreement, no party is required to pay any cost or damages to the operator to the extent that they are incurred as a result of the operators gross negligence or willful misconduct."
Anadarko (NYSE:APC) Board Declares Quarterly Cash Dividend
On the heels of their quarterly earnings report, the Board of Directors of Anadarko Petroleum Corporation (NYSE:APC) declared a quarterly cash dividend.
Dividends on the outstanding common stock, will be for shareholders of record at the close of business on September 8, 2010, and payable on September 22, 2010.
The dividend paid will be 9 cents a share.
Taking into account the number of outstanding shares in the company, Anadarko will pay out about $44.9 million in dividends.
Dividends on the outstanding common stock, will be for shareholders of record at the close of business on September 8, 2010, and payable on September 22, 2010.
The dividend paid will be 9 cents a share.
Taking into account the number of outstanding shares in the company, Anadarko will pay out about $44.9 million in dividends.
Friday, July 23, 2010
BP (NYSE:BP) Oil Partners Point Fingers At Hearing
There was a Senate Subcommittee hearing yesterday, BP's (NYSE:BP) oil partners in the Macondo Well distanced themselves from BP. Its investment partners are Anadarko, who owns a 25 percent stake and Mitsui owning a 10 percent stake in the well. Both companies are pointing the finger back to BP who's stake is 65 percent, saying the company was negligent in the days leading up to the explosion and sinking of the Deepwater Horizon.
James Hackett, chief executive of Anadarko said, "Our view is that this accident was preventable." They insist there is public information that clearly shows BP's negligent behavior and willful misconduct. Which Anadarko expects will clear them of all responsibility. While Mitsui has stated that they will wait until investigations are complete before making any decisions on payments.
At the hearing, executives for both companies said they were prepared and would pay if obligated. Both companies did make clear though that the procedure in cases like this put the financial responsibility upfront on the operating partner, which would be BP. Then seek contributions from the non-operating partners.
BP has billed its partners over $1 billion so far but the companies are refusing to pay. Members of the subcommittee were not pleased and said that Anadarko and Mitsui should, at the very least, set up escrow account to prove they have the funds and are wiling to pay.
James Hackett, chief executive of Anadarko said, "Our view is that this accident was preventable." They insist there is public information that clearly shows BP's negligent behavior and willful misconduct. Which Anadarko expects will clear them of all responsibility. While Mitsui has stated that they will wait until investigations are complete before making any decisions on payments.
At the hearing, executives for both companies said they were prepared and would pay if obligated. Both companies did make clear though that the procedure in cases like this put the financial responsibility upfront on the operating partner, which would be BP. Then seek contributions from the non-operating partners.
BP has billed its partners over $1 billion so far but the companies are refusing to pay. Members of the subcommittee were not pleased and said that Anadarko and Mitsui should, at the very least, set up escrow account to prove they have the funds and are wiling to pay.
Wednesday, July 14, 2010
Mitsui Tells BP (NYSE:BP), We're Not Paying Bill
It seems Mitsui is following suite with Anadarko telling BP (NYSE:BP), we're not paying the bill. BP sent the bill last month requesting $111 million for oil cleanup costs and legal claims associated with the spill.
Mitsui owns a 10 percent stake in the Macondo well, Anadarko's stake is 25 percent. Normally all companies owning a stake in a well are required by law to pay their share, if there is an oil spill. It will be some time before BP sees any money from their partners. They are claiming legally they are absolved from all financial responsibility. Due to the fact BP was negligent and reckless in their behavior. Leading up to the explosion and resulting in the sinking of the Deepwater Horizon.
A Mitsui spokesman said while the cause of the accident continues to be investigated by the government, they are issuing an independent review into the reimbursement claims. He said,
" Therefore, we are withholding reimbursements of BP's invoices, other than with respect to the non-incident costs at this time."
BP spokesman, Andrew Gowers said, " We are disappointed that they too are failing to live up to their responsibilities. We won't be distracted from fulfilling our own." Gowers wouldn't comment on weather BP would try and force them to pay. He did say, if the company wanted to pursue such an act, according to the joint operating agreement, they would have to pursue any disputes through an outside arbitrator.
Mitsui owns a 10 percent stake in the Macondo well, Anadarko's stake is 25 percent. Normally all companies owning a stake in a well are required by law to pay their share, if there is an oil spill. It will be some time before BP sees any money from their partners. They are claiming legally they are absolved from all financial responsibility. Due to the fact BP was negligent and reckless in their behavior. Leading up to the explosion and resulting in the sinking of the Deepwater Horizon.
A Mitsui spokesman said while the cause of the accident continues to be investigated by the government, they are issuing an independent review into the reimbursement claims. He said,
" Therefore, we are withholding reimbursements of BP's invoices, other than with respect to the non-incident costs at this time."
BP spokesman, Andrew Gowers said, " We are disappointed that they too are failing to live up to their responsibilities. We won't be distracted from fulfilling our own." Gowers wouldn't comment on weather BP would try and force them to pay. He did say, if the company wanted to pursue such an act, according to the joint operating agreement, they would have to pursue any disputes through an outside arbitrator.
Monday, July 12, 2010
BP (NYSE:BP): Share Prices, Oil Futures, Energy Stocks
Based on the optimism that Apache Corporation may purchase about $12 billion of BP's (NYSE:BP) assets, BP's shares saw another incline. BP's reasoning for this possible sale is to help raise $10 billion to help cover the cost from the devastating explosion and sinking of the Deepwater Horizon rig.
BP saw a 5.6 percent increase to $35.96, continuing last weeks surge of 13 percent. Even though it's reported that the BP bill has reached over $3.5 billion. This lift in stock prices has helped raise energy stocks across the board. Anadarko rose 2 percent to $46.43. In an emailed statement to Dow Jones Wires, John Christiansen, Anadarko's spokesman said, " We have notified BP that we are withholding reimbursements to BP at this time."
While Apache Corporation declined 2.2 percent to $85.95. An analysts from Tudor Pickering Holt said that if Apache were to continue ahead with their possible move, it would prove their track record of purchasing mature assets and wringing the profits from them. " APA made their company buying mature assets from majors and making them work stronger/harder/longer. So it shouldn't surprise if they are hunting BP's Prudhoe assets, as reported in various newspapers over the weekend," said the analyst from Tudor Pickering Holt.
The New York Stock Exchange Arca Oil Index rose 0.7 percent to 952. While The Philadelphia Oil Service Index increased 0.6 percent to 179. The New York Stock Exchange Arca Natural Gas Index inclined 0.3 percent to 511.
BP saw a 5.6 percent increase to $35.96, continuing last weeks surge of 13 percent. Even though it's reported that the BP bill has reached over $3.5 billion. This lift in stock prices has helped raise energy stocks across the board. Anadarko rose 2 percent to $46.43. In an emailed statement to Dow Jones Wires, John Christiansen, Anadarko's spokesman said, " We have notified BP that we are withholding reimbursements to BP at this time."
While Apache Corporation declined 2.2 percent to $85.95. An analysts from Tudor Pickering Holt said that if Apache were to continue ahead with their possible move, it would prove their track record of purchasing mature assets and wringing the profits from them. " APA made their company buying mature assets from majors and making them work stronger/harder/longer. So it shouldn't surprise if they are hunting BP's Prudhoe assets, as reported in various newspapers over the weekend," said the analyst from Tudor Pickering Holt.
The New York Stock Exchange Arca Oil Index rose 0.7 percent to 952. While The Philadelphia Oil Service Index increased 0.6 percent to 179. The New York Stock Exchange Arca Natural Gas Index inclined 0.3 percent to 511.
Friday, July 9, 2010
Anadarko (NYSE:APC) Says They're Not Paying Bill From BP (NYSE:BP)
BP (NYSE:BP) sent two of their partners in the Macondo well, Anadarko (NYSE:APC) and Mitsui, bills requesting them to pay their share of the costs incurred. BP requested the payment be made 30 days from receipt or by Friday, Anadarko has refused to pay the almost $272 million requested. Anadarko owns a 25 percent stake in the company, while Mitsui owns 10 percent.
According to the joint operating agreement, if BP is found to be reckless or negligent in the events that lead up to and caused the explosion and sinking of the Deepwater Horizon rig, it would absolve Anadarko completely. This is the stance they have taken since there was first talk about the requirements of other companies involved.
John Christiansen, Anadarko spokesman said, "Multiple proceedings and independent investigations are under way into BP's actions and decisions on the rig. Although we have notified BP that we are withholding reimbursement to BP at this time, we remain committed to working with BP in good faith."
Mark Salt, BP spokenman said, "They have failed to live up to their obligations." BP said they were disappointed and will be considering their options on the next move. Mitsui hasn't responded to BP yet. They have until July 12th to pay.
According to the joint operating agreement, if BP is found to be reckless or negligent in the events that lead up to and caused the explosion and sinking of the Deepwater Horizon rig, it would absolve Anadarko completely. This is the stance they have taken since there was first talk about the requirements of other companies involved.
John Christiansen, Anadarko spokesman said, "Multiple proceedings and independent investigations are under way into BP's actions and decisions on the rig. Although we have notified BP that we are withholding reimbursement to BP at this time, we remain committed to working with BP in good faith."
Mark Salt, BP spokenman said, "They have failed to live up to their obligations." BP said they were disappointed and will be considering their options on the next move. Mitsui hasn't responded to BP yet. They have until July 12th to pay.
Anadarko (NYSE:APC) Tells BP (NYSE:BP) Won't Pay Oil Spill Bill
Even though Bp (NYSE:BP) continues to send their partner in the Macondo oil well, Anadarko Petroleum (NYSE:APC), bills for the Gulf oil spill, Anadarko continues to tell them they aren't going to pay anything because it was recklessness on the part of BP which led to the disaster.
Anadarko has a 25 percent stake in the Macondo well, and Japan-based Mitsui has a 10 percent stake, with BP holding the remaining 65 percent of the project.
So far the liability Anadarko has from BP's viewpoint is over $270 million.
According to Anadarko spokesman John Christiansen, he said on Friday that the company let BP know there would be no payment coming their way.
The agreement between the two companies does show Anadarko would have to pay for 25 percent of the costs.
Anadarko has a 25 percent stake in the Macondo well, and Japan-based Mitsui has a 10 percent stake, with BP holding the remaining 65 percent of the project.
So far the liability Anadarko has from BP's viewpoint is over $270 million.
According to Anadarko spokesman John Christiansen, he said on Friday that the company let BP know there would be no payment coming their way.
The agreement between the two companies does show Anadarko would have to pay for 25 percent of the costs.
Tuesday, July 6, 2010
Anadarko (NYSE:APC) Trading Stopped To Prevent Market Crash
Trading of Anadarko (NYSE:APC) shares was stopped this morning to prevent a market crash. There was a trade that triggered new individual stock breaker rules on the New York Stock Exchange.
Anadarko's trading was stopped from 10:56 am to 11:01 am. What spawned it was a trade that valued Anadarko's shares at $99,999.9 said Ray Pellecchia, New York Stock Exchange Euronext spokesman. The trade was canceled at 11:03 am and did not cause any other trades for the stock at the same price said Pellecchia.
This is the third time the NYSE has had to stop trading of a stock after several bad trades were thought to cause a short market crash back in May of this year.
"We are still learning from the experience. In all three cases, trading was suspended before the erroneous trades could cause broader effects in the market. The first two suspended stocks were Citigroup Inc. and Washington Post Co., said Pellecchia." Once trading commenced, Anadarko closed seeing a rise of 57 cents to $38.64.
Anadarko's trading was stopped from 10:56 am to 11:01 am. What spawned it was a trade that valued Anadarko's shares at $99,999.9 said Ray Pellecchia, New York Stock Exchange Euronext spokesman. The trade was canceled at 11:03 am and did not cause any other trades for the stock at the same price said Pellecchia.
This is the third time the NYSE has had to stop trading of a stock after several bad trades were thought to cause a short market crash back in May of this year.
"We are still learning from the experience. In all three cases, trading was suspended before the erroneous trades could cause broader effects in the market. The first two suspended stocks were Citigroup Inc. and Washington Post Co., said Pellecchia." Once trading commenced, Anadarko closed seeing a rise of 57 cents to $38.64.
Thursday, July 1, 2010
Anadarko (NYSE:APC) May Be Liable for Gulf Spill
Although I've never felt that Anadarko (NYSE:APC) would completely be cleared of any liability in the Gulf oil spill, even with their aggressive stance against BP (NYSE:BP), whom they've labeled as "reckless" in the incident.
Anadarko has been working hard to position themselves outside the responsibility circle related to the accident, but that could come crumbling down around them, as a report from the Financial Times said that the company had approved of the major well designs for the Macondo area, and was also aware of the key operational decisions being made in reference to the project.
BP has been pushing for their partners in the well to start coughing up some money, even sending them bills for the damages. It was at about that time that Anadarko started to take shots at BP, focusing on their admitted mistakes.
That seemed to be a warning itself concerning Anadarko, as that big of a push had to come from concerns they were exposed to some liability concerning the well.
If the report is accurate, it's difficult to see how they could escape without paying out a significant amount of money, as they're 25 percent owner in the oil well.
Investors felt that way too, as the company finished the trading session at $36.09 a share, a $.58 drop, or 1.58 percent.
Anadarko has been working hard to position themselves outside the responsibility circle related to the accident, but that could come crumbling down around them, as a report from the Financial Times said that the company had approved of the major well designs for the Macondo area, and was also aware of the key operational decisions being made in reference to the project.
BP has been pushing for their partners in the well to start coughing up some money, even sending them bills for the damages. It was at about that time that Anadarko started to take shots at BP, focusing on their admitted mistakes.
That seemed to be a warning itself concerning Anadarko, as that big of a push had to come from concerns they were exposed to some liability concerning the well.
If the report is accurate, it's difficult to see how they could escape without paying out a significant amount of money, as they're 25 percent owner in the oil well.
Investors felt that way too, as the company finished the trading session at $36.09 a share, a $.58 drop, or 1.58 percent.
Monday, June 28, 2010
Shell Oil (LSE:RDSA) Reaches Gulf Deal With Noble
Shell Oil (LSA:RDSA) has reached a deal with Noble Corp. that gives them $4 billion of new contracts. Noble is also purchasing Frontier Drilling, a privately held company for $2.16 billion in cash.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Wednesday, June 23, 2010
Anadarko (NYSE:APC) Bonds Hit Hard
Anadarko Petroleum's (NYSE:APC) bond market have been hit hard. This drop happened after Moody decreased its credit rating of Anadarko one level to Bb1. This is one step below investment grade.
The securities due in 2016 were at 5.95 percent, the decline of 2.7 cents brought it to 88.1 cents on the dollar, yielding 8.45 percent. The day before the spill April 19th, the notes traded at 110.9 cents and then fell to 87.5 cents on the dollar.
Robert Gwin, chief financial advisor for Anadarko said the downgrade, "is very disappointing and surprising in light of Anadarko's limited role as a non-operating investor in the Macondo well."
Brookfield's Levington said, "I think the credit markets have downgraded all of the spill companies by several notches. The ratings agencies are trying to catch up with what the markets have already done."
Tuesday, June 22, 2010
Shell (LSE:RDSA) Penalized By Bond Market, 2.75 Billion Debt Offering
In a 2.75 billion dollar debt offering, Shell (LSE:RDSA) received penalties by the bond market. Anadarko's notes saw a significant decline as fear mounts that profits will fall across the oil industry due to the worst U.S. oil spill in history.
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
BP (NYSE:BP), Anadarko (NYSE:APC) May Arbitrate
The battle between BP (NYSE:BP) and Anadarko (NYSE:APC) may go down to being arbitrated, as the two battle over who may have to pay out billions over the oil spill in the Gulf of Mexico.
Anadarko, who owns a 25 percent stake in the well, would get hit the most of the two partners besides BP in the well, as Japanese oil giant Mitsui holds only a 10 percent stake, although that could end up costing billions if the worst case scenario is even close to playing out.
For now though, Anadarko is in the sights of BP, and they're pushing it as far as they can to get a decision made.
It may even be illegal for the two companies to litigate the dispute, as anything being fought over which is over $500,000 has been included in a provision of the partnership agreement, according to a regulatory filing by Anadarko.
This isn't to say it can't be litigated, but it does complicate the picture, and if the two entities trust those doing the arbitrating, it is a quicker and less expensive resolution to the problem.
Anadarko, who owns a 25 percent stake in the well, would get hit the most of the two partners besides BP in the well, as Japanese oil giant Mitsui holds only a 10 percent stake, although that could end up costing billions if the worst case scenario is even close to playing out.
For now though, Anadarko is in the sights of BP, and they're pushing it as far as they can to get a decision made.
It may even be illegal for the two companies to litigate the dispute, as anything being fought over which is over $500,000 has been included in a provision of the partnership agreement, according to a regulatory filing by Anadarko.
This isn't to say it can't be litigated, but it does complicate the picture, and if the two entities trust those doing the arbitrating, it is a quicker and less expensive resolution to the problem.
Friday, June 18, 2010
Anadarko (NYSE:APC): BP Is To Blame, Don't Look To Us
Anadarko (NYSE:APC) has seemed quite confident since the sinking of the Deepwater Horizon that they would not be held responsible. Many experts believe Anadarko as well as Mitsui & Co. should be putting money aside for their share of the responsibility of claims, said U.S. Representative Edward Markey.
The companies should be "contributing to any fund that is constructed for any part of the reconstruction. They cannot escape responsibility," said Markey. He also said he would fire BP's Chief Executive Officer Tony Hayward. Before a House panel yesterday, there was seven hours of testimony heard, Hayward was reamed by lawmakers. Anadarko owns a 25 percent stake, Mitsui owns a 10 percent stake in the Gulf project.
BP partners are considered investors "for better or for worse," said Markey. So they should be prepared as a partner to bear their part of the stake. Jim Hackett, Anadarko's Chief Executive Officer said today that his company will be looking to BP to pay all claims as a result of the oil spill. Hackett continued, there are documents showing that BP failed to heed "several critical warning signs" during drilling and "caused the accident by "reckless decisions and actions."
A Mitsui Oil Exploration subsidiary said,"with regard to the issue of the escrow account, drawing an immediate conclusion about the underlying matters at hand would be premature."
The companies should be "contributing to any fund that is constructed for any part of the reconstruction. They cannot escape responsibility," said Markey. He also said he would fire BP's Chief Executive Officer Tony Hayward. Before a House panel yesterday, there was seven hours of testimony heard, Hayward was reamed by lawmakers. Anadarko owns a 25 percent stake, Mitsui owns a 10 percent stake in the Gulf project.
BP partners are considered investors "for better or for worse," said Markey. So they should be prepared as a partner to bear their part of the stake. Jim Hackett, Anadarko's Chief Executive Officer said today that his company will be looking to BP to pay all claims as a result of the oil spill. Hackett continued, there are documents showing that BP failed to heed "several critical warning signs" during drilling and "caused the accident by "reckless decisions and actions."
A Mitsui Oil Exploration subsidiary said,"with regard to the issue of the escrow account, drawing an immediate conclusion about the underlying matters at hand would be premature."
Monday, June 14, 2010
Anadarko's (NYSE:APC) Fuel Spill Containment Responsibilities
While so many people are focused on BP, Halliburton, and Transocean, many are forgetting about Anadarko's (NYSE:APC) fuel spill containment responsibilities.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Thursday, June 10, 2010
Crude Oil Futures Trading: Anadarko (NYSE:APC), Transocean (NYSE:RIG), Halliburton (NYSE:HAL), Cameron (NYSE:CAM), BP (NYSE:BP)
After seeing oil shares drop so sharply yesterday, todays crude oil futures trading prices have seen an increase in not only BP (NYSE:BP), but also Anadarko (NYSE:APC),
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
Subscribe to:
Posts (Atom)