On May 17, 2013 shares of
Anadarko Petroleum Corporation
) touched a new 52-week high of $90.46. The company's
high-quality exploration programs in the Gulf of Mexico (GoM) and
West African prospects drove the stock to a new high. Anadarko
recorded earnings surprises in the last four quarters with an
average beat of 17.08%.
The company's notable high-end programs in 2012 that primarily
propelled earnings include the oil discoveries in Ghana and Cote
d'Ivoire and natural gas discovery in Mozambique. This has helped
in expanding the company's reserve portfolio.
The joint venture agreements for the development of the Lucius
project with an undisclosed party and the Salt Creek field
project with Linn Energy, LLC were also significant highlights.
Successful appraisals in the deepwater GoM and assets in Africa
drove the healthy performance at Anadarko Petroleum last
The company's onshore assets in the Wattenberg, Eagleford
Shale, Greater Natural Buttes, and the Marcellus Shale basins
logged in record production of 100,000 barrels of oil equivalent
(BOE) per day at the end of 2012.
Anadarko Petroleum is continuing to tap the resource-rich GoM
and African prospects through the first quarter of 2013. Year to
date, the company has signed a 12.75% interest sell-off deal with
an unnamed entity at its Heidelberg oil play which is expected to
release first oil soon. The new Phobos oil discovery in the GoM
will further spur returns, going forward.
Meanwhile, the company's sound financial position backed by
robust cash flows has aided Anadarko Petroleum to effectively
execute its exploration activities.
The present valuation also makes the shares of Anadarko
Petroleum attractive. The forward price/earnings (P/E) multiple
of 21.9x is higher than the peer group average of 17.3x,
reflecting a premium of 26.6%. In addition, Return on Equity
("ROE") of the company is 8.5%, higher than the peer group
average of 8.0%.
Currently Anadarko Petroleum holds a Zacks Rank #3 (Hold). Oil
and gas exploration stocks that are well-placed with a Zacks #1
Abraxas Petroleum Corporation
EPL Oil & Gas, Inc.
Sandridge Mississippian Trust II
Based in The Woodlands, Texas, Anadarko Petroleum Corporation
engages in the exploration, development, production, and
marketing of natural gas, crude oil, condensate, and natural gas
liquids in the United States and internationally.
ANADARKO PETROL (APC): Free Stock Analysis
ABRAXAS PETE/NV (AXAS): Free Stock Analysis
EPL OIL&GAS INC (EPL): Free Stock Analysis
SANDRDG MS T II (SDR): Free Stock Analysis
To read this article on Zacks.com click here.