Markets
COP

5 Things Anadarko Petroleum Corporation's CEO Wants You to Know

Source: ConocoPhillips.

That chart above notes that ConocoPhillips is actually shrinking its spending on deepwater exploration and shifting it into North American unconventionals. In fact, ConocoPhillips has decided to abandon deepwater exploration entirely to focus on shale. That said, this shift does have a lot to do with the fact that ConocoPhillips has premier positions in the best shale plays, which generate those high returns, while Anadarko's shale position isn't quite as strong. Instead, its strength actually lies in deepwater exploration , which is why it is focusing on that area.

5. We'll be focused on growth when the time is right

Walker ended his prepared comments by saying, "And when we see value in pursuing growth, we'll be prepared to accelerate activity." Walker made it clear that Anadarko is still a growth company, but not a growth-at-all-costs company. When growth is being rewarded, Anadarko stands ready to accelerate its drilling and capture that value.

Investor takeaway

In a sense, Anadarko would rather simply tread water now rather than sink more money into growth at a time when the market doesn't need any more oil. Instead, it is focusing on improving its drilling costs, its margins, and its discipline, so that it can be in the best position to capture value in the future when the market has recovered. It's a long-term approach that it hopes will pay big dividends down the road.

The next billion-dollar iSecret

The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

The article 5 Things Anadarko Petroleum Corporation's CEO Wants You to Know originally appeared on Fool.com.

Matt DiLallo owns shares of ConocoPhillips. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

COP

Other Topics

Stocks

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More