Anadarko (APC) Gulf Discovery is Significant

March 20, 2013 11:36 AM EDT Send to a Friend
Get Alerts CIE Hot Sheet
Price: $11.71 +2.90%

Rating Summary:
    15 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 45 | New: 4
Trade CIE Now!
Join SI Premium – FREE
Yesterday Anadarko Petroleum Corporation (NYSE: APC) announced its Shenandoah-2 well in the deepwater Gulf of Mexico encountered more than 1,000 net feet of oil pay in multiple high-quality Lower Tertiary-aged reservoirs. In the view of analysts at Deutsche Bank the implication is a major deepwater discovery for the industry with upside implications for the stocks.

Analyst Ryan Todd said, "Having already credited both CIE (NYSE: CIE) and APC NAVs for the resource associated with the initial discovery well at Shenandoah, the market will now likely de-risk additional upside to 500 mmboe in a most likely (Pmean) case with resource upside to 1,000 mmboe (P10) in the upside scenario. By our calculations, this methodology implies $1.80/shr and $2.75/shr of incremental value for CIE and APC based on today's disclosure, with upside (total estimated value for CIE and APC is $3.10/shr and $4.10/shr, respectively). For reference, every additional 100 mmboe of resource upside would equate to an estimated $0.60/shr for CIE and $0.80/shr for APC."

Deutsche Bank today maintained a Buy on Cobalt International Energy (NYSE: CIE) and raised its price target to $41.00 (from $39.00).

For an analyst ratings summary and ratings history on Cobalt International Energy (NYSE: CIE) click here. For more ratings news on Cobalt International Energy click here.

Shares of Cobalt International Energy closed at $25.79 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change

Related Entities

Deutsche Bank

Add Your Comment