Anadarko Petroleum (APC): Diving Into Deep Water - BMO
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BMO Capital analyst, Phillip Jungwirth, commented on shares of Anadarko Petroleum (NYSE: APC) after the acquisition of Deepwater Gulf of Mexico assets from Freeport McMoRan (NYSE: FCX) which was widely viewed as a compelling deal that expanded its strategic GOM footprint at an attractive valuation.
The analyst estimated that ~80% of investors he spoke with viewed the deal favorably (most were positioned long), with the following key points:
1) valuation multiple and 2P reserves accretive
2) motivated seller
3) balance sheet improvement with FCF and equity
4) U.S. onshore acceleration
5) Lucius resource potential increase
6) multi-year production targets
Shares of Anadarko Petroleum closed at $55.62 yesterday.
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