Oppenheimer Cuts Target on Anadarko (APC), Keeps Outperform Rating

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Oppenheimer cut their price target on Outperform-rated Anadarko Petroleum (NYSE: APC) from $100 to $90 following the settlement with BP for $4 billion for the GoM oil spill and a tax dispute win with Algeria for a $1.7B refund.

The analyst comments: We believe the Tronox potential liability has overshadowed Anadarko's two large gas discoveries offshore Mozambique, exploration success and potential in deepwater GOM and west Africa, and the potential impact from its 8 million fee land acres onshore the US on its valuation. A settlement with Tronox would remove uncertainty, which depressed the stock in the last six months. Based on 498M shares outstanding and 40% tax rate, each $1B for settlement impacts APC's earnings by $1.20/share. We are updating estimates and lowering our price target to $90 from $100, to reflect updated guidance and the drop in commodity prices in recent months.

For an analyst ratings summary and ratings history on Anadarko Petroleum click here. For more ratings news on Anadarko Petroleum click here.

Shares of Anadarko Petroleum closed at $68.22 yesterday, with a 52 week range of $56.42-$88.70.

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