Anadarko's (APC) BP Settlement Removes a Key Overhang - Goldman Sachs

Goldman Sachs made positive comments on Anadarko Petroleum (NYSE: APC) following the settlement with BP (NYSE: BP) related to the Gulf oil spill. The firm said the settlement removes a major overhang.

Under the settlement, which releases damage claims, Anadarko will pay BP $4 billion and transfer its 25-percent interest in Macondo. Anadarko would remain exposed to punitive penalties. Anadarko estimates the settlement represents around $5 per share on an after-tax basis.

"We view the settlement in line to positively relative to our expectations but believe shares can outperform as the settlement removes an overhang since the Macondo incident in 1H 2010," the analyst said.

The firm reiterated their Buy rating and $97 price target.

For more ratings news on Anadarko Petroleum click here and for the rating history of Anadarko Petroleum click here.

Shares of Anadarko Petroleum closed at $70.57 yesterday.

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