Canaccord Genuity Morning Coffee on Anadarko Petroleum (NYSE: APC): Shamrock Shakes for Everyone!
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Price: $18.40 -1.92%
Rating Summary:
21 Buy, 22 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
21 Buy, 22 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Anadarko Petroleum (NYSE: APC): Shamrock Shakes for everyone!
Canaccord Genuity Energy Analyst John Gerdes is raising his target price for Anadarko Petroleum due to a ~10% higher liquids allocation with no change in capital intensity, almost 10% lower per unit operating expense and the beneficial resolution to the Algerian tax dispute. Anadarko’s onshore U.S. business is ~30% more capital productive on an equivalent basis and ~15% more productive on an oil-weighted basis than its peer group. Additionally, Anadarko offers world-class deepwater exploration. Highlights from Gerdes’ report: 1) Wattenberg: In ‘12, Anadarko plans to increase activity from five to eight rigs and drill ~170 horizontal Wattenberg wells. Niobrara wells have commenced at ~800 Boepd (~70% liquids), implying ~350 Mboe (~90% NRI) recovery for ~$4.5 million; 2) Haynesville: In ’12, Anadarko plans to conduct a five-rig program and drill 60 liquids-rich Haynesville wells. Hayneville wells recover 6+ Bcfe (~35% liquids) for ~$8 million. He believes the liquids-rich Haynesville economically competes with Anadarko’s Eagle Ford; 3) Gulf of Mexico: Anadarko is sidetracking a Heidelberg appraisal (44% WI) to evaluate the down dip extent of the field, which could double the resource to ~400 Mmboe. Elsewhere, the company plans appraisals of Shenandoah (30% WI) and Vito (20% WI); 4) Deepwater upside: A potential Mozambique deal values Anadarko’s position at up to $8 billion ($16/share). The sale of 400+ Mmboe offshore Brazil for $8/Boe would generate ~$3 billion (~$6/share).
Canaccord Genuity Energy Analyst John Gerdes is raising his target price for Anadarko Petroleum due to a ~10% higher liquids allocation with no change in capital intensity, almost 10% lower per unit operating expense and the beneficial resolution to the Algerian tax dispute. Anadarko’s onshore U.S. business is ~30% more capital productive on an equivalent basis and ~15% more productive on an oil-weighted basis than its peer group. Additionally, Anadarko offers world-class deepwater exploration. Highlights from Gerdes’ report: 1) Wattenberg: In ‘12, Anadarko plans to increase activity from five to eight rigs and drill ~170 horizontal Wattenberg wells. Niobrara wells have commenced at ~800 Boepd (~70% liquids), implying ~350 Mboe (~90% NRI) recovery for ~$4.5 million; 2) Haynesville: In ’12, Anadarko plans to conduct a five-rig program and drill 60 liquids-rich Haynesville wells. Hayneville wells recover 6+ Bcfe (~35% liquids) for ~$8 million. He believes the liquids-rich Haynesville economically competes with Anadarko’s Eagle Ford; 3) Gulf of Mexico: Anadarko is sidetracking a Heidelberg appraisal (44% WI) to evaluate the down dip extent of the field, which could double the resource to ~400 Mmboe. Elsewhere, the company plans appraisals of Shenandoah (30% WI) and Vito (20% WI); 4) Deepwater upside: A potential Mozambique deal values Anadarko’s position at up to $8 billion ($16/share). The sale of 400+ Mmboe offshore Brazil for $8/Boe would generate ~$3 billion (~$6/share).
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