During the past 12 months, most energy exploration & production companies have gained in value. Noble Energy (NBL)? It’s up 20%. Apache (APA)? It’s gained 9%. EOG Resources (EOG)? It’s surged 55%. Chesapeake Energy (CHK)? It’s advanced 23%.
Reuters The there’s Anadarko Petroleum (APC). It’s shares have dropped 5% during the past year of trading, thanks to the massive potential damages linked to its Kerr-McGee purchase. That underperformance, however, has left Anadarko looking cheap, no matter how you slice the Tronox liabilities. Deutsche Bank’s Stephen Richardson and Mimi Kong explain:
[Anadarko Petroleum] stands out in this analysis as a standalone domestic E&P business trading at wide discount (25-45%) to peers. While some of the 'perceived' value gap is likely driven by uncertainty surrounding Tronox, we note that assume a Tronox liability at the very high end of a potential range ($20 Bn post-tax) would value [Anadarko's] onshore business at a still discounted multiple of 4.9x our 2015e EV/EBITDAX (our NAV implied scenario)…The asset value at [Anadarko] is clearly apparent.
Shares of Anadarko Petroleum have gained 0.2% to $82.98 today at 12:52 p.m., while Noble Energy has risen 1.6% to $67.84, Apache has advanced 1% to $81.53, EOG Resources has climbed 1.4% to $192.26 and Chesapeake Energy is up 1% at $24.96.
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