Anadarko Petroleum is very bullish about their future and they have exploration opportunities all over the world. As the litigation theme evolves over the next 12 months, we're confident the stock is going to rebound very nicely. The bottom line: APC is a stock you want in your portfolio right now
Boca Raton, FL (PRWEB) June 11, 2010
Like many other oil companies, Anadarko Petroleum (APC) has been severely impacted by the Gulf oil spill, and its stock price has fallen tremendously over the past few weeks. Industry analyst James DiGeorgia of the Gold and Energy Advisor (http://www.goldandenergyadvisor.com) predicts that Anadarko is poised to come back big - trading from its current price of $37.91 to as much as $75.00 or more over the next few years.
According to DiGeorgia, APC has a 25% ownership in the Deep Horizon oil platform that caused the worst man-made environmental disaster in U.S. history. However, he expects that as litigation over the oil spill evolves, BP will ultimately be responsible for all liabilities. He says investors/speculators overreacted.
"Anadarko Petroleum is very bullish about their future and they have exploration opportunities all over the world. As the litigation theme evolves over the next 12 months, we're confident the stock is going to rebound very nicely. The bottom line: APC is a stock you want in your portfolio right now," said DiGeorgia.
DiGeorgia's prediction that Anadarko Petroleum will almost double in value over the next few years is based on a number of factors:
•APC has a reserve resource base of about 10.5 billion barrels of equivalent oil (BBOE). They have an asset base of proved reserves of about 2.3 BOE. They want to develop 4.5 BOE and convert them to their reserve base and for production. Within 3 years, APC wants to increase their proven reserves from 2.3 to 3 billion BOE.
•Based on its reserves, the company should have a market cap of around $69 billion. The current market value of APC is about $21.7 billion, much lower than what the price should be based on an acquisition cost.
•In five years, the company should have 3 BOE. By then, oil prices will probably be much higher and based on its reserves, the company could have a market value of about $150 billion.
•Another valuation metric that shows APC is cheap is its stock holder equity. It's very rare to find a company whose stock holder equity is close to the value of its market capitalization.
In addition, DiGeorgia says APC has seven to nine-percent compounded annual growth in production, and it wants to replace reserves from production by 150%.
For a free special report about APC and a free 90 day trial to the Gold and Energy Advisor, visit http://www.goldandenergyadvisor.com/page/gez/free/issue.html?x=a002686-0010
About The Gold and Energy Advisor
The Gold and Energy Advisor is a monthly newsletter that covers the precious metals and energy markets, and also provides frequent updates and special reports about investing in the precious metals and energy markets via its online website and email. *All performance results are hypothetical and investors are urged to read the publications' risk disclosure statement. The Gold and Energy Advisor is edited by James DiGeorgia, who has extensive experience in precious metals and the energy markets, and is considered one of the world's foremost authorities in both areas. For a 90 day free trial online to the Gold and Energy Advisor, visit http://www.goldandenergyadvisor.com/page/gez/free/issue.html?x=a002686-0010
Reeves Laverdure PR