Dallas, Texas 11/01/2013 (Financialstrend) – Anadarko Petroleum Corporation (NYSE:APC) is headquartered in “The Woodlands, Texas”. It has been in operations since 1959. It engages in extraction and marketing of “natural gas, crude oil, condensate, and natural gas liquids” in the United States and internationally. Its international drilling operations are focused around “Gulf of Mexico and high-potential basins located in China, East and West Africa, Algeria, Alaska, and New Zealand.”
The $47.84 billion market capped oil major was in the news recently for positive news coming out of its drilling prospects in the Gulf. Analysts believe that its holding in the gulf will yield good results. Till last quarter, the oil firm was witnessing production of close to 300 million barrels of oil equivalent. With the latest finds, the production capacity is expected to go up significantly.
The oil firm has leveraged the latest technology available in the fracking method to efficiently extract oil and gas from resource-rich shale plays that it owns. Also, Anadarko has capitalized well on the current shale boom in the U.S. In addition to current production wells, its “Permian play” with an estimated resource potential of over one billion barrels of oil will offer attractive growth opportunities for the company.
Anadarko Petroleum is sitting on a cash chest of $4.5 billion as of Jun 30. It is putting together a road map to finance their ongoing growth projects utilizing this cash at hand. Anadarko’s strong cash flow situation has allowed it to reward its shareholders suitably. The dividend yield on the past 12 months for the stock is 0.76%.
Most of the analysts believe that the stock will outperform and has the potential to go beyond the 52 week high of $98.47 when the company announces its third quarter operation results. Investors with a medium term perspective can expect double digit returns.