Independent oil and gas producer Anadarko Petroleum Corporation (APC - Analyst Report) received $419 million from Statoil Brasil Óleo e Gás Ltda, in relation to the sale of a 50% interest in the Peregrino oil field located in Campos Basin offshore Brazil.
In 2008, Anadarko agreed to sell its 50% interest for $1.4 billion and added an agreement for an additional payment based on commodity prices. This $419 million payment fulfills the covenant. The payment came in as a New Year surprise for the company, exceeding expectations. The higher payment was attributable to the strength of Brent oil pricing and Statoil's operational success in bringing the Peregrino field online.
Anadarko is consistently working on improving its overall portfolio, and exploration and drilling programs in 2011 have earned rich dividends. The company has concentrated its operation in Africa, after the Gulf of Mexico accident, with big discoveries in Ghana and Mozambique.
In addition, in October 2011 the company finally reached a settlement with BP plc. (BP - Analyst Report) by shelling out $4 billion that released all mutual claims regarding the Deepwater Horizon explosion. In December 2011, the company decided to jointly develop the Lucius project, located in the Keathley Canyon area of the deepwater Gulf of Mexico.
We believe these initiatives will pave the way for future growth, though Anadarko had to dig deep into its pockets to fulfill the BP obligations. We believe the receipt of a windfall $419 million will definitely add to the company’s cash position.
Anadarko Petroleum currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
Based in The Woodlands, Texas, Anadarko Petroleum is primarily engaged in the exploration, development, production, gathering, processing and marketing of natural gas, crude oil, condensate and NGLs.