Anadarko Petroleum Corporation (APC - Free Report) recently announced that the company has shut down its oil and gas production at two Gulf of Mexico platforms as the region is hit by a tropical storm called Gordon. The company has taken reasonable steps to evacuate its battery of staff and halted output from the hub ahead of the natural calamity. The company have decided to temporarily shut down Horn Mountain and Marlin platforms in Gulf of Mexico as a precautionary measure.
Impact of Hurricane
Anadarko Petroleum boasts 10 oil and gas production facilities across the Gulf of Mexico, a hurricane prone region. These facilities produce in excess of 160,000 barrels of oil equivalent per day (BOE/d).
Its offshore oil and gas production witnessed deferred output during the second half of 2017 on account of Hurricanes like Harvey, Irma and Nate. The current hurricane, Tropical Storm Gordon, tore through the Gulf of Mexico on Monday following which, the company’s production was stopped for the day.
Considering people’ safety, we can expect the production to remain stalled for now and resume in a few days. However, taking Anadarko Petroleum’s total production into account from the Gulf of Mexico region, the impact of this shutdown is expected to be minimal. Horn Mountain currently produces nearly 8,000 barrels of oil per day and Marlin was scheduled to produce first oil in the third quarter.
More Hurricanes Are Expected
Per National Hurricane Center, the Atlantic hurricane season marks the period of its arrival from Jun 1 to Nov 30 with the peak spell starting early August through the end of October. Also, as of Aug 9, 2018, National Oceanic and Atmospheric Administration (NOAA) predicted a below-average season of catastrophes with 9 to 13 named storms, 4 to 7 hurricanes and less than 2 major hurricanes for the remainder of 2018.
Zacks Rank & Share Price Performance
Anadarko Petroleum carries a Zacks Rank #3 (Hold). In a year’s time, shares of the company have soared 56.2%, outperforming its industry’s 20.5% growth.
Some better-ranked stocks in the same industry are Denbury Resources Inc. (DNR - Free Report) , Northern Oil and Gas, Inc. (NOG - Free Report) and Southwestern Energy Company (SWN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Denbury Resources surpassed estimates in all the trailing four quarters with an average beat of 162.86%. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 17.5% upward over the past 30 days to 47 cents per share.
Northern Oil and Gas beat estimates in each of the preceding four quarters with an average positive surprise of 138.54%. The stock has seen the consensus estimate for current-year earnings being raised 13% over the past 30 days to 52 cents per share.
Southwestern Energy outpaced estimates in three of the last four quarters with an average earnings surprise of 6.48%. The stock has seen the consensus mark for current-year earnings being moved 7.3% north over the past 30 days to 88 cents per share.
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