...Anadarko Petroleum Corporation Strategic Analysis Name I. Introduction A) History Anadarko Petroleum Corporation is an American based organization, which is recorded as the world largest natural gas and oil exploration and Production Company. The industry was formed in 1959 as a pipeline company and continued to flourish in business until it became an oil production company in 1986. It continuously followed the trend of success up to date. It operates in southern United States, Rocky Mountains region, and Appalachian basin. Further, it is a premier deepwater producer in Mexico, and production in Algeria, Ghana, Alaska, West Africa and some parts of east Africa. According to the 2012 financial report, Anadarko delivered sales of 268 million BOE, which was an increase of 8% from 2011. By the end of 2012, the company had a reserve of 2.56 billion barrels of oil. The company is committed to safe production energy in a way that protects the environment, public health and the communities (Anadarko Petroleum Corporation, 2013). Anadarko was created in 1959 as a wholly owned subsidiary of Panhandle Eastern Pipe Line Company after the discovery of large amounts of natural gas in the Anadarko Basin, thus the company's name. Anadarko spun off from Panhandle Eastern as an independent corporation in 1986 and now has activities in more than a dozen countries. Anadarko’s NAICS code is 211111 and SIC code...
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...NEWS ANADARKO ACHIEVES NEW MOZAMBIQUE LNG MILESTONES REACHES UNITIZATION AGREEMENT WITH ENI SIGNS MEMORANDUM OF UNDERSTANDING FOR DOMESTIC GAS HOUSTON, Dec. 3, 2015 – Anadarko Petroleum Corporation (NYSE: APC) today announced that, along with the concessionaires of Offshore Area 1 (operated by Anadarko Mozambique Area 1 Ltd. (AMA1)) and Offshore Area 4 (operated by Eni East Africa (EEA)), it has signed a Unitization and Unit Operating Agreement (UUOA) for the development of the massive natural gas resources that straddle the two blocks. “We appreciate the cooperation of the Government of Mozambique, Eni and our co-venturers in Offshore Area 1 for their collaborative efforts in achieving this UUOA, which is fair, equitable and consistent with best industry practices,” said Mitch Ingram, Anadarko Executive Vice President, Global LNG. “We have already made tremendous progress advancing the natural gas resources in the Golfinho and Atum fields that are fully contained within our block, and with this UUOA, we can also expect to move the Prosperidade and Mamba straddling reservoirs forward more efficiently, while capitalizing on greater economies of scale.” Under the terms of the UUOA and previously announced Decree Law, the Prosperidade and Mamba straddling natural gas reservoirs, which comprise the Unit, will be developed in a separate but coordinated manner by the two operators until 24 trillion cubic feet (Tcf) of natural gas reserves (12 Tcf from each Area) have...
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...Business Analysis III - Anadarko Petroleum Corporation Leonard VanBerkel MGT/521 October 15, 2012 Kirk Davis Business Analysis III - Anadarko Petroleum Corporation Anadarko Petroleum Corporation (Anadarko); head office in The Woodlands, Texas, employees 4,800 people and is a Fortune 500 company with recorded revenues of $13.967 billion for fiscal year ending 2011. This represented an increase of 28% over 2010. Anadarko posted record sales volume in 2011. Contrasted against Anadarko is Exxon, which had reported revenues over the same period of $452.926 billion and was ranked number one for most profitable companies, realizing profits of $41.060 billion (CNNMoney, 2012). Anadarko is ranked 192nd whereas Exxon is ranked 1st. The most glaring difference financially between the two companies is not just the large revenue gap, but the difference in profitability. Despite achieving record sales numbers and double digit growth, Anadarko recorded a net loss of $2.649 billion for fiscal year ending 2011 (CNNMoney, 2012). There are a large number of companies in the petroleum industry that realized large profits on varying degrees of revenues in 2011, yet Anadarko showed large losses. The question that arises is why did Anadarko lose money, while so many other companies in the same industry were profitable? A SWOT (strengths, weaknesses, opportunities, threats) analysis has been performed on Anadarko to determine if it is worth investing in this company, or consider it another casualty...
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...costs incurred. Organic F&D costs per unit Equals organic F&D costs divided by the sum of (a) reserves added from extensions and discoveries and (b) revisions of previous estimates. Organic reserve replacement percentage Equals the sum of (a) reserves added from extensions and discoveries and (b) revisions of previous estimates, divided by production. Reserve life index or R/P ratio Equals the end-of-year reserve quantities divided by the current year’s production. Companies in the project and web addresses Anadarko Petroleum www.anadarko.com Apache Corp. www.apachecorp.com Chesapeake Energy www.chk.com Continental Resources www.contres.com Devon Energy www.devonenergy.com EOG Resources www.eogresources.com Southwestern Energy www.swn.com Successful Efforts Successful Efforts 1. Which accounting method for oil and gas properties is followed by each of the following companies? Full-Cost Full-Cost Anadarko Successful Efforts Successful Efforts Southwestern Continental Apache Corp Apache Corp 2. Which of the seven companies spent the most in the year 2012 for organic F&D costs? 12.58 12.58 What was the amount spent by this company (stated in billions of dollars)? Billions of dollars Devon, 2,963,000 MBoe Devon, 2,963,000 MBoe 3. Including all products (i.e., oil, bitumen, gas, NGLs), which of the seven companies had the most combined...
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...Interpreting Financial Results FIN/571 – Foundations of Corporate finance February 4, 2016 Abstract This summary examines Marathon Oil Corporation’s financial statements from the past three years. Financial ratios such as liquidity ratios, leverage ratios, and solvency ratios are discussed and interpreted against the company’s historical data and compared to industry benchmarks. The financial ratios will be used to determine the company’s current financial position how they rank compared to other industry companies. Interpreting Financial Results A financial ratio is an effective instrument that is used in conducting company analysis. These ratios are also useful in important business decision making (Hoskin, Fizzell & Cherry, 2014). There are a number of financial ratios that can be used to conduct analysis. The aspect of the financial comparisons that are under question, determines which financial ratios are best to use. Marathon Oil Corporation is an independent international company and was originally called Ohio Oil Corporation. The organization was originally established in 1887 (Marathon Oil, 2015). As of today, Marathon Oil continues to pull in profits despite the tremendous drop in oil prices. Marathon Oil functions as an energy company and operates in three segments. The company supplies products and services to both large and small organizations. Marathon Oil’s financial data, for years 2014, 2013, and 2012 shown below, provides a clear...
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...resources that are available in the United States would help the US become independent and bring our debt down. Deciding whether to drill or not to drill in the United States versus importing fuel is very debatable. People argue that drilling for oil in the U.S. is a way to create economic and political independence. The people who are opposed to drilling for oil in the U.S. are saying that doing so will hurt the environment. The United States should ease limits on natural gas exploration and clear a backlog of 5,000 drilling permit applications to lower fuel prices, industry leaders said. The United States has gas supplies that might last 177 years "if the restrictions can be lifted," James Hackett, chief executive of gas producer Anadarko Petroleum Corp., said at the National Press Club in Washington. Speeding approvals for drilling on federal lands and building liquefied natural gas import terminals would help industries that need competitively priced energy, said Daniel DiMicco, CEO of steelmaker Nucor Corp. "At the end of the day, we've got to make a decision," Mr. Hackett said. "Will we continue to be the only nation that doesn't fully develop its own resources?" (Mills, 2006, p. 5) America can solve its own energy crisis by drilling on our own...
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...Bronson Contic July 22, 2015 Bronson Contic July 22, 2015 Abstract This report covers the acquisition of XTO Energy by ExxonMobil including background information, industry characteristics, calculations, and analysis. Abstract This report covers the acquisition of XTO Energy by ExxonMobil including background information, industry characteristics, calculations, and analysis. Case Study 1 ExxonMobil Corp. Acquisition of XTO Energy, Inc. Case Study 1 ExxonMobil Corp. Acquisition of XTO Energy, Inc. EXECUTIVE SUMMARY The purpose of this document is to outline elements of the acquisition process in the energy industry by detailing ExxonMobil Corp.’s (referred to as ExxonMobil) acquisition of XTO Energy, Inc (referred to as XTO). This transaction was announced in December 2009 and finalized in June 2010. The subsequent information will contain an introduction that focuses on the economic atmosphere of the energy industry at this time and details surrounding the agreement including motivations for the deal and terms of the deal. Next, calculations used in the valuation process will be introduced with results presented. Finally, a discussion of findings will conclude, supplying answers to the following questions: (1) What should the acquisition price for XTO shares have been? (2) Which comparable firm is the best comparison firm for XTO Energy? (3) Why did ExxonMobil want to acquire XTO? (4) Based on the analysis, did ExxonMobil overpay for XTO or get a Bargain...
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...contain hydrocarbon within the reservoir, which allows gas and liquids to flow up the production casing. At the same time BP and Tranocean accepted a negative pressure test which was incorrect and so integrity of the well was not established. Where there was supposed to be a separation of the mud and gas, this was not working, causing gas to vent directly on to the rig instead of being diverted overboard. The gas then flowed in to the engine room through the ventilation system which then created a potential for ignition, which was suppose to have been prevented by the rig’s fire and gas system. ( Durando. Jessica, 2011) Anadarko Petroleum is considered as one of the largest independent oil and natural exploration and production companies in the world. Anadarko Petroleum is partner with BP on the Deepwater Horizon Oil rig in the Gulf of Mexico. Although Anadarko Petroleum owns a quarter of the damage well that led to the worst environmental disaster in the United States of America which resulted in the...
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...International suggests greater EUR (estimated ultimate recovery) than previously reported. Marcellus projected to 6.2bcf compared to 5.2bcf and Utica 3.3bcf compared to 2.5bcf per well. Due to improved technology LNG production has eightfold and number of well drilling has increased immensely. The Utica and Marcellus shale are regarded as high-growth areas for natural gas liquids supply in the United States. Moody’s analyst Michael sabella said, Exploration and production companies that extract natural gas from the Marcellus Shale will benefit more than natural gas producers elsewhere in North America, even if gas prices weaken. Operation at Marcellus & Utica will continue to benefit producers such as Southwestern Energy, Chesapeake Energy, and Anadarko Petroleum. specially Marcellus have been immensely productive and will continue to be productive than expected. Already new comers like MarkWest Energy Partners and Sunoco Logistics Partners are getting benefits as they complete projects. Truth be told, the growth of Marcellus is have discouraged credit quality but there are opportunities for Marcellus producers such as Pipeline reversals and exports of liquefied natural gas for benefit. Marcellus producers will maintain to be competitive and production will get speed when all the projects hit operational...
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...money would be raised by us to fund such a professional approach”. – Risk Management: “[drilling] the risk would be spread over a number of drilling opportunities, rather than all-or-nothing deals”. < 1960, limited profitability, diversification of other businesses: Real estate, agriculture, cattle and dude ranching, lumber, steel, plastics, auto supplies, aerosol cans, telephones, utilities. 1963, executive disagreement on policies leads to departure of Anderson. 1967, first major oil discovery (1200 barrels/day) in Wyoming’s Powder River Basin 1969, listing as ASA in NYSE. 1971, Apexco (Apache Exploration Company) founded 1977, Apexco values more than its parent APA; APA sells Apexco, invests proceeds in Anadarko (gas) Basin (TX panhandle-OK). Another owner of acreage...
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...Strategic Research Project Analysis: NOBLE ENERGY, INC Respectfully Submitted to: Dr Shengsheng Charlie Huang Strategic Management MGMT 4309- Fall 2013 Table of Contents 1. Executive Summary 2. Introduction 3.1 Company Background 3.2 Purpose of the study 3. External Analysis 4.3 General Environmental Analysis 4.4.1 Demographic Segment 4.4.2 Economic Segment 4.4.3 Political/Legal Segment 4.4.4 Socio-Cultural Segment 4.4.5 Technological Segment 4.4.6 Global Segment 4.4.7 Summary of the General Environmental Analysis 4.4.8 Industry Driving Forces 4.4 Industry Analysis 4.5.9 Description of the Industry 4.5.10 Industry Dominant Economic Features 4.5.11.1 Market Size 4.5.11.2 Market Growth Rate 4.5.11.3 Industry Trends 4.5.11 Five Forces Analysis 4.5.12.4 Threats of New Entrants 4.5.12.5 Power of Suppliers 4.5.12.6 Power of Buyers 4.5.12.7 Power of Substitutes 4.5.12.8 Intensity of Rivalry 4.5.12.9 Summary of Industry Analysis 4.5 Competition Analysis 4.6.12 Industry Competitors 4.6.13 Rivals Anticipated Strategic Moves 4.6.14 Summary of Competitive Analysis 4.6.15 Key Success Factors 4. Internal Analysis 4.1 Organizational Analysis 4.1.1 Corporate Values...
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...After reading Berle-Dodd debate, I feel it goes both ways it helps the Public Service entity that exists to serve the public and the shareholder interests as well but it really helps the Public Service entity more than anything else. In the debate surrounding question involves two competing versions of the corporation one in which said, “the corporation is viewed as the property of the individuals who purchased its shares—the stockholders or owners” (Should Corporations Serve Shareholders or Society?). So that means that the corporation’s purpose is to predominantly increase their wealth and advance the financial interests of the owners. For example, both Kerr-McGee and Anadarko are oil and gas-based companies that only serves shareholders. The reason why is that the shareholders puts money in to that company to make them the best of the best and keep them up, running and increase their wealth. (Should Companies Serve Only Their Shareholders or Their Stakeholders More Broadly?)...
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...------------------------------------------------- Analysis of Apache Corporation Date: 29/04/2013 Current Price: $73.88 Target Price: $87.25 Recommendation: Buy Highlights ◇I recommend to buy in with a target price of $87.25. The holding period return would be 18.37%(including dividend). Apache is a large multinational corporation, engaged in the energy industry. In addition, the company is very active in the acquisition market. ◇Valuation. In this report, the main method I used to value the company is DCF model with reasonably estimated data based on the company’s historical performance. ◇Main growth driver: (1) the increasing needs of oil and gas.(2) exploitation and extension of existing producing fields.(3) acquisition. source: google finance Business Description General Information Apache Corporation, a Delaware corporation formed in 1954, is an independent energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids. Apache currently have exploration and production interests in six countries: the U.S., Canada, Egypt, Australia, the U.K. North Sea (North Sea), and Argentina. The company's proved reserves at year-end 2012 totaled 2.85 billion barrels of oil equivalent, roughly half oil and half natural gas. Apache have also been significantly active in the acquisition market for the past two years, having identified several opportunities that met our criteria for risk...
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...RUNNING HEADER: BENEFIT OF MERGING AND STAYING INDEPENDENT Assignment 4: Merger, Acquisition, and International Strategies By: Professor Unknown Business 499 Business Administration Capstone Strayer University Winter Quarter 2015 BENEFIT OF MERGING AND STAYING INDEPENDENT Every week as we fill up our gas tanks and wonder why gas prices are up and down; we wonder a few things. How much is this company making off us? Why are gas prices going up now? As I get to what this assignment is about, the question for you I have is. Do you think and oil company could get even bigger? In 1999, Exxon and Mobil agreed to an $80 billion dollar merger to form Exxon- Mobil Corporation. According to Mary DiMaggio’s article, “The Top 10 Best (and Worst) Corporate Mergers of All Time... Or, the Good, the Bad, and the Ugly”, dated 9/15/09, not only did Exxon- Mobil become the largest company in the world, but it reunited its 19th century former selves, John D. Rockefeller’s Standard Oil Company of New Jersey (Exxon) and Standard Oil Company of New York (Mobil). In my opinion and based on research I think the merger was a wise choice. It’s a wise choice because they set themselves up to lead in a few different markets. You could say that they are a small rich oil nation. The first reason I think it was a wise choice because now that the two companies have merged they have reduced their expenses. Reducing expensing means more money in revenue. Another reason...
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...9-201-113 REV: AUGUST 27, 2001 D O LISA MEULBROEK Risk Management at Apache N Introduction O By March of 2001, managers at Apache Corporation, an independent oil and gas exploration and production company, had reason to be optimistic. While oil prices had softened somewhat recently, at $27 a barrel they were much higher than the pernicious levels of 1998, when oil bottomed out at $11 per barrel. Apache had just closed on the acquisition of Repsol in Egypt's Western desert and, along with its partner Shell Overseas Holdings, had also acquired Fletcher Challenge Energy, for a combined cost of $1 billion. The value of such acquisitions, however, depended in large part on the future prices of oil and gas. To decrease its exposure to oil and gas price volatility, Apache had begun a limited hedging program centered mostly on its recently acquired properties. Apache’s managers knew that hedging could create its own risks, and so it seemed prudent to re-evaluate the success of the new program. The decision facing Apache’s managers was whether the firm should continue hedging, and if so, should its current program be extended beyond hedging the revenues from acquisitions? T CO Apache Corporation PY Apache Corporation was founded in 1954 by Raymond Plank, its current Chairman and Chief Executive Officer. Mr. Plank’s son, Roger, was the company’s current CFO, but the company was not controlled by the Plank family, and in fact, officers and...
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