StockCall Study on Chesapeake Energy and Anadarko Petroleum: Oil E&P Stocks Bounce Back

Tue Feb 12, 2013 8:01am EST

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LONDON,  February 12, 2013  /PRNewswire/ --

Oil E&P industry is still struggling with oil and gas prices decline. However,
companies in this space are compensating for lower prices by boosting their
volumes. Many of these stocks are in the recovery mode and have good upside left
in them. Companies are also expanding internationally to diversify their risk
profile. Spike in oil and gas demand also bodes well for industry players like
Chesapeake Energy Corp. (NYSE: CHK). One industry-wide malady is the huge debt
burden carried by most of E&P. Most of these debts has been taken during the oil
price bubble to build huge capacities. Nonetheless, companies like Anadarko
Petroleum Corp. (NYSE: APC) are bridging the debt levels by selling their
non-core assets. StockCall free coverage on Chesapeake Energy and Anadarko
Petroleum is available upon registration at

Anadarko Surpasses Estimates for Q4 Results

Anadarko Petroleum is mainly invested in the  Gulf of Mexico. The company also
has interests in the Appalachian basin and Rocky Mountains. Lately, it has been
trying to grow internationally. Anadarko Petroleum is seeing success in its
plans as it reported healthy Q4 results, while its Q3 results were
disappointing. For its fourth quarter, the company reported a profit of  $190
million, while it had suffered a net loss of  $339 million  for the fourth
quarter of last year. Register now and get access to the free analysis on
Anadarko Petroleum at   

Anadarko Petroleum is also augmenting its operations in Shale regions. It is
especially active in the Marcellus shale and South Texas Eagle Ford shale. As
for its international expansions, the company has been successful in discovering
gas reserves in  Mozambique. In order to ramp up production, Anadarko Petroleum
is also looking to make capital outlays. Its immediate plan is to construct LNG
plants in  Cabo Delgado. Successful execution of these projects will ensure that
the stock retains its bullish stance.

However, the company has big debts on its balance sheet, and it has been
carrying out asset sales to reduce the burden. It would also need funds for its
capital expansion. It may sell some of its stake in its properties to fund the
outlays and to decrease existing debt balance. The stock looks poised for good
upside move.

Chesapeake Redesigns Business Strategy

Chesapeake Energy Corporation is in bullish mode and it is expected to keep up
its momentum. The company will see a change of guard when current CEO  Aubrey
McClendon  steps down on  April 1st. His departure is likely to put an end to
the corporate governance issues the company has been facing and may give another
boost to its stock price. Download the free technical research on Chesapeake
Energy by signing up at

Apart from international expansion, the company is also expected to gain from
increased export opportunities. While  Europe's  demand is recovering,  Asia  is
already showing big appetite for oil and gas. The company is also focusing more
on natural gas liquids. Among the red flags is the debt burden on Chesapeake
Energy's balance sheet. The company will be reducing its debt burden by selling
its assets, which may have a slightly negative impact on its production
capacity. It is the second largest natural gas producing company in  the United
States  and is in good position to exploit any new opportunity in the area.

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William T. Knight, Email:, Contact Number: +1-646-396-9857
(9:00 am EST - 01:30 pm EST)

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