Anadarko May Have Most Important Natural Gas Discovery in a Decade

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Anadarko (NYSE:APC) shares are moving higher after announcing its gas discovery off the Mozambique coast in East Africa was around twice as large as previously estimated. According to the company, the gas fields are now expected to have recoverable reserves of 15 to over 30 trillion cubic feet (TCF) of natural gas (NYSE:UNG). Compare this to the U.K.’s total gas reserves of 9 TCF.

“This could be one of the most important natural gas fields discovered in the last 10 years,” said Anadarko Chairman Jim Hackett. The news will also create a halo effect for other top oil and gas companies in East Africa such as Exxon Mobil (NYSE:XOM), BP (NYSE:BP) and Statoil (NYSE:STO).

The announcement makes investors more confident about prospects in the region, particularly as Italy’s Eni (NYSE:E) also announced a giant natural gas discovery offshore northern Mozambique, quite close to the Anadarko fields.

Cove Energy Plc, a financial investor in the fields along with Anadarko and Japan’s Mitsui, is also seeing a run-up in shares. The market is expecting a bid for the company or, at the very least, a good price for its Mozambique assets. Analysts at Peel Hunt have upgraded their target price for Cove shares to 166 pence from 126 pence.

Here’s how these stocks are trading on the news:

  • Anadarko Petroleum Corporation (NYSE:APC): APC shares recently traded at $76.66, up $4.82, or 6.71%. Its market capitalization is $38.17 billion. They have traded in a 52-week range of $57.11 to $85.50. Volume today was 1,631,734 shares versus a 3-month average volume of 4,719,620 shares. The company’s trailing earnings are $-4.38 per share. The company pays a dividend of $0.36 per share for a dividend yield of 0.50%. About the company: Anadarko Petroleum Corporation is an independent oil and gas exploration and production company with international operations. In the United States, the Company operates in Texas and surrounding states, the Rocky Mountain region, Alaska, and the Gulf of Mexico. Internationally, Anadarko has exploration and/or production operations in Africa, Asia, South America, and the Caribbean. Get the most recent company news and stock data here >>
  • Exxon Mobil Corp. (NYSE:XOM): XOM shares recently traded at $76.21, up $2.31, or 3.13%. Its market capitalization is $365.31 billion. They have traded in a 52-week range of $67.03 to $88.23. Volume today was 5,003,867 shares versus a 3-month average volume of 23,901,200 shares. The company’s trailing P/E is 9.20, while trailing earnings are $8.28 per share. The company pays a dividend of $1.88 per share for a dividend yield of 2.50%. About the company: Exxon Mobil Corporation operates petroleum and petrochemicals businesses on a worldwide basis. The Company’s operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. Exxon Mobil also manufactures and markets fuels, lubricants, and chemicals. Get the most recent company news and stock data here >>
  • BP plc (NYSE:BP): BP shares recently traded at $40.87, up $1.46, or 3.7%. Its market capitalization is $129.14 billion. They have traded in a 52-week range of $33.62 to $49.50. Volume today was 2,217,344 shares versus a 3-month average volume of 9,383,260 shares. The company’s trailing P/E is 5.66, while trailing earnings are $7.22 per share. The company pays a dividend of $1.68 per share for a dividend yield of 4.30%. About the company: BP plc is an oil and petrochemicals company. The Company explores for and produces oil and natural gas, refines, markets, and supplies petroleum products, generates solar energy, and manufactures and markets chemicals. BP’s chemicals include terephthalic acid, acetic acid, acrylonitrile, ethylene and polyethylene. Get the most recent company news and stock data here >>
  • Statoil ASA (NYSE:STO): STO shares recently traded at $24.32, up $1.01, or 4.33%. Its market capitalization is $77.38 billion. They have traded in a 52-week range of $19.85 to $29.67. Volume today was 471,766 shares versus a 3-month average volume of 2,907,590 shares. The company’s trailing P/E is 7.30, while trailing earnings are $3.33 per share. The company pays a dividend of $0.94 per share for a dividend yield of 4.00%. About the company: Statoil ASA explores for, produces, transports, refines, and trades oil and natural gas. The Company explores for oil in Europe, Africa, the Middle East, Asia, and the Americas. Get the most recent company news and stock data here >>
  • Eni SpA (NYSE:E): E shares recently traded at $40.39, up $1.82, or 4.72%. Its market capitalization is $72.95 billion. They have traded in a 52-week range of $32.44 to $53.80. Volume today was 203,230 shares versus a 3-month average volume of 1,284,220 shares. The company’s trailing P/E is 9.02, while trailing earnings are $4.48 per share. The company pays a dividend of $2.04 per share for a dividend yield of 5.30%. About the company: Eni S.p.A. explores for and produces hydrocarbons in Italy, Africa, the North Sea, the Gulf of Mexico, Kazakhstan, and Australia. The Company both produces natural gas and imports it for sale in Italy and elsewhere in Europe. Eni transports natural gas in pipelines. The Company generates and trades electricity, refines oil, and operates gasoline service stations. Get the most recent company news and stock data here >>

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