| By PR Newswire | Article Rating: |
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| February 12, 2013 08:02 AM EST | Reads: |
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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 http://www.stockcall.com/register
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 http://www.StockCall.com/APC021213.pdf
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 http://www.StockCall.com/CHK021213.pdf
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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SOURCE StockCall.com
Published February 12, 2013 Reads 154
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