Naturally, most of the media (and investor) attention arising from the disaster with the Macondo well in the Gulf of Mexico is focused on BP (NYSE: BP, Stock Forum), rightly or wrongly. However, Anadarko (NYSE: APC, Stock Forum) is now, I feel, well worth a second look as a bargain play. Anadarko (see company website) is not well known to many UK based investor but it should be, due to its involvement in some interesting areas where there are overlaps with UK based companies such as Tullow and laterly Cove. Since the Macondo disaster, Anadarko's shares have fallen from $74 to close at $34 last night (9 June), valuing the company at $17 bn. The company has some world-class assets including large stakes in their projects. Details of their assets can be found again by reference to their website. I highly commend the company for the quality of the information that they have on their website, in terms of fact sheets relating to the different operational areas and of course their presentations, the latest of which was their presentation at the RBC conference on 8 June, which can be accessed here.
Technically speaking APC could be on the hook for up to 25% of the Macondo costs as a 25% interest holder. However, if costs escalate further, to the ludicrous/hysterical figures being mentioned in the press, then I would be willing to bet that APC will use the Joint Operator Agreement to wriggle out of some of these costs (all?) via gross negligence related clauses, perhaps citing the oft mentioned "rows" between the BP "company man" and the contractors in the days and hours leading up to the explosion. Perhaps, in turn, they could file against BP?
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