360° Coverage : Anadarko Erases 'Silkwood' Uncertainty With $5 Billion...

2 Updates
Anadarko Erases 'Silkwood' Uncertainty With $5 Billion Tronox Settlement
Photo Credit: Forbes Business

Anadarko Erases 'Silkwood' Uncertainty With $5 Billion Tronox Settlement

Apr 3 2014, 5:27pm CDT | by

Great news for Anadarko Petroleum today as it announced a settlement in its long-running litigation over Tronox. Anadarko has agreed to pay $5.15 billion to plaintiffs. News of the settlement sent...

Filed under: news

 
 
 

23 weeks ago

Anadarko Erases 'Silkwood' Uncertainty With $5 Billion Tronox Settlement

Apr 3 2014, 5:27pm CDT | by

Great news for Anadarko Petroleum today as it announced a settlement in its long-running litigation over Tronox. Anadarko has agreed to pay $5.15 billion to plaintiffs. News of the settlement sent Anadarko shares soaring 14.5% in the last two hours of the trading day.

Tronox was a former subsidiary of Kerr-McGee — which Anadarko acquired in 2006. Kerr-McGee had set up Tronox as a kind of pit of despair into which it loaded up decades of toxic environmental liabilities and toxic tort claims, balanced them out with a handful of assets, then spun it out as a standalone public company.

Free of Tronox, Kerr-McGee had become far more attractive to suitors; Anadarko paid $16.4 billion in cash for the company, plus the assumption of what it initially estimated as $1.6 billion in debt and “other liabilities.“ It hadn’t counted on being haunted by those Tronox liabilities, which reared their head after Tronox filed for bankruptcy in 2009, and at one point were tallied up at $25 billion, encompassing more than 2,500 sites across the country. Kerr-McGee had an infamous environmental record; the movie “Silkwood” depicted the tragedy of employee Karen Silkwood, who claimed to have been exposed to deadly levels of radiation while working at on of the company’s uranium processing sites.

In December of last year a judge in the case ruled that Kerr-McGee had improperly spun off Tronox and that Anadarko could be on the hook for as much as $14 billion in cleanup and claims. Anadarko shares had plunged 9% on that news.

The Tronox settlement will erase a huge asterix that investors have had penciled in next to Anadarko for years. Shares in the company had doubled in the five years up today — well outpacing the likes of Apache Corp., Marathon Oil and Devon Energy. Yet Anadarko has been one of the most successful explorers in recent years, participating in vast discoveries offshore Mozambique and Ghana, while capitalizing on vast acreage holdings onshore U.S., especially in the Wattenberg of Colorado, Eagle Ford and Permian basin of Texas. Nicholas Pope, analyst with Cowen & Company, figures that Anadarko could have 20,000 potential drilling locations in the Wolfcamp shale of Texas.

In the Gulf of Mexico it is working on appraising the potential blockbuster Coronado discovery and is currently drilling the Deep Nansen well. Last year I visited the Texas shipyard building out the spar that will produce its Lucius field. Analyst Pope figures that Anadarko’s big offshore projects could add 180,000 bpd of new production by 2020. That would be a 23% boost to the company’s current run rate of roughly 775,000 barrels of oil and natural gas equivalents per day. The company has been living within its means, with expectations of $10 billion in discretionary cash flow this year funding just over $8 billion in capital spending.

Anadarko has for years been whispered about as a juicy takeover target with a lot of optionality for a global supermajor. The company most often mentioned as a buyer is Exxon Mobil. It may be no coincidence that Exxon decided to build its massive new office park just a couple miles from Anadarko headquarters in The Woodlands, just north of Houston. It’s unlikely that all the upside potential in Anadarko has already been taken.

The Deepwater Building Boom

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of th ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

'India-US partnership can touch $1 trillion by 2030'
Washington, Sep 16 (IANS) Ahead of Indian Prime Minister Narendra Modi's landmark visit to the US later this month, an Indian foreign policy think tank has raised the tantalising prospect of India-US Partnership touching $1 trillion by 2030.
 
 
Russia to expand economic cooperation within SCO: Putin
Moscow, Sep 16 (IANS) Russia will promote economic cooperation in the Shanghai Cooperation Organization (SCO) and take joint measures on issues such as energy security, Russia's President Vladimir Putin said Monday.
 
 
Chinese yuan weakens
Beijing, Sep 16 (IANS) The value of the Chinese currency renminbi, or the yuan, weakened 10 basis points to 6.1462 against the US dollar in its central parity rate Tuesday, authorities said.
 
 
World Bank launches website to track project progress
Washington, Sep 16 (IANS) The World Bank Monday launched a new website to allow users to track the progress of the bank's projects and check whether the group is meeting its key targets, including poverty reduction and boosting inclusive growth.
 
 
 

Latest from the Network

Julie Hermann Apologizes for 'Regrettable Actions' of Rutgers Fans
Julie Hermann has apologized for the behavior of Rutgers University fans who made fun of Penn State University during the two teams' Big Ten football game on Sept. 13.Hermann issued a statement on the Rutgers Scarlet...
Read more on Sport Balla
 
Nicki Minaj: Blue Ivy is a 'precious little lamb'
Nicki Minaj thinks Beyoncé and Jay Z's daughter is the ''most precious little lamb.'' The 'Anaconda' hitmaker, 31, made a surprise appearance at the couple's 'On The Run' gig in Paris last weekend and got to hang out...
Read more on Celebrity Balla
 
300,000 children back to school in Syria, Gaza: UN
United Nations, Sep 16 (IANS) As the new school year kicks off across the world, nearly 300,000 children returned Monday back to UN-run schools in Gaza and Syria. "In Gaza, conflict has profoundly affected the...
Read more on Politics Balla
 
Russia calls for international efforts to combat terrorism
Moscow, Sep 16 (IANS) Russia is calling on the international community to join efforts in defeating terrorism in the Middle East and North Africa, Foreign Minister Sergei Lavrov said Monday. Russia insists that the...
Read more on Politics Balla
 
Five extremists killed in raids in Egypt
Cairom, Sep 16 (IANS) At least five extremists were killed Monday during security raids on their hideouts in Egypt's North Sinai province, a security official said on condition of anonymity. "After confrontations with...
Read more on Politics Balla
 
Wife keeps Ben Affleck 'calm'
Los Angeles, Sep 16 (IANS) Actor Ben Affleck credits his wife Jennifer Garner for being a calming influence on him whenever he feels the "terror" of starting a new project. Even after so many years of being in showbiz...
Read more on Celebrity Balla
 
Bolivia prison clash leaves four dead
Sucre, Sep 16 (IANS) Authorities in Bolivia Monday confirmed that four people were killed and 11 others injured in a clash in central Bolivia's El Abra prison over the weekend. The fighting broke out around 10 p.m....
Read more on Politics Balla
 
World Bank launches website to track project progress
Washington, Sep 16 (IANS) The World Bank Monday launched a new website to allow users to track the progress of the bank's projects and check whether the group is meeting its key targets, including poverty reduction and...
Read more on Business Balla
 
EU leads opposition against Iceland's whaling
Reykjavík, Sep 16 (IANS) The European Union (EU) led a joint multi-country opposition against the Iceland government's permission for commercial whale hunting and trading Monday, according to a statement issued by the...
Read more on Politics Balla
 
Ariana Grande wrote sex song at 14
Ariana Grande wrote a sexual song when she was 14. The 21-year-old singer first penned a naughty track when she was a teenager, but her mother thought she was ''too young'' to be creating records like that. She said...
Read more on Celebrity Balla