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

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

PR Newswire

LONDON, February 12, 2013

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 1^st. 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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