Morningstar Rating

Stock Research and Analysis

by Mark Hanson, CFA

Bulls Say

Anadarko's domestic inventory encompasses some of the most economically attractive regions in the lower 48, including the Niobrara (where the firm controls mineral rights), Permian, Eagle Ford, and Marcellus.
Anadarko's portfolio includes a mix of oil and gas and near-term and longer-dated assets, which should help mitigate project risk and swings in commodity prices.
Anadarko appears to be a strong operator, especially as it relates to complex deep-water drilling. Read more 

Bears Say

Deep-water drilling, which we expect to account for 20%-25% of the company's production going forward, encompasses a unique set of challenges.
As with most firms in its peer group, size could ultimately become an enemy, with production growth potentially harder to come by as the firm passes the 1 MMboe/d mark in 2017.
With approximately 48% of its production coming from domestic natural gas throughout our forecast period, Anadarko will remain leveraged to this market for the next several years. Read more 

Management

Al Walker took over as CEO in 2012 from Jim Hackett, who had been with the company since 2003. Hackett remained with Anadarko as executive chairman until last year, when Walker became chairman as well. Walker joined Anadarko in 2005 and the over past   Read more 

Profile

Anadarko Petroleum, based in The Woodlands, Texas, is one of the largest independent exploration and production companies in North America. Its asset base includes conventional   Read more 

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