Commodities & Metals

Anadarko Mozambique Sale to Speed Company’s U.S. Shale Projects

Offshore drill rig
Thinkstock
Independent oil and gas firm Anadarko Petroleum Corp. (NYSE: APC) on Sunday announced the sale of a 10% stake in a natural gas development block offshore of Mozambique to India’s state-controlled energy company ONGC Videsh for $2.64 billion in cash. Anadarko now owns 26.5% working interest in the project and is the operator.

The most interesting thing about this transaction is what Anadarko plans to do with the cash it gets from ONGC. The company said it plans to use the proceeds from the sale to “accelerate” development in its U.S. shale oil and liquids plays.

Anadarko is building its cash hoard, which totaled nearly $4.6 billion at the end of June, in order to develop its liquids plays in the United States. We noted last week in our report on companies spending the most to find oil that Anadarko plans to spend $5.5 billion this year to boost its U.S. oil production. This asset sale should help accomplish that, as well as giving the company some room to raise its anemic 0.8% dividend yield.

Analysts have put a consensus price target of $111 on Anadarko’s stock, which is roughly 23% higher than Friday’s closing price and about 20% higher than the 52-week high. Shares are trading up 3.3% in the premarket on Monday, at $92.79 in a 52-week range of $65.82 to $92.79.

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

 

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.