Independent energy explorer Anadako Corp. (NYSE:APC) announced that its Chief Operating Officer Al Walker would succeed Jim Hackett as the company’s CEO. [1] Mr. Walker, a former investment banker, will take over as the CEO on May 15th while Mr. Hackett will continue with the company as the Executive Chairman until he retires in 2013. The announcement comes on the back of Anadarko’s stock trading at record levels with multiple successes from its exploration efforts across the world and the settlement of its legal battle with BP over the Macondo spill. Anadarko competes with oil majors such as Exxon Mobil (NYSE:XOM).
We have a $90.30 price estimate for Anadarko Corp., which is at a slight premium to its current stock price.
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Recent successes
Anadarko had a successful 2011, buoyed by high oil prices and a string of successful exploration results. Most significantly, the company announced that it had struck a major gas field in offshore Mozambique, one of the major discoveries of the last decade. [1] In addition to that, the company also reported successful results in its Heidelberg field in the U.S. Gulf of Mexico and in Ghana over the past few months. The company has aggressively pursued onshore shale assets in the U.S. and offshore fields across the world over the past few years to increase production levels as well as its reserve replacement ratio.
Industry analysts are also speculating that the change in leadership could also lead to possible deals in the near future. [1] Anadarko’s assets in the GoM and other geographies are seen as attractive options for large oil companies experiencing a decline in their production levels. A change in Anadarko’s management could result in a realignment in the company’s strategic plans, which could prompt future deals.
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Notes:- Anadarko Picks Ex-Banker as CEO After Hackett’s Reign of Growth, Bloomberg [↩] [↩] [↩]
