Anadarko Has Been Trading At A 52-Week Low. Where Will It Head Going Into 2019?

APC: Anadarko Petroleum logo
Anadarko Petroleum

Anadarko Petroleum (NYSE: APC)  has been trading close to a 52-week low recently. With the stock having fallen from a 52-week high of 76 dollars to 50 dollars recently, what can we expect going into the next couple of quarters for the company and the stock?

We currently have a price estimate of $63 per share for Anadarko Petroleum, which is higher than its market price. View our interactive dashboard – Anadarko In 2019 – and modify the key drivers to visualize the impact on its valuation.

Relevant Articles
  1. How Will Anadarko Perform In 2019?
  2. Andarko 4Q: Andarko To See Improved Earnings But Cash Flow May Face Headwinds
  3. Higher Oil Output And Improved Commodity Prices Will Drive Anadarko’s 3Q’18 Results
  4. Ramp Up Of Oil Production Will Drive Anadarko’s Value In The Near Term
  5. Key Takeaways From Anadarko’s Second Quarter Results
  6. What To Expect From Anadarko’s Second Quarter Results

Anadarko Petroleum continues to face issues with production, and the price of oil/natural gas. With the rally in natural gas recently this should provide the company with some respite going forward. It recently made a deal of $4 billion with Western Gas Partners, to sell its mid-stream assets. This will generate $2 billion in cash for Anadarko and the rest of the sale will be settled in equity. We expect that the proceeds from this sale will result in anywhere from $600-620 million in 2019.


The company has also taken the route of paying off its shareholders through the increase of debt, and this has significant consequences in a rising rate environment. The company for the year faced a capital expenditure of $4.891 billion, and a cash flow of $4.3 billion.  With a negative cash flow of $589 million. The company’s total debt increased by $2.85 billion,

Anadarko is increasingly reliant on rising oil prices to drive its cash flow. With 2018 production ranging around 240 MMOE, Anadarko expects that its production capacity will increase to 260-270 MMOE in 2019, this is on the back of $4.3 billion capital investment. We expect oil to trade above $50 dollars a barrel in 2019, therefore  cash flows for Anadarko will steady. This could bring the stock above the 52-week low levels it is currently trading at.


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