Anadarko Shares Volatile As Traders Deal with Report of $1B Stake Sale, Worse-Than-Expected Q3 Profit
Anadarko Petroleum Corp (NYSE: APC) might sell its $1 billion stake in a Chinese oil and gas project and bring the money home, a Reuters report from late Sunday suggested. The story indicated Anadarko is looking into the sale of its 35 percent interest in oil and gas projects in Bohai Bay in Northeast China.
Anadarko gave up active operations of the project to its partner CNOOC Limited (NYSE: CEO) last year. Unnamed sources told Reuters Anadarko is now weighing the benefits of an outright sale.
Reuters said the oil exploration giant wants to concentrate its future efforts in the United States. In recent months, Anadarko sold a 10 percent interest in an offshore gas field near Mozambique and sold three operations in Indonesia to PT Pertamina. This move wouldn't mean Anadarko is completely finished with China. The company still owns 50 percent of a large exploration parcel in the South China Sea. Anadarko's fields in China produce around 32,300 barrels of oil a day -- one of the company's smallest operations.
In addition to the Reuters report from late Sunday, traders in Anadarko were positioning ahead of quarterly results after the close. Anadarko reported third-quarter earnings of $1.13, missing the analyst consensus estimate of $1.16.
Andarko's shares increased by 1.6 percent at the close of Monday's session. The stock is trading down about 1.3 percent to $94.66 in post-market trade following the quarterly figures.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.