Market Overview

Investors Rejoice Following Anadarko's Massive Settlement In US, Tronox Case

Related APC
Sanchez Energy (SN) Divests Eagle Ford Shale Assets for $50M
10 Biggest Mid-Day Losers For Wednesday
APC INVESTOR ALERT: The Law Offices of Vincent Wong Reminds Investors of Commencement of a ... (GuruFocus)
Related TROX
Watch These 10 Huge Call Purchases In Thursday Trade
Biggest Hurdle For Tronox Acquisition Of Cristal? Chinese Regulators

Shares of Andarko Petroleum (NYSE: APC) have spiked over the $96 level in mid-day action Thursday as Bloomberg reported the company entered into a settlement agreement related to the massive $25 billion suit by the US and Tronox (NASDAQ: TROX). The stock is up more than 12 percent at last check.

Tronox shares, meanwhile, initially spiked to around $25 but have since pared some of that gain. Tronox stock last traded at $24.75, up about 1.2 percent from Wednes

Anadarko has since issued a press release confirming the settlement of Tronox's Adversary Proceeding. The company will pay plaintiffs $5.15 billion in total, made up of about $3.98 billion and 6-percent interest thereon from the filing of the complaint in May 2009.

Anadarko said a "significant cash position and available $5 billion credit facility provide flexibility in funding the settlement payment." The company sees gross tax benefit of about $1.65 billion related to the settlement.

Al Walker, Anadarko's Chair, President and CEO, offered the following statement: "This settlement agreement with the Litigation Trust and the U.S. Government eliminates the uncertainty this dispute has created, and the proceeds will fund the remediation and cleanup of the legacy environmental liabilities and tort claim. Investor focus can now return to the tremendous value embedded in Anadarko's asset base, allowing our peer-leading operational and exploration results to again become the basis for valuation. We are grateful to our stakeholders who have maintained their confidence and trust in our people and our assets."

Posted-In: News Legal Movers


Related Articles (APC + TROX)

View Comments and Join the Discussion!