Chart Analysis . Anadarko’S Stock Price Is Trending In

Chart Analysis Anadarko’s stock price is trending in the same direction as oil prices. Over the time period of 2/27 to 4/7, it appears that crude oil prices were more volatile than Anadarko’s stock price. Also, natural gas prices were also more volatile than Anadarko’s stock price. Anadarko’s portfolio is more heavily weighted toward oil because their two most prolific basins – the Delaware Basin and the DJ Basin - are more oil-weighted basins. Also, Anadarko entered 2017 with the goal to be more focused on oil. Therefore it makes sense that Anadarko’s stock price follows the crude oil stock price closely. Looking at Anadarko’s 10-K, they are not involved in hedging. As a result, their stock price could not be effected by hedging.†¦show more content†¦They are one of the largest independent producers in the Deepwater Gulf of Mexico. They also have high-potential basins in places such as Alaska, Algeria, Brazil, China, and other countries. In the United States, Anadarko is focused on adding reserves through horizontal drilling in the Delaware and DJ basins. Anadarko held interests in over 580,000 gross acres in the Delaware basin. They also hold over 350,000 net acres in the DJ basin. As the upturn begins for the oil and gas industry, Anadarko believes that they are well positioned to be a successful company. In 2016, they reduced their capital investments by 50% relative to 2015, while continuing to improve their efficiency and cost structure. For example, they closed an accretive acquisition of FCX s Deepwater Gulf of Mexico assets. This transaction doubled their production from the Gulf of Mexico and the expected free cash flow will help accelerate investments in Anadarko s most prolific assets of the DJ and Delaware basins. Most of Anadarko s revenue comes from their sales in the Delaware Basin and the DJ Basin. At the end of the fourth quarter in 2016, Anadarko accelerated activity with seventeen rigs in their two most prolific wells. They currently have 11 rigs in the Delaware Basin and 6 rigs in the DJ basin. Not only is Anadarko positioned to create more value as the upturn begins, but they also surpassed their sales-volume expectations. In the Delaware basin, Anadarko increased