This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Transocean, Anadarko: Oil-Spill Suit Losers

NEW YORK ( TheStreet) -- Transocean (RIG - Get Report) and Anadarko Petroleum (APC - Get Report) shares were the biggest oil spill loser at the open on Thursday morning, with shares down roughly 3%.

On Wednesday afternoon, the Obama administration filed a civil lawsuit over the Gulf of Mexico oil spill, naming BP (AIXG), Anadarko Petroleum (VECO) and Transocean among the defendants.

While there were plenty of headlines on Thursday morning indicating that the suit was hitting BP shares hard -- and BP shares did fall in trading in London -- at the U.S. market open it was only Transocean and Anadarko taking a dive. BP share trade was exactly in line with the performance of the energy sector shortly after the open, close to flat.

Transocean was also downgraded to a hold by Morgan Stanley on Thursday morning. The rating change might explain some of the action in Transocean and Anadarko shares. The companies have seen their share prices double from oil-spill lows and some investors might be booking profits given the uncertainty of the oil spill litigation. Morgan Stanley noted the legal uncertainty in its downgrade of Transocean.

BP shares are up more than 40% since its oil spill low of $26.75.

Yet at a larger level, the lack of movement in BP shares on Thursday morning follows the logic that this opening legal move by the government was long expected. The fact that BP had long ago voluntarily waived its right to invoke the $75 million oil spill liability cap made the news that the government was asking the court to throw out that cap a non-issue, at least for BP.

Transocean had earlier this year tried to argue in Houston court using a 150-year old maritime law about sunk vessels that it's liabilities in the oil spill should be limited to $27 million, based on its insurance coverage for the value of the Deepwater Horizon rig when it sunk.

-- Written by Eric Rosenbaum from New York.

RELATED STORIES:






>To contact the writer of this article, click here: Eric Rosenbaum.

>To follow the writer on Twitter, go to Eric Rosenbaum.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
APC $86.17 0.00%
BP $42.50 0.00%
RIG $20.15 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs