This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Energy Winners & Losers: BP, Apache

NEW YORK ( TheStreet) -- BP (BP - Get Report) and Apache (APA - Get Report) were in the news a year ago when Apache inked a deal to buy a block of assets from BP, and both were back in the news on Tuesday for M&A reasons, although moving in different directions.

BP finally came out and said what the market has already expected, that its deal with Russia's Rosneft to develop Arctic assets is going nowhere fast. Apache, meanwhile, said on Tuesday that it was increasing its capital spending budget in 2011 from $7.5 billion to $8.1 billion, at least partially to exploit opportunities in the U.S. Permian Basin and in Canada, areas where it acquired assets from BP in July 2010.

BP CEO Robert Dudley stopped short of saying "never" in the Tuesday announcement that the Russian Arctic deal had failed -- in fact, it was just the legal deadline to reach a deal that had passed -- though BP's last-ditch effort to save the deal was shot down by Rosneft and rumors are rampant that Rosneft is looking elsewhere.

Dudley said in the release, "BP remains committed to Russia, to working constructively with AAR in TNK-BP and to our existing good relationship with Rosneft. All parties have worked hard to reach an acceptable resolution, as we believe it could offer significant benefits to BP shareholders, to Rosneft, AAR and Russia."

Phil Weiss, analyst at Argus Research, said on Tuesday that the offer BP and TNK-BP -- its Russian natural gas partner -- made to Rosneft for TNK-BP to take over the Arctic deal never made much sense, since BP is the company with the drilling expertise, and TNK-BP, on the other hand, has no experience in oil drilling.

"It didn't seem to me they would come to terms unless they could buy out AAR the TNK-BP partners ," Weiss said.

BP shares were flat in trading on Tuesday as many integrated oil majors declined. "It's a black mark for BP shares that it didn't happen, but I think it's already been priced into the shares,' Argus Research's Weiss said. In fact, as many of BP's oil major peers had rally this year on the higher crude oil prices, BP shares remain down 4% year-to-date.

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
APA $65.86 -1.30%
BP $41.43 -0.74%
XOM $87.46 -0.18%
AAPL $128.97 -0.30%
FB $80.18 0.73%

Markets

DOW 18,114.33 -89.04 -0.49%
S&P 500 2,097.23 -10.55 -0.50%
NASDAQ 4,965.1730 -14.7280 -0.30%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs