The firm noted the company underperformed in the sector but contends that the settlement of the Tronox case removes major overhang from the stock.
Late last week, news broke that Anadarko and its Kerr-McGee unit would pay $5.15 billion in the settlement. Creditors of the bankrupt paint materials maker Tronox filed a $20.8 billion environmental damage claim against Anadarko's Kerr-McGee unit. U.S. Bankruptcy Judge Allan Gropper ruled in December that Kerr-McGee improperly unloaded its environmental liabilities into Tronox before Anadarko took it over.
Anadarko Petroleum Corp. fell 2.1% to $98.93 at 11:11 a.m. on Monday.
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TheStreet Ratings team rates ANADARKO PETROLEUM CORP as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANADARKO PETROLEUM CORP (APC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."