Anadarko A Good Buy Right Now?

Not sure if Anadarko is a good buy or not. I see analysis on the company that suggests they could see a turnaround because of 'bullish' oil prices, but I'm not sure I'm ready to call this an oil bull market just yet, despite the new OPEC deal and the immediate price response to that. And when it comes to Anadarko, they've lost 30% of their market cap this year. They also saw production drop 20% in Q3. Growth prospects seem to be improving now, but I'm not sure on the timing ... 

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$APC has done some great work cutting costs--especially for transportation, but I'm not quite ready to buy into the turnaround...

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They lost a lot in the hurricanes, so chances of a turnaround might be a bit easier in terms of production 'growth'... 

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APC has indeed cut costs, but this could come at the expensive of production... not a good thing when oil prices are around $60

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Cost-cutting, yes, but Anadarko's expenses are up nonetheless, particularly from exploration and drilling--a good thing at $60 if they hope to survive.

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I believe the weakness could be a buying opportunity. Anadarko has been struggling with losses and negative free cash flows, due the low production volumes and high spending levels but it will likely turn around in 2018.

According to some reports, the company could post a 25% increase in operating cash flows nest year.  

 

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