Anadarko Petroleum Corporation (APC): Should You Go Ahead And Buy?

Devon Energy Corp (NYSE:DVN) is another independent energy company engaged in oil and gas exploration and production. Devon also had a disappointing Q1 with a $1.3 billion loss ($3.34 per-share loss) compared to $393 million ($0.97 per-share profit) in Q1 2012. The loss was mainly due to a $1.9 billion charge related to low prices for natural-gas liquids and crude oil. However, more growth is expected for Devon over the long term with its broad portfolio of growth-oriented oil and gas assets, backed by a healthy balance sheet.

Compared to Apache and Devon, Anadarko has a higher net margin, ROE, and ROA. Anadarko also has higher revenue growth compared to the industry average. With $3.7 billion cash on hand at the end of Q1, 2013, Anadarko continues to strengthen its balance sheet.

As for the share-price performance, Anadarko continues to be on a long-term uptrend since November 2012. Anadarko has an uptrend support near $80. Anadarko is also trading above its 50-day and 200-day moving averages.

Bottom line

Anadarko continued to deliver with another solid quarterly report. Management has done a great job monetizing assets and increasing production. There is reason to be optimistic about the 2013 outlook. In the long term, there is more upside potential for this solid E&P energy company.

Disclaimer: Investors and traders are recommended to do their own due diligence and research before making any trading/investing decisions.

The article This E&P Energy Play Continues to Impress originally appeared on Fool.com and is written by Nick Chiu.

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