Anadarko Petroleum Corporation (APC) is another oil exploration company that attracted my interest because they have contracts with ENSCO and Rowan for ultra deepwater drillships and are still considered a growth company.
Oil production is split between US and International for 2014 but if you compare with last year's numbers it's interesting to see US production alone went from 96 to 146 million barrels of oil per day (MBOPD) versus International growth of 62 to 92 MBOPD. Further almost all capital investment for 2014 is allocated to the lower 48 states with large chucks dedicated to expanding the profitable Wattenberg field in Colorado and Delaware basin/Eagleford fields in Texas where wells counts have doubled since last year.
Capital expenditure paints the picture of where you get the most bang for your buck and right now that's in the US. The bulk of the capital will be used to expand operations in the Rockies and Texas so I'll be paying attention to their success in those regions. Considering Anadarko is only a few points off it's 52 week high I won't be buying any stock unless it drops low enough to justify the higher P/E and recent lackluster ROA/ROE track record. At the moment I don't see any advantage Anadarko has over their competition so I'm not willing to pay up for it.
