Click Here to Go Directly to the Story
Register/Subscribe
Home

 
 


U.S. EDITION
Full Table of Contents
 Cover Story
Up Front
Readers Report
Corrections & Clarifications
Technology & You
Books
Economic Viewpoint
Economic Trends
Industry Insider
Business Outlook

News: Analysis & Commentary
In Business This Week
Washington Outlook
International Business
International Outlook
Information Technology
Finance
Industrial Management
Media
The Corporation

People
Developments to Watch
BusinessWeek Lifestyle
The Barker Portfolio
Inside Wall Street
Figures of the Week
Editorials


INTERNATIONAL EDITIONS
International -- Readers Report
International -- Asian Business
International -- European Business
International -- Finance
International -- Int'l Figures of the Week
International -- Editorials
ONLINE FEATURES Book Reviews BW Video Columnists Interactive Gallery Newsletters Past Covers Philanthropy Podcasts Special Reports BLOGS Auto Beat Bangalore Tigers Blogspotting Brand New Day Byte of the Apple Economics Unbound Eye on Asia Fine On Media Green Biz Hot Property Investing Insights Management IQ NEXT: Innovation NussbaumOnDesign Tech Beat Working Parents TECHNOLOGY J.D. Power Ratings Product Reviews Tech Stats Wildstrom: Tech Maven AUTOS Home Page Auto Reviews Classic Cars Car Care & Safety Hybrids INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads


JULY 23, 2001

INSIDE WALL STREET

Ocean Energy Next?

 
By Gene G. Marcial
Gene Marcial

  STORY TOOLS
Printer-Friendly Version
E-Mail This Story

Related Items Chart: Plenty of Ebb and Flow
INSIDE WALL STREET

 Ocean Energy Next?

A Bit of Cheer from American Greetings

At Teva, the Pipeline Is Full
Consolidation rages in the oil patch: In the wake of Amerada Hess' just-announced acquisition of Triton Energy, who's next? Speculation has thickened that one target could be Ocean Energy (OEI ), the seventh-largest U.S. oil-and-gas exploration company in terms of production. Ocean is no stranger to dealmaking: It merged into Seagull Energy on Mar. 30, 1999--retaining the name Ocean Energy. Whispers are that Royal Dutch Petroleum, Kerr-McGee, and Anadarko Petroleum have looked into Ocean. With Amerada paying a 51% premium for Triton, some pros figure Ocean, now at 17 a share, is worth 25 to 30 a share in a buyout.

Ocean is an "attractive target because of its exploration inventory--superior to its peers--and it's one of the fastest-growing producers among its large-cap rivals," says Shannon Nome of J.P. Morgan Chase, who rates the stock a buy. Ocean has been increasing its already large inventory of "high-potential worldwide deepwater projects," she says. Nome expects Ocean to drill 27 to 30 deepwater wells this year. It holds interests in 4 million acres in West Africa, plus recently acquired acreage in Brazil. Its explorations--in such areas as Guinea, Angola, and Gulf of Mexico--could result in big discoveries, says Nome.

Royal Dutch owns 60% of Royal Dutch/Shell Group, the world's second-largest publicly traded oil company. Kerr-McGee recently formed a pact with Ocean for exploration in the Gulf of Mexico. Anadarko is also an active worldwide oil-and-gas explorer and producer.

Ellen Hannan of Bear Stearns says Ocean's high-quality properties have "distinguished it from its peers." She sees Ocean earning $1.81 a share in 2001, up from 2000's $1.30, with cash flow of $4.84, vs. 2000's $3.71. Ocean, as well as Royal Dutch, Kerr-McGee, and Anadarko, declined comment.


By Gene G. Marcial
Get BusinessWeek directly on your desktop with our RSS feeds.XML

Add BusinessWeek news to your Web site with our headline feed.

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video.

To subscribe online to BusinessWeek magazine, please click here.

Learn more, go to the BusinessWeekOnline home page
Back to Top

JULY
TODAY'S MOST POPULAR STORIES

  1. These Men Could Kill SarbOx
  2. This Year's Holiday Hit Toy: Zhu Zhu Pets
  3. America's Best Place to Raise Your Kids
  4. Wall Street Plays Hardball
  5. Abercrombie & Fitch Bargains for a Rebound

Get Free RSS Feed >>
  MARKET INFO
DJIA 10318.16 -14.28
S&P 500 1091.38 -3.52
Nasdaq 2146.04 -10.78

Portfolio Service Update

Stock Lookup

Enter name or ticker



Copyright 2001 , by The McGraw-Hill Companies Inc. All rights reserved.
Terms of Use | Privacy Policy

Media Kit | Special Sections | MarketPlace | Knowledge Centers
McGraw-Hill Cos.