There I was, resting in comfortably in my chair on the 9th floor, when the news flashed across my screen. Anadarko has agreed to pay $4 billion to BP for its share of all “liability” of the spill.
This puts to rest a saga, in my eyes. A grand and profitable trade I underwent last year when the well blew up in the Gulf of Mexico. I bought APC near the bottom, and sold it at the beginning of this year for more than $70 a share. The gain was under 100% gains inside of a year, which annualizes to a most gargantuan victory.
I have no idea why APC agreed to settle, but I’d be curious what the most exact terms of the deal are. I can’t imagine that APC wanted to settle unless BP offered them something else to sweeten the arrangement.
I have not withheld before now that I thought APC could fight to get off Scott-free.
BP must have been getting desperate, unless they were to be hit with a grotesque negligence lawsuit. It will be interesting to witness whether or not Anadarko comes out later with a “separate” agreement or contract or partnership… with some very favorable terms.
Both stocks are sprinting higher on the news.
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Cain….the liabilities that the other companies face is earth shaking. Believe me APC is very happy to be out of this trap with ONLY a $4 bill gut shot. I have people telling me that RIG could be mortally wounded.
Yes, but RIG was actually on the platform.
APC had a purely investment based presence; no personel were even on the well. If BP had been found guilty of gross negligence, then APC would have been contractually off the hook.
Only thing I can think of is it really clears things up for a potential buyout of APC. Maybe they are getting close to selling out and didn’t want the liability issue holding up a deal for years?
made the same play on apc when that well blew. that was a good trade.yesterday they popped big while everything else was red.go figure.