Shares of Anadarko Petroleum Corp. tumbled 6.3% in active midday trade Thursday to a nine-month low, after the oil and gas exploration company said it would close more than 3,000 wells in response to the last week’s fatal home explosion in Firestone, Colo. The stock changed hands recently at $56.13, the lowest level seen since Sept. 16, while volume spiked to 7.9 million shares, or more than double the full-day average. The company said late Wednesday that the wells, which account for total production of about 13,000 barrels of oil equivalent per day, could remain shut for two to four weeks while inspections and testing of equipment can be conducted. Analyst Paul Grigel at Macquarie Research reiterated his overweight rating on the stock, saying he believed any impact from the shut in production will be limited. “We believe the ultimate impact on financials and the company is likely to be de minimis but do recognize this will likely be a near-term focus until the investigation by local fire officials is complete,” Grigel wrote in a note to clients. The stock has plunged 19% year to date, while the SPDR Energy Select Sector ETF has shed 11% and the S&P 500 has gained 6.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News
