HOUSTON, July 30 (Reuters) - Anadarko Petroleum Corp is studying ways the company could wring more value from the mineral interests it holds on more than 8 million acres (3 million hectares) in the Western United States, its chief financial officer told investors on Wednesday.
In data released on Tuesday, Anadarko said it had $385 million in royalty revenue from acreage that produces oil and gas, coal and soda ash, a figure that could grow to $770 million for the year.
“We’re spending a lot of time right now looking at those different cash flow streams, understanding different ways we might accelerate value associated with them, and that’s something that we want to take our time in doing,” Bob Gwin, Anadarko’s CFO told investors on the company’s earnings call.
Gwin said the company was looking at a number of ways to accelerate the value of its minerals rights. The company already benefits by leasing mineral acreage to others to drill, he noted.
Another oil and gas producer, Apache Corp, has told Reuters it may look at options to unlock the value of its mineral rights.
Two successful deals have stirred interest among investors in mineral rights. Viper Energy Partners LP and Canada’s Prairie Sky Royalty Ltd this year have bundled the royalties generated by their mineral rights into subsidiaries and then listed them in public offerings.
“Ultimately, whether Anadarko eventually chooses to monetize these assets or not, identification of the revenue stream and attractive growth profile should highlight the attractive value of this enviable position,” analysts at energy-focused investment bank Simmons & Co said in a note to clients.
After the close of trading on Tuesday, Anadarko reported a profit that topped Wall Street estimates on higher than expected output of oil and natural gas.
The company’s shares were down 22 cents at $109.01 in midday New York Stock Exchange trading. (Reporting by Anna Driver; Editing by Terry Wade and Marguerita Choy)