Why Did This Oil Company Sell a Promising Prospect?
Normally, when an energy company sells its stake in a field, we tend to think of two things -- either the play has outlived its value, or the company is in financial trouble and needs the cash. But Anadarko Petroleum's recent $2.6 billion sale of part of its Mozambique gas find doesn't seem to fit the mold of those two explanations. So why exactly is the company looking to sell?
As promising as Mozambique may be as an LNG-export hub, it will take several years to develop the facilities and infrastructure. Anadarko may be a large exploration and production company, but sitting on those assets for a long time without generating cash just didn't make sense. Tune into the video below where Fool.com contributor Tyler Crowe explains why this sale makes sense in the grand scheme of things, and how Anadarko isn't alone in making these sorts of moves.
The article Why Did This Oil Company Sell a Promising Prospect? originally appeared on Fool.com.Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter: @TylerCroweFool.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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