The unconventional oil exchange traded fund is breaking out to a new all-time high as Anadarko Petroleum Corporation (NYSE: APC) surges on a settlement agreement.
The Market Vectors Unconventional Oil & Gas ETF (NYSEArca: FRAK), which has the largest weight in APC at 8%, rose 1.8% Thursday. The ETF is trading around $30.75 per share, topping its previous closing high of $30.36 on Oct. 21, 2013.
Anadarko shares jumped Thursday after its Kerr-McGee unit announced a $5.15 billion settlement to resolve environmental cleanup claims, ending two years of litigation, reports Nick Brown for Reuters.
“This settlement agreement with the Litigation Trust and the U.S. Government eliminates the uncertainty this dispute has created, and the proceeds will fund the remediation and cleanup of the legacy environmental liabilities and tort claims,” Anadarko Chief Executive Officer Al Walker said in a statement.
The Market Vectors Unconventional Oil & Gas ETF tracks the growing oil boom in North America as new extraction techniques help companies produce oil from shale beds and oil sands. [Capture the U.S. Oil Boom with the Unconventional Energy ETF]
According to the U.S. Energy Information Administration, the U.S. now produces more than 10% of total world oil production due to increased shale oil extraction.