Anadarko Petroleum Corporation ( APC ) posted net
earnings from continuing operations of $1.08 per share for the
first quarter of 2013, breezing past the Zacks Consensus Estimate
as well as the year-ago earnings by 17.4%.
Earnings outperformed on the back of higher contribution from
Anadarko's U.S. onshore assets, successful property sales and
encouraging results from the deepwater Gulf of Mexico (GoM).
On a GAAP basis, Anadarko Petroleum Corporation reported
earnings of 91 cents per share versus $4.28 per share in the
year-ago quarter. The disparity between operating and GAAP earnings
during the quarter of 17 cents was due to a 31 cent loss from
unrealized derivatives, 4 cent impairment charges and an 18 cent
gain from divestitures.
Revenue of $3.9 billion in the quarter beat the Zacks Consensus
Estimate by 11.3% and the year-ago figure of $3.4 billion. The
year-over-year growth in revenue was mainly due to 40.8% and 5.9%
upsurges in natural gas as well as oil and condensate sales,
Anadarko Petroleum Corporation's sales volume in the quarter
rose 10.9% year over year to 71 million barrels of oil equivalent
(MMBOE) or 793 thousand BOE per day (MBOE/d). This was primarily
due to expansion in crude oil and natural gas production volumes in
the U.S. and international operations.
Liquids sales averaged 345 MBOE/d, up 14.6% year over year. The
increase was driven by the company's five major U.S. onshore growth
plays, namely, Wattenberg, Eagleford, Marcellus, East Texas HZ and
Permian. Anadarko Petroleum Corporation also encountered first oil
in the El Merck prospect in Algeria.
Realized prices for crude oil and condensate, natural gas and
NGL averaged $102.97 per barrel (down 7.3%), $3.33 per thousand
cubic feet (up 28.1%) and $38.17 per barrel (down 19%),
respectively, in the reported quarter.
Total cost and expenses during the quarter were $2.6 billion, up
a whopping 249.5% from the year-ago quarter. In the previous year
quarter the company benefited from favorable adjustments relating
to the Algerian profit tax settlement.
Operating income of Anadarko Petroleum Corporation fell 52.3%
year over year to $1.3 billion. The cost inflation overshadowed the
revenue growth leading to reduction in profit.
Interest expense during the quarter was $164 million, lower than
$186 million in the year-ago quarter.
Cash and cash equivalents as of Mar 31, 2013, were $3.7 billion
versus $2.5 billion as of Dec 31, 2012.
Long-term debt as of Mar 31, 2013 was $13.7 billion versus $13.3
billion as of Dec 31, 2012.
Cash flow from operations in the first quarter of 2013 was $2.5
billion versus $1.9 billion in the year-ago quarter.
Capital expenditure during the quarter was $1.7 billion,
decreasing marginally from $1.8 billion in the year-ago
Guidance for 2013
Anadarko Petroleum Corporation expects sales volume in the
second quarter and full year 2013 in the range of 67-69 MMBOE and
279-287 MMBOE, respectively.
Marketing and gathering margins for the second quarter and 2013
are expected in the band $25-$35 million and $150-$170 million,
General and administrative expenses for the second quarter and
2013 are estimated in the band $280-$290 million and $1.1-$1.2
Capital expenditure of Anadarko Petroleum Corporation for the
second quarter and full year 2013 is projected in the vicinity of
$1.7-$1.9 billion and $7.2-$7.6 billion respectively.
Other Exploration and Production Operators
Besides Anadarko Petroleum Corporation, other exploration
companies recently posted earnings are:-
Ultra Petroleum Corporation ( UPL ) reported earnings
of 38 cents per share, surpassing the Zacks Consensus Estimate by
Statoil ASA ( STO ) posted first
quarter 2013 earnings of 66 cents per ADR, missing the Zacks
Consensus Estimate of 75 cents.
Noble Energy Inc. (NBL) recorded earnings per
share of $1.48, exceeding the Zacks Consensus Estimate by
Anadarko Petroleum Corporation sustained its good run posting
yet another earnings surprise in the first quarter of 2013. The
company's pursuit of high-quality exploration prospects in the
domestic as well as international markets acts as the key catalyst
The Shenandoah and Coronado oil plays in the GoM will be the
principal production drivers in the coming quarters. El Merck will
also add to Anadarko Petroleum Corporation's output basket. Going
forward, the new discoveries of Phobos prospect in GoM and the
natural gas reservoir in Mozambique have encouraging potential.
Despite the positives, expectation of depressed natural gas
prices could prove to be a deterrent to growth. Moreover, failure
to contain rising costs could curb profitability. Anadarko
Petroleum Corporation presently retains a Zacks Rank #3 (Hold).
Based in The Woodlands, Texas, Anadarko Petroleum Corporation is
primarily engaged in the exploration, development, production,
gathering, processing and marketing of natural gas, crude oil,
condensate and NGLs.ANADARKO PETROL (APC): Free Stock Analysis
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