Anadarko Petroleum Corp.
) posted net earnings from continuing operations of $1.13 per
share for the third quarter of 2013, falling behind the Zacks
Consensus Estimate by 4.2%. However, earnings saw a 34.5% upswing
from the year-ago quarter.
Accelerated production from the U.S. domestic plays as well as
from the El Merck oil prospect in Algeria was the primary
On a GAAP basis, Anadarko Petroleum reported earnings of 36
cents per share versus 24 cents per share in the year-ago
quarter. The disparity between operating and GAAP earnings was
due to a 1 cent impact from third-party well and platform
decommissioning obligation, a 1 cent gain from divestitures, a 74
cent charge from impairments, a 4 cent loss from unrealized
derivatives, and a 1 cent charge from deepwater horizon
settlement and related costs.
Revenues of $3.9 billion in the quarter surpassed the Zacks
Consensus Estimate by 2.4% as well as the year-ago figure of $3.3
billion. The year-over-year growth in revenue was mainly due to a
31.3% and 10.7% jump in natural gas and liquids sales,
Anadarko Petroleum's sales volume in the quarter rose to 71
million barrels of oil equivalent (MMBOE) from the corresponding
year-ago level of 68 MMBOE. This was primarily due to staggering
production from the Wattenberg, Eagleford as well as East Texas
Favorable activity in the Delaware Basin of West Texas also
contributed to the production growth.
Realized prices for crude oil and condensate, natural gas and
natural gas liquids averaged $106.05 per barrel (up 6.1%), $3.33
per thousand cubic feet (up 24.7%) and $38.49 per barrel (up
7.1%), respectively, in the reported quarter.
Total operating cost shot up 25.8% year over year to $3,164
million mainly due to a 14.9% and 17.3% respective increase in
oil and gas operating expenses as well as gathering, processing,
and marketing overheads.
Cost escalation outweighed the revenue upsurge leading to a
15.6% plunge in operating profit to $689.0 million from the
Interest expense during the quarter was $177 million, lower
than $185 million in the year-ago quarter.
Cash and cash equivalents as of Sep 30, 2013, were $3.9
billion versus $2.5 billion as of Dec 31, 2012 aided by the $2.64
billion proceeds that Anadarko gained from the sale of 10%
working interest in the Mozambique Offshore Area 1.
Long-term debt as of Sep 30, 2013 was $13.6 billion versus
$13.3 billion as of Dec 31, 2012.
Cash flow from operations in the third quarter of 2013 was
$1.8 billion versus $2.2 billion in the year-ago quarter.
Capital expenditure during the quarter was $2.3 billion,
increasing from $1.8 billion in the year-ago period.
Anadarko Petroleum expects sales volume in the fourth quarter
in the range of 70-73 MMBOE. For full year 2013, the company
revised its volume guidance to 281-284 MMBOE from the prior
Marketing and gathering margins for the fourth quarter and
2013 are expected in the band of $40-$50 million and $140-$150
General and administrative expenses for the fourth quarter and
2013 are estimated in the range of $275-$325 million and
$1.05-$1.1 billion, respectively.
Anadarko Petroleum plans capital expenditure for the fourth
quarter and full year 2013 in the vicinity of $2.1-$2.3 billion
and $7.4-$7.6 billion, respectively.
Noble Energy Inc.
) reported adjusted earnings per share of 97 cents for the third
quarter 2013, edging out the Zacks Consensus Estimate by
EXCO Resources Inc.
) reported third quarter 2013 adjusted earnings of 4 cents per
share, missing the Zacks Consensus Estimate of 10 cents.
Murphy Oil Corporation
) posted third-quarter 2013 earnings of $1.34 per share from
continuing operation, below the Zacks Consensus Estimate of $1.49
Anadarko's earnings streak came to an end in the third quarter
of 2013 as its bottom line floundered on rising expenses.
However, earnings witnessed a sharp climb year over year.
The company's series of exploration ventures in the
resource-rich Gulf of Mexico and encouraging production
activities from the U.S. onshore operations will continue to lend
upside to earnings. In addition, Anadarko's ambitious Lucius
development project is on schedule which will spur the company's
reserve trajectory in the coming years.
Anadarko Petroleum Corp. presently retains a Zacks Rank #3
ANADARKO PETROL (APC): Free Stock Analysis
MURPHY OIL (MUR): Free Stock Analysis Report
NOBLE ENERGY (NBL): Free Stock Analysis
EXCO RESOURCES (XCO): Free Stock Analysis
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