Anadarko Petroleum Corporation
) posted fourth-quarter 2013 adjusted earnings of 74 cents per
share, missing the Zacks Consensus Estimate by 20.4%. Quarterly
earnings were also 18.7% lower than the year-ago level, primarily
due to a decrease in revenues, higher total costs and expenses
and an increase in outstanding shares.
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On a GAAP basis, the company reported a loss of $1.53 per share
versus earnings of 40 cents per share. The variance between GAAP
and adjusted earnings was due to the combined impact of losses on
derivatives, divestitures, impairments, third-party property
restoration and change in uncertain tax positions. In addition,
contingent loss associated with the Tronox Adversary Proceeding
and the deepwater horizon settlement and allied costs was also
responsible for the aforesaid difference.
Annual GAAP earnings were $1.58 per share, down 66.7% from the
year-ago earnings of $4.74 per share.
Anadarko Petroleum's total revenues of $3.3 billion in the
quarter lagged the Zacks Consensus Estimate by 11.1%. Reported
revenues edged down 2.1% year over year.
For 2013, total revenues were $14.58 billion, marginally missing
the Zacks Consensus Estimate of $14.59 billion. On a
year-over-year basis, the company's top line increased 8.7%
primarily on the back of higher natural gas, oil and condensate,
natural gas liquids ("NGL"), and gathering, processing, and
In the quarter under review, Anadarko Petroleum's sales volume
rose 8.8% year over year to 74 million barrels of oil equivalent
("MMBOE"), primarily on the back of strong contribution from the
Wattenberg, Eagleford and East Texas /North Louisiana horizontal
Favorable activity in the Wattenberg field, Eagleford Shale and
East Texas/North Louisiana horizontal play, and first oil from
the El Merck oil prospect in Algeria contributed to the
Realized prices for crude oil and condensate, natural gas and NGL
averaged $99.20 per barrel (up 1.5%), $3.46 per thousand cubic
feet (up 5.5%) and $40.30 per barrel (up 3.4%), respectively, in
the reported quarter.
Anadarko Petroleum's total costs and expenses climbed 6.9% year
over year to $3,123 million, primarily due to an increase in oil
and gas operating expenses and higher exploration expenses.
In fourth-quarter 2013, the company's operating margin was 6.4%,
down from the year-ago figure of 14.3%.
Interest expense during the quarter was $173 million, down 4.4%
from the year-ago figure due to lower long-term debt burden.
Anadarko Petroleum's cash and cash equivalents, as of Dec 31,
2013, were $3.7 billion versus $2.5 billion as of Dec 31, 2012.
Improvement in cash position was primarily due to the sale of
working interest in the Mozambique Offshore Area 1, a divestment
of non-operated interest in the Pinedale/Jonah field and sale of
the carried-interest agreement in Heidelberg.
Long-term debt as of Dec 31, 2013 was $13.1 billion versus $13.3
billion as of Dec 31, 2012.
In 2013, Anadarko Petroleum's net cash provided by operating
activities was $8.9 billion versus $8.3 billion in the prior-year
Capital expenditure was $8.5 billion in 2013, increasing from
$7.3 billion in the year-ago period.
) reported adjusted earnings of 96 cents per share in
fourth-quarter 2013, lagging the Zacks Consensus Estimate of
$1.09 per share.
Murphy Oil Corporation
) adjusted earnings from continuing operations were 67 cents per
share, missing the Zacks Consensus Estimate by 40.2%.
Occidental Petroleum Corporation
) fourth-quarter 2013 pro forma earnings were $1.72 per share,
beating the Zacks Consensus Estimate by 1.8%.
Anadarko Petroleum failed to maintain its earnings surprise
streak, as the company posted lower-than-expectation earnings in
the reported quarter. However, the initiatives taken by the
management to boost the exploration activity is appreciable.
Anadarko Petroleum currently engages in a series of exploration
projects in the resource-rich Gulf of Mexico, the U.S. onshore
operations and offshore Mozambique. We expect these initiatives
to boost the company's performance going forward.
Anadarko Petroleum currently has a Zacks Rank #3 (Hold).