Anadarko Petroleum Corp. reported mixed results in the third
quarter of 2014 while earnings missed the Zacks Consensus Estimate
revenues beat the same. On a year-over-year basis, the top and
bottom line increased primarily on the heels of higher natural gas,
crude oil & condensates and natural gas liquids sales. Going
ahead, the premium properties in the Wattenberg, Eagleford and
Wolfcamp basins, and steady progress at the Lucius development
project in the Gulf of Mexico will likely boost the company's
production. However, Anadarko Petroleum's profitability is exposed
to volatile and cyclical oil, natural gas and NGL prices. The
company derives a major chunk of its revenues and earnings from
E&P operations. Lately, the boom in oil production has severely
depressed crude prices in the international market. Thus, we are
maintaining our Neutral recommendation on the stock.
Woodlands, TX-based Anadarko Petroleum Corporation (APC) is one
of the largest independent oil and natural gas exploration and
production (E&P) companies of the world. The company is
primarily engaged in the exploration, development, production,
gathering, processing and marketing of natural gas, crude oil,
condensate and natural gas liquids (NGLs). Anadarko Petroleum aims
at providing a competitive and sustainable rate of return to its
shareholders through exploration, acquisition and development of
oil and natural gas resources. Its strategy is to optimize its
asset portfolio and deliver long-term value to its stakeholders by
combining a large inventory of expansion opportunities in its
domestic operations with various offshore diversification
Anadarko Petroleum's core asset base includes positions in
onshore resource plays at the Rocky Mountain region, southern
United States, the Appalachian Basin and Alaska. Besides, the
company is a major independent producer in the deepwater Gulf of
Mexico (GoM) and has operations spread worldwide in East and West
Africa, Algeria as well as emerging opportunities in South Africa
and New Zealand. It also has E&P facilities in Brazil,
Mozambique, Liberia, C te d'Ivoire, Sierra Leone and Ghana.
Anadarko Petroleum primarily operates through three business
segments: Oil & Gas Exploration & Production, Midstream and
The Oil & Gas Exploration & Production segment explores
and produces natural gas, crude oil, condensate and NGLs.
The Midstream segment is engaged in gathering, processing,
treating and transportation of oil and gas produced at its own and
The Marketing segment manages sales of Anadarko's gas, oil and
NGLs. Anadarko Petroleum also markets petroleum largely sourced
from partners and producers located near its plants. The company
actively markets oil from Algeria, China and Ghana.
In 2013, Anadarko Petroleum added 528 million barrels of oil
equivalent (MMBOE) of proved reserves. At the end of 2013, the
company had total proved reserves of 2,792 MMBOE. It had a proved
reserve product mix comprising 55% natural gas, 30% oil &
condensates and 15% NGLS at year-end 2013.
Anadarko Petroleum Corporation (APC): Read the Full
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