Anadarko Petroleum Corporation (APC): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


Anadarko Petroleum Corp. reported weak financials in the fourth quarter of 2014. Its earnings and revenue widely missed Zacks Consensus Estimates and also dropped year over year. The decline can primarily be attributed to lower prices for crude oil and condensate and NGL sales. Anadarko decided to lower its capital investments significantly in 2015 from 2014 levels, primarily due to the challenges caused by the soft global crude prices. The company might also curtail its production expansion plan if the weakness in crude prices persists. Thus, we are maintaining our Underperform recommendation.


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 activities.

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 Marketing.

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 third-party facilities.

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.

Source: Company

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: APC

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