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Anadarko (APC) Q1 Loss Narrower than Expected, Revenues Lag

Anadarko Petroleum CorporationAPC reported a first-quarter 2016 adjusted loss of $1.12 per share, narrower than both the Zacks Consensus Estimate of a loss of $1.19 and the year-ago loss of 72 cents.

On a GAAP basis, the company registered a loss per share of $2.03, much narrower than the year-ago loss of $6.45. The difference between GAAP and adjusted figure was due to additional one-time loss of 91 cents, affecting comparability.

Total Revenue

In the reported quarter, Anadarko Petroleum's revenues of $1,674 million missed the Zacks Consensus Estimate of $1,815 million by 7.8%. Revenues also plunged 27.9% year over year.

Operational Highlights

In the reported quarter, Anadarko Petroleum's average daily sales volume declined 11.5% year over year to 827,000 barrels of oil equivalent per day (BOE/d).

The quarterly sales volume for natural gas was 2,303 million cubic feet per day (MMcf/d), down 15.9% year over year from 2,738 MMcf/d. Crude oil and condensate, and NGL sales volume were 315 thousand barrels per day (MBbls/d), down 6%, and 128 MBbls/d, down 10.5%, respectively.

Realized prices for natural gas, crude oil and condensate, and NGL averaged $1.75 per thousand cubic feet (down 32.7%), $29.65 per barrel (down 37.1%) and $15.32 per barrel (down 14.9%), respectively, in the quarter under review.

Anadarko Petroleum's total costs and expenses decreased 61.1% year over year to $2,538 million, primarily due to the absence of impairments and lower exploration expenses.

Interest expenses of $220 million inched up 2% from $216 million in the year-ago quarter due to a rise in long-term debt.

Financial Condition

Anadarko Petroleum had cash and cash equivalents of $2,947 million as of Mar 31, 2016, substantially up from $939 million as of Dec 31, 2015.

Long-term debt as of Mar 31, 2016, was $15,726 million, up from $16,636 as of Dec 31, 2015.

Anadarko Petroleum's net cash used in operating activities during the quarter was $137 million, compared with $4,504 million in the prior-year period.

In the reported quarter, the company's capital expenditure was $896 million, down from $1,822 million in the year-ago quarter.

Guidance

Anadarko expects average daily sales volume in the range of 780,000-802,000 BOE/d for second-quarter 2016 and 770,000-781,000 BOE/d for 2016.

The company expects capital expenditure to be $700-$800 million in the second quarter and $2,600-$2,800 million in 2016.

Upcoming Peer Releases

Murphy Oil Corporation MUR is scheduled to report on May 4, after the market closes. The Zacks Consensus Estimate stands at a loss of 87 cents.

Noble Energy, Inc. NBL is scheduled to report on May 4, before the market opens. The Zacks Consensus Estimate stands at a loss of 53 cents.

WPX Energy, Inc. WPX is scheduled to report on May 5, before the market opens. The Zacks Consensus Estimate stands at a loss of 20 cents.

Zacks Rank

Anadarko Petroleum currently carries a Zacks Rank #3 (Hold).

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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 Nasdaq, Inc.


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

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