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Anadarko (APC) Q3 Earnings Miss, Revenues Beat Estimates

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Anadarko Petroleum Corporation 's APC third-quarter 2018 earnings of 82 cents per share missed the Zacks Consensus Estimate of 88 cents by 6.8%. However, the same reversed the year-ago quarter's loss of 77 cents.

On a GAAP basis, Anadarko Petroleum's bottom line was 72 cents per share against the prior-year quarter's loss of $1.27.

Total Revenues

In the reported quarter, Anadarko Petroleum's revenues of $3,697 million surpassed the Zacks Consensus Estimate of $3,453 million by 7.1%. Also, the top line soared 48.1% year over year. This strong performance was primarily driven by expanded U.S. onshore oil volumes.

Anadarko Petroleum Corporation Price, Consensus and EPS Surprise

Anadarko Petroleum Corporation Price, Consensus and EPS Surprise | Anadarko Petroleum Corporation Quote

Operational Highlights

In the quarter under review, the company's average daily sales volume was 682,000 barrels of oil equivalent per day (BOE/d) up 8.9% year over year. U.S. Onshore assets delivered sales volumes of 431,000 BOE/d on a divestiture-adjusted basis, an increase of 21.8% from the prior-year period.

The company's total costs and expenses in the third quarter declined 16.2% year over year to $2,718 million, primarily owing to lower exploration plus Oil and Gathering, processing and marketing expenses.

Interest expenses came in at $240 million, increasing 4.4% from $230 million in the year-earlier quarter.

Financial Condition

Anadarko Petroleum had cash and cash equivalents of $1,883 million as of Sep 30, 2018, down substantially from $4,553 million as of Dec 31, 2017.

Long-term debt as of Sep 30, 2018 was $15,755 million, reflecting a rise from $15,547 million as of Dec 31, 2017.

The company's net cash flow from operating activities during the quarter under consideration was $1,647 million compared with $639 million recorded in the prior-year period.

Guidance

Anadarko Petroleum expects average daily oil sales volume in the range of 674,000-728,000 BOE/d for the fourth quarter of 2018.

It expects capital expenditure in the band of $650-$950 million for fourth-quarter 2018.

Anadarko Petroleum anticipates an average daily oil sales volume in the band of 658,000-671,000 BOE/d for 2018.

It estimates 2018 capital expenditure between $4,500 million and $4,800 million. This capex view is after excluding $176 million for Powder River Basin acquisitions.

Zacks Rank

Anadarko Petroleum currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Upcoming Releases

Northern Oil and Gas, Inc. NOG is expected to report third-quarter 2018 earnings on Nov 8. It has an Earnings ESP of +10.30% and a Zacks Rank of 2.

Penn Virginia Corporation PVAC has an Earnings ESP of +6.38% and is a Zacks #2 Ranked stock. It is slated to report third-quarter 2018 earnings on Nov 14.

Parsley Energy, Inc. PE has an Earnings ESP of +2.27% and a Zacks Rank #1. It is scheduled to report third-quarter 2018 earnings on Nov 1.

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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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