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Anadarko (APC) Q3 Loss Wider than Expected, Revenues Up

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Anadarko Petroleum CorporationAPC reported third-quarter 2016 adjusted loss of 89 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents. In the year-ago quarter, the company had recorded a loss of 71 cents.

On a GAAP basis, Anadarko Petroleum's loss amounted to $1.61 per share in the third quarter of 2016. In the prior-year comparable period, it had reported GAAP loss of $4.41 per share. The difference between the GAAP and adjusted figures was due to an additional one-time item of 72 cents, affecting comparability.

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Total Revenue

In the reported quarter, Anadarko Petroleum's revenues of $1,893 million missed the Zacks Consensus Estimate of $2,178 million by 13.1%. Revenues, however, were up 12.1% year over year.

Operational Highlights

In the reported quarter, Anadarko Petroleum's average daily sales volume dipped 0.9% to 780,000 barrels of oil equivalent per day (BOE/d).

Quarterly sales volume of natural gas was 2,003 million cubic feet per day (MMcf/d), down 8.4% from the year-ago quarter level of 2,186 MMcf/d. Crude oil and condensate, and NGL sales volumes were 317 thousand barrels per day (MBbls/d) (up nearly 5.3%) and 129 MBbls/d (up 5.7%), respectively.

Anadarko Petroleum's total costs and expenses declined 36.6% year over year to $2,686 million primarily due to lower exploration, operating and transportation expenses, as well as a decline in depreciation, depletion and amortization.

Interest expenses amounted to $220 million, up nearly 10.6% from $199 million incurred a year ago.

ANADARKO PETROL Price, Consensus and EPS Surprise

ANADARKO PETROL Price, Consensus and EPS Surprise | ANADARKO PETROL Quote

Financial Condition

Anadarko Petroleum had cash and cash equivalents of $3,980 million as of Sep 30, 2016, up substantially from $939 million as of Dec 31, 2015.

Long-term debt as of Sep 30, 2016 was $15,090 million, down from $15,636 as of Dec 31, 2015.

Anadarko Petroleum's net cash from operating activities during the quarter was $785 million, compared with $1,127 million in the prior-year period.

In the reported quarter, the company's capital expenditure was $697 million, down from $1,352 million in the year-ago quarter.

Guidance

Anadarko expects average daily sales volumes of 696,000-717,000 BOE/d for fourth-quarter 2016 and 716,000-721,000 BOE/d for the full year.

The company expects capital expenditure to be $885-$985 million in the fourth quarter and $2,850-$2,950 million in the full year.

Upcoming Peer Releases

Concho Resources, Inc. CXO is scheduled to report results on Nov 8, after the market closes . The Zacks Consensus Estimate stands at 20 cents. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Comstock Resources Inc. CRK is scheduled to report results on Nov 8, before the market opens. The Zacks Consensus Estimate is a loss of $2.14. The stock carries a Zacks Rank #2.

W&T Offshore Inc. WTI is scheduled to report results on Nov 2, after the market closes. The Zacks Consensus Estimate stands at a loss of 43 cents. The stock sports a Zacks Rank #2.

Zacks Rank

Anadarko Petroleum Corporation 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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