Anadarko Petroleum Corp Earnings Cheat Sheet: Two Straight Quarters of Profit Broken by a Loss

S&P 500 (NYSE:SPY) component Anadarko Petroleum Corporation (NYSE:APC) reported its results for the third quarter. Anadarko Petroleum is engaged in the exploration and production of oil and natural gas.

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Anadarko Petroleum Earnings Cheat Sheet for the Third Quarter

Results: Loss widened to $3.05 billion ($6.12 per diluted share) from $26 million (loss of 5 cents per share) in the same quarter a year earlier.

Revenue: Rose 25% to $3.2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: APC reported adjusted net income of 66 cents per share. By that measure, the company fell in line with the mean estimate of 66 cents per share. It fell short of the average revenue estimate of $3.27 billion.

Quoting Management: “Our third-quarter operating activities generated very strong free cash flow, reflecting our focus on increasing higher-margin liquids sales volumes,” Anadarko Chairman and CEO Jim Hackett said. “Overall, liquids sales volumes grew by approximately 10 percent compared to the third quarter of last year, with onshore U.S. oil sales volumes increasing by about 30 percent over the same time period. The growth in liquids sales volumes was complemented by strong netback pricing, as about 70 percent of our total liquids sales volumes are based on Brent-equivalent indices, achieving a $10 per-barrel premium over WTI pricing. Moreover, price realizations for our NGL (natural gas liquids) sales volumes were 62 percent of WTI oil pricing, compared to 50 percent in the third quarter of last year.”

Key Stats:

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the second quarter, it topped the mark by 18 cents, and in the first quarter, it was ahead by 16 cents.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $544 million in the second quarter, a profit of $216 million in the first quarter and $111 million in the fourth of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 93 cents a share to 63 cents over the last ninety days. The average estimate for the fiscal year is $3.21 per share, down from $3.57 ninety days ago.

Competitors to Watch: Chevron Corporation (NYSE:CVX), Devon Energy Corporation (NYSE:DVN), BP plc (NYSE:BP), ConocoPhillips (NYSE:COP), Exxon Mobil Corporation (NYSE:XOM), Chesapeake Energy Corp. (NYSE:CHK), Newfield Exploration Co. (NYSE:NFX), EOG Resources, Inc. (NYSE:EOG), Plains Exploration & Production Co. (NYSE:PXP), and Marathon Oil Corporation (NYSE:MRO).

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(Source: Xignite Financials)