Anadarko Petroleum Corp Earnings: The Streak is Broken

S&P 500 (NYSE:SPY) component Anadarko Petroleum Corporation (NYSE:APC) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for Anadarko Petroleum Corporation rose to $2.16 billion ($4.28 per share) vs. $216 million (43 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 6% to $3.45 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Anadarko Petroleum Corporation reported adjusted net income of 92 cents per share. By that measure, the company beat the mean estimate of 83 cents per share. Analysts were expecting revenue of $3.42 billion.

Quoting Management: “Anadarko delivered record operating results, generated more than $130 million of free cash flow and successfully appraised discoveries in Mozambique, the Gulf of Mexico and Ghana during the first quarter of 2012,” said Anadarko Chairman and CEO Jim Hackett. “The operating results were highlighted by record sales volumes, a year-over-year increase of 27,000 barrels per day from our liquids-rich U.S. onshore growth properties, and the startup of oil production at Caesar/Tonga in the Gulf of Mexico. In addition, we resolved the Algeria tax dispute in a mutually beneficial manner that resulted in a $1.8 billion benefit in the first quarter, of which we expect to receive approximately $1 billion in cash during 2012 and the balance during the first half of 2013. The resolution also included amended contract terms, which are expected to result in approximately 1.6 million barrels of additional oil volumes during 2012. This is reflected in our increased sales-volumes guidance range of 258 to 262 million BOE, with no corresponding increase in capital.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 34.4% to $3.54 billion in the fourth quarter of the last fiscal year. The figure rose 34.5% in the third quarter of the last fiscal year from the year earlier and climbed 43.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 85 cents versus a mean estimate of net income of 60 cents per share.

APC reported a profit in the latest quarter, breaking a two-quarter streak of losses. The company reported a net loss of $358 million in the fourth quarter of the last fiscal year and a loss of $3.05 billion in the third quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 87 cents per share, up from 71 cents ninety days ago. For the fiscal year, the average estimate has moved up from $3.19 a share to $4 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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