Anadarko Earnings Fall But Top Forecasts

Anadarko Petroleum posted second-quarter earnings that fell 20% on higher tax payments but still topped analysts' forecasts as revenues spiked 83%. The independent oil and gas producer said it earned $652M ($1.39/share), excluding items, on revenue of $3.31B compared with earnings of $814M ($1.76/share) on revenue of $1.81B a year ago. Analysts had expected earnings of $0.79/share and revenue of $2.49B, on average. Income from continuing operations was $645M ($1.38/share). Operating income was $1.4B, up from $968M last year. Anadarko said cash flow from continuing operations ($229M) and discretionary cash flow ($174M) were reduced by $1.1B as a result of income tax payments associated with its divestiture program. The company already has sold assets worth at least $12.5B and plans to sell as much as $15 billion more this year. Total costs in the quarter jumped to $1.93B from $841M. Sales volumes rose to 52M barrels of oil equivalent from 36M BOE a year ago. The company also raised its production guidance for the year to a range of 189M-193M BOE, an increase of 3 million barrels from the previous midpoint. Anadarko shares rose 1% ahead of the report to close at $50.10 and added another 0.2% to $50.20 AH.

Sources: Press release, Bloomberg
Commentary: Anadarko Petroleum: Natural Gas Project Ahead Of Schedule • Where is the North American Natural Gas Market Headed? • Anadarko Petroleum: Avarice in Algiers
Stocks/ETFs to watch: APC. Competitors: XOM, COP. ETFs: IEO, PRFE, RYE

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