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Anadarko Petroleum Corporation (APC) is scheduled to report its Q2 2012 results on July 31, 2012, before market opens. The street expects EPS and revenue of $0.77 and $3.38B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from APC and the news from its closest competitors.

Anadarko Petroleum Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.92 EPS, beating analyst estimates of $0.83.

Anadarko Petroleum Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $0.77 based on 29 analysts' estimates, down from $1.14 a year ago. Revenue estimates are $3.38B, down from $3.68B a year ago. The median target price by analysts for the stock is $97.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 11, 2012, FBR Capital reiterated Mkt Perform rating for the company.
  • On May 2, 2012, Barclays reiterated Overweight rating for the company.
  • On March 14, 2012, Barclays Capital reiterated Overweight rating for the company.
  • On March 13, 2012, Stifel Nicolaus upgraded the company from Hold to Buy.
  • On March 6, 2012, Global Hunter Securities initiated Buy rating for the company.
  • On February 8, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
  • On January 26, 2012, Barclays Capital reiterated Overweight rating for the company.

Latest News

  • On July 13, 2012, Reuters reported that a trial between oil and gas producer Anadarko Petroleum Corp. and paint materials company Tronox Incorporated has been adjourned for one week so the two companies can try to hammer out a settlement of their $25 billion dispute, according to a court filing.
  • On July 12, 2012, Petroleo Brasileiro SA Petrobras announced a discovery of oil of 15 API (American Petroleum Institute) in the post-salt Espirito Santo Basin, in the Concession Concessao BM-ES-24 (Block ES-M-661), located 58 kilometers away from the city of Vitoria in the Espirito Santo State, Brazil.
  • On July 2, 2012, Anadarko Petroleum Corp. announced it has signed a definitive agreement with an undisclosed party to enter into a joint-venture capital carry arrangement for Anadarko's ownership in the Gulf of Mexico Lucius development project.
  • On May 15, 2012, Anadarko Petroleum Corp. announced that it has discovered a new, major natural gas accumulation approximately 20 miles (32 kilometers) northwest of its Prosperidade complex within the Offshore Area 1 of the Rovuma Basin offshore Mozambique.
  • On April 12, 2012, Enterprise Products Partners LP, Anadarko Petroleum Corporation and DCP Midstream, LLC announced an agreement to design and construct a new natural gas liquids (NGL) pipeline that will originate in the Denver-Julesburg Basin (DJ Basin) in Weld County, Colorado and extend approximately 435 miles to Skellytown, Texas in Carson County.
  • On March 9, 2012, Anadarko Petroleum Corp. announced that it has reached an agreement with Sonatrach to resolve the dispute regarding Sonatrach's implementation of Algeria's 2006 exceptional profits tax (TPE).
  • On February 21, 2012, Anadarko Petroleum Corp. announced that its Board of Directors has promoted Al Walker, the Company's President and Chief Operating Officer, to the position of President and CEO. Jim Hackett, who was named Anadarko's CEO in December of 2003, will continue serving the company in the newly created position of Executive Chairman.
  • On February 21, 2012, Reuters reported that the consortium formed by Repsol YPF SA (Repsol), Anadarko Petroleum Corp (Anadarko) and Tullow Oil PLC (Tullow) has announced the discovery of hydrocarbons at the offshore Jupiter-1 well, which is located in Sierra Leone.
  • On February 15, 2012, Dow Jones reported that BP Plc announced that the Company has received an approval from Chinese government for the natural gas exploration at the 43/11 deepwater block in the South China Sea. The Company will hold 40% interest of the project during exploration phase and 20% interest during production works.
  • On February 7, 2012, Anadarko Petroleum Corp. announced that it is on the way toward meeting objective of 3 billion barrels of oil equivalent of proved reserves by fiscal 2014.

Competitors

BP plc (BP), ConocoPhillips (COP), EOG Resources (EOG), Southwestern Energy (SWN), and Exxon Mobil (XOM) are considered competitors for Anadarko Petroleum and the table below provides the key metrics for these companies and the industry.

Anadarko Petroleum Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

APC Chart
(Click to enlarge)

APC data by YCharts

Competitors' Latest Development

  • On July 24, 2012, Reuters reported that Russian state oil company Rosneft had expressed its interest in buying BP's stake in Anglo-Russian oil firm TNK-BP and would enter talks with the British oil major.
  • On July 18, 2012, Reuters reported that BP Plc has made a small gas find in the Norwegian Sea, with reserves preliminary estimated at between 1.2 and 2.3 billion cubic meters, in a license shared with Statoil ASA, E ON AG and Polskie Gornictwo Naftowe i Gazownictwo SA. The wildcat well drilled to a total vertical depth of 2,923 meters below the sea surface proved gas about 20 kilometers north of the Skarv field and about five kilometers east of the Marulk field.
  • On July 18, 2012, The Economic Times reported that Reliance Industries Ltd and BP plc have warned that eastern offshore KG-D6 gas fields will stop producing in 2015 unless the government approves investments needed to keep the nation's gas fields alive.
  • On July 18, 2012, Reuters reported that a group of Soviet-born tycoons had notified BP Plc of its intention to start talks with the British oil major on increasing its stake in TNK-BP Holding.
  • On July 12, 2012, Reuters reported that U.S. workplace safety regulators plan to announce a settlement with BP Plc's U.S. refining subsidiary over safety violations found at the company's Texas City, Texas, refinery in 2009.
  • On July 9, 2012, RosBusinessConsulting reported that Alfa-Access-Renova (AAR)Consortium plans to acquire half of BP Plc's 50% stake in the joint venture TNK-BP Holding OAO. Following this, AAR Consortium would increase its stake in TNK-BP Holding OAO to 75%. The Consortium intends to notify BP Plc of its intention until July 19, 2012.
  • On July 6, 2012, The Wall Street Journal reported that Statoil ASA and other companies represented by Norway's Oil Industry Association have threatened to lock out workers and shut down production on the Norwegian continental shelf starting Tuesday in hopes of forcing an end to a 12-day strike that has put upward pressure on oil prices and crimped revenue.
  • On July 5, 2012, Reuters reported that Exxon Mobil Corp reported a snag in the number 2 amine treater at its 560,640 barrel-per-day (bpd) refinery in Baytown, Texas, according to a filing with the U.S. National Response Center.
  • On July 4, 2012, Dow Jones reported that a group of Chinese fishermen have sued ConocoPhillips in a U.S. court, seeking over $130 million in compensation for an oil spill off China's coast last year.
  • On July 4, 2012, The Economic Times reported that Oil & Natural Gas Corporation Limited (ONGC) is in final-stage talks to purchase a stake in some of the Canadian oil sands assets owned by ConocoPhillips.
  • On June 29, 2012, Dow Jones reported that a USD20 billion Australian gas-export joint venture (JV) involving ConocoPhillips and Origin Energy Limited had finalized a gas sales deal with Kansai Electric Power Co. The Australian Pacific LNG venture, which also includes China Petrochemical Corp., said it's on track to make a final investment decision on a second liquefied natural gas, or LNG, processing unit by mid-2012.
  • On June 26, 2012, BP Plc announced that it has agreed to sell its interests in the Alba and Britannia fields in the UK North Sea to Mitsui & Co., Ltd. for $280 million in cash.
  • On June 26, 2012, Reuters reported that Exxon Mobil Corp reported a leak in a supply line on the T1 tower at its 502,000 barrel per day (bpd) refinery in Baton Rouge, Louisiana, that led to a release of benzene, according to a filing with the National Response Center.
  • On June 25, 2012, BP Plc announced that it has agreed to sell its interests in the Jonah and Pinedale upstream operations in Wyoming to Linn Energy, LLC. Under the agreement, Linn Energy has agreed to pay BP $1.025 billion in cash for the assets.
  • On June 25, 2012, Dow Jones reported that according to The Sunday Times, an arm of Gazprom OAO has lodged a bid for BP Plc's $25 billion stake in its venture in the country.
  • On June 24, 2012, Reuters reported that oil workers in Norway went on strike from June 24, 2012, impacting Statoil ASA's and BP Plc's fields, shutting down oil and gas production at two fields offshore Norway after negotiations between unions and the industry association broke down during the night.
  • On June 22, 2012, Reuters reported that NK Rosneft' OAO has been in talks with Exxon Mobil Corp over the possibility of teaming up with the American company to tap Iraq's huge West Qurna-1 oilfield, Kommersant daily reported.
  • On June 22, 2012, Business Standard reported that Reliance Industries Ltd and its partners BP plc and Niko Resources Ltd. plan to spend $4 billion (INR22,000 crore) to develop satellite gas fields off India's east coast.
  • On June 21, 2012, Reuters reported that Exxon Mobil Corp will reconfigure its Fawley refinery, permanently decommissioning one crude distillation unit. The reconfiguration includes the decommissioning of one of Fawley's three 'pipestills' -installations more commonly known as distillation towers, in which crude oil is boiled to separate it into its component parts.
  • On June 20, 2012, Reuters reported that oil workers in Norway resume wage talks on June 22, 2012, threatening to go on strike within days, at Statoil ASA and BP Plc's fields, if firms fail to improve their pay offer and tackle a sensitive pension issue.
  • On June 5, 2012, Reuters reported that Gazprom OAO has no plans to buy BP Plc's stake in TNK-BP Holding OAO as of now, a company executive said.
  • On June 5, 2012, Reuters reported that Oil & Natural Gas Corporation Limited, is considering bidding for part of ConocoPhillips, Canadian oil sands holdings worth around $5 billion, a source with direct knowledge of the situation told Reuters on Tuesday.
  • On June 1, 2012, Reuters reported that BP Plc put its half-share of its huge Russian joint venture up for sale on Friday. A sale of its half stake in TNK-BP could raise around $30 billion for BP BP.L, which would help to fund the ongoing cost of cleaning up the 2010 Gulf of Mexico oil spill and allow it to invest in higher growth deals.
  • On June 1, 2012, Reuters reported that Exxon Mobil Corp, plans to build a multi-billion dollar chemical plant in Texas to take advantage of cheap North American shale gas, according to a U.S. environmental filing seen by Reuters.
  • On May 3, 2012, EOG Resources, Inc. announced that it has declared a dividend of $0.17 per share on EOG's Common Stock, payable July 31, 2012, to stockholders of record as of July 17, 2012.
  • On May 3, 2012, Southwestern Energy Company announced that it expects that its production for fiscal 2012 should range between approximately 560 Bcfe and 570 Bcfe.
  • On May 1, 2012, ConocoPhillips reported in its Form 8-K that in connection with the Distribution, Mr. Harold W. McGraw III and Ms. Victoria J. Tschinkel resigned as Directors of ConocoPhillips.

Technical Overview


The stock has a market capitalization of $34.43B and is currently trading at $68.91 with a 52 week range of $56.42 - $88.70. The stock's year-to-date performance has been -9.50%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Anadarko Petroleum Reports Q2 Earnings On July 31