Anadarko Petroleum Earnings: Back in the Black

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 Corporation Earnings Cheat Sheet

Results: Reported a profit of $121 million (24 cents per diluted share) in the quarter. The oil-US export and production had a net loss of $3.05 billion or a loss of $6.12 per share in the year-earlier quarter.

Revenue: Rose 4.2% to $3.33 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Anadarko Petroleum Corporation reported adjusted net income of 84 cents per share. By that measure, the company beat the mean estimate of 76 cents per share. It fell short of the average revenue estimate of $3.4 billion.

Quoting Management: “Anadarko is delivering another year of strong operational results and continued cost reductions, and with this momentum, we are pleased to increase our full-year sales-volumes guidance to a new range of 265 to 267 million BOE with no corresponding increase in capital spending,” Anadarko President and CEO Al Walker said. “During the quarter, we delivered record liquids volumes of 322,000 barrels per day and safely reduced controllable costs on a per-unit basis in every category relative to the third quarter of last year. The significant cash generation year-to-date also enabled us to strengthen the balance sheet by reducing borrowings under our revolving credit facility by $1.5 billion, while maintaining approximately $2.5 billion of cash on hand at the end of the third quarter.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 9 cents in the first quarter, and by 25 cents in the fourth quarter of the last fiscal year.

The company reported a profit last quarter, following a quarter of being in the red. In the first quarter, the company booked a net loss of $2.16 billion, or a loss of $4.28 per share.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 89 cents per share, an increase from 85 cents sixty days ago. The average estimate for the fiscal year has seen a bump from $3.42 per share sixty days ago to $3.51.

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

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