Anadarko Petroleum Corp. (APC: Quote), Monday reported a swing to loss in the second quarter, hurt mainly by hefty non-cash impairment charges and derivative losses, as well as lower revenues owing to depressed natural gas and oil prices. Looking ahead, the company raised the midpoint of full-year sales volumes guidance by 3 million barrels of oil equivalent.
Sales volumes in the quarter increased 8 percent from last year to 68 million barrels of oil equivalent (BOE), or 742,000 BOE per day. Volume growth was led mainly by the Wattenberg HZ program in northeast Colorado and Caesar/Tonga in the deepwater Gulf of Mexico.
By product, oil volumes averaged about 241,000 barrels per day, natural gas liquids averaged 77,000 barrels per day and natural gas averaged 2.54 billion cubic feet per day.
As a result of sustained weakness in the natural gas market, average price per Mcf dropped to $2.15 from $4.11 last year. Average crude oil and condensate per barrel price declined to $101.22 from $108.99, and natural gas liquids per barrel slid to $40.41 from $56.21.
The Woodlands, Texas-based Anadarko reported second quarter net loss to common shares of $380 million or $0.76 per share, compared to net income of $544 million or $1.08 per share last year.
Results for the 2012 quarter included a non-cash charge of $978 million related to the impairment of coalbed methane properties due to low natural gas prices, and derivative losses of $225 million.
Excluding items, adjusted earnings for the quarter were $424 million or $0.85 per share, compared to $607 million or $1.21 per share.
On average, 29 analysts polled by Thomson Reuters expected earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $3.22 billion, compared to about $3.68 billion a year ago. Sixteen analysts had a consensus revenue estimate of $3.38 billion.
By product, oil and condensate sales edged down to $2.22 billion from about $2.24 billion a year ago, and natural gas sales slid to $496 million from $870 million.
Anadarko exploration activity during the second quarter gathered steam, extending its pursuit in offshore Mozambique beyond the Prosperidade complex with the discoveries of Golfinho and Atum. The Golfinho/Atum complex is estimated to hold 10 to 30-plus trillion cubic feet of recoverable natural gas resources.
Anadarko has raised the midpoint of full-year sales volumes guidance by 3 million BOE. In April, the company had forecast full-year sales volumes of 258 million to 262 million BOE.
APC closed Monday at $71.81, up 0.56%, on a volume of 3.2 million shares on the NYSE.
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by RTT Staff Writer
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