Anadarko's (APC) Q1 Loss Wider Than Estimates, Sales Beat

Anadarko Petroleum Corporation (NYSE:APC) reported first-quarter 2017 adjusted loss of 60 cents per share, wider than the Zacks Consensus Estimate of a loss of 26 cents. Reported loss was, however, narrower than the year-ago quarter loss of $1.12.

On a GAAP basis, Anadarko Petroleum’s loss of 58 cents per share in the first quarter of 2017 was significantly narrower than the prior-year loss of $2.03.

The difference between the GAAP and adjusted figures was due to a gain of 18 cents in derivatives and 92 cents on divestiture. The gains were partially offset by a loss of $1.04 on impairments and a charge of 4 cents for uncertain tax positions.

Total Revenue

In the reported quarter, Anadarko Petroleum’s revenues of $3,767 million surpassed the Zacks Consensus Estimate of $2,658 million by 41.7%. Revenues were also up 125% year over year.

Operational Highlights

In the reported quarter, Anadarko Petroleum's average daily sales volume declined 3.9% to 795,000 barrels of oil equivalent per day (BOE/d).

Quarterly sales volume of natural gas was 1,859 million cubic feet per day (MMcf/d), reflecting a decline of 19.3% from the year-ago quarter level of 2,303 MMcf/d. Crude oil and condensate. NGL sales volumes were 367 thousand barrels per day (MBbls/d) (up 16.5%) and 118 MBbls/d (down 7.8%), respectively.

Anadarko Petroleum’s total costs and expenses increased 52.7% year over year to $3,877 million, primarily due to higher exploration charges.

Interest expenses came in at $223 million, increasing nearly 1.37% from $220 million incurred a year ago.

Financial Condition

Anadarko Petroleum had cash and cash equivalents of $ 5,831 million as of Mar 31, 2017, up substantially from $ 3,184 million as of Dec 31, 2016.

Long-term debt as of Mar 31, 2017 was $15,284 million, reflecting a marginal increase from $15,281 million as of Dec 31, 2016.

Anadarko Petroleum's net cash flow from operating activities during the quarter was $1,123 million against $137 million cash used in operating activities for the quarter ended Mar 31, 2016.

In the reported quarter, the company’s capital expenditure was $1,255 million, decreasing from $896 million in the year-ago quarter.

Guidance

Anadarko expects average daily sales volume in the range of 626,000–648,000 BOE/d for second-quarter 2017 and 644,000–655,000 BOE/d for 2017.

The company expects capital expenditure to be in the range of $1,050–$1,250 million in the second quarter and $4,500–$4,700 million in 2017.

Peer Releases

Noble Energy, Inc. (NYSE:NBL) reported adjusted loss of 5 cents per share in the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 13 cents.

QEP Resources, Inc. (NYSE:QEP) reported loss per share – excluding special items – of 14 cents, narrower than the Zacks Consensus Estimate of a loss of 21 cents.

Devon Energy Corporation (NYSE:DVN) reported earnings of 41 cents beating the Zacks Consensus Estimate of 40 cents.

Zacks Rank

Anadarko Petroleum has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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