It has been about a month since the last earnings report for Anadarko Petroleum Corporation (NYSE:APC) . Shares have lost about 3.4% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Anadarko Q4 Loss Wider than Estimates, Sales Beat
Anadarko reported fourth-quarter 2016 adjusted loss of $0.50 per share, wider than the Zacks Consensus Estimate of a loss of $0.48. Reported loss was, however, narrower than the year-ago quarter level of $0.57.
On a GAAP basis, Anadarko Petroleum’s loss amounted to $0.94 per share in the fourth quarter of 2016, significantly narrower than the prior-year GAAP loss of $2.45.
The difference between the GAAP and adjusted figures was due to gain of $0.35 on derivatives, a gain of $0.03 on environmental reserves, loss of $0.28 on divestiture, impairment losses of $0.39, restructuring charges of $0.03, early termination charges of $0.06, loss of $0.04 on early extinguishment of debt and a charge of $0.02 for uncertain tax positions.
Total Revenue
In the reported quarter, Anadarko Petroleum’s revenues of $2,387 million topped the Zacks Consensus Estimate of $2,237 million by 6.7%.Revenues were also up 16.3% year over year.
Full-year revenues came in at $7,869 million, down 9.5% from $8,698 million. However, yearly revenues topped the Zacks Consensus Estimate of $7,760 million by 1.4%.
Operational Highlights
In the reported quarter, Anadarko Petroleum's average daily sales volume dipped 0.6% to 774,000 barrels of oil equivalent per day (BOE/d).
Quarterly sales volume of natural gas was 1,881 million cubic feet per day (MMcf/d), down 9% from the year-ago quarter level of 2,068 MMcf/d. Crude oil and condensate, and NGL sales volumes were 336 thousand barrels per day (MBbls/d) (up 6.3%) and 124 MBbls/d (up 5.1%), respectively.
Anadarko Petroleum’s total costs and expenses declined 28.6% year over year to $2,997 million primarily due lower operating and transportation expenses, and impairments.
Interest expenses amounted to $233 million, up nearly 11.5% from $209 million incurred a year ago.
Financial Condition
Anadarko Petroleum had cash and cash equivalents of $3,184 million as of Dec 31, 2016, up substantially from $939 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $15,281 million, down from $15,636 as of Dec 31, 2015.
Anadarko Petroleum's net cash from operating activities during the quarter was $1,123 million, up from $257 million in the prior-year period.
In the reported quarter, the company’s capital expenditure was $993 million, down from $1,313 million in the year-ago quarter.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two downward revisions for the current quarter compared to one upward.
VGM Scores
At this time, Anadarko's stock has an average Growth Score of 'C', though it is lagging a bit on the momentum front with an 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
Anadarko Petroleum Corporation (APC): Free Stock Analysis Report
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