Anadarko Net Income Climbs on Oil Prices, Algeria Settlement

Anadarko Petroleum Corp. (APC), the second-largest U.S. independent oil and natural-gas producer by market value, said first-quarter profit rose on higher crude prices and a $1.8 billion gain from an Algerian tax settlement.

Net income climbed to $2.16 billion, or $4.28 a share, from $216 million, or 43 cents, a year earlier, The Woodlands, Texas- based company said in a statement today. Excluding the Algerian tax settlement and other one-time items, per-share profit was nine cents more than the 83-cent average of 30 analysts’ estimates compiled by Bloomberg.

The company announced on March 9 it had reached a tax settlement with Sonatrach, Algeria’s state-owned oil company, that would increase revenue by $1.8 billion over 12 months and boost Anadarko’s share of crude from Algerian wells. The company will receive $1 billion in cash this year and the remainder during the first half of next year, according to today’s statement.

Sales increased 6.2 percent to $3.45 billion. First-quarter sales volume was the equivalent of 64 million barrels of oil, beating a quarterly forecast given in March of 61 million to 63 million barrels, John Christiansen, a spokesman for Anadarko, said in a telephone interview.

Brent crude futures, a benchmark global oil price, gained 12 percent from a year earlier to average $118.45 a barrel in the first quarter. Gas futures traded in New York averaged $2.503 per million British thermal units in the quarter, a decline of 40 percent from a year earlier.

Higher Sales Estimates

Anadarko boosted its sales-volume guidance for 2012 to a range of 258 million to 262 million barrels of oil equivalent, helped by an increase in volumes from amended contract terms in Algeria, according to the statement. The previous forecast was for a range of 256 million to 260 million barrels.

Today’s earnings report was issued after the close of regular trading in New York. Anadarko rose 1.1 percent to $74 at 5:47 p.m. in New York.

Independent oil companies focus on finding and producing crude and gas and don’t own any refineries. Apache Corp. (APA) is the largest U.S. independent producer.

(Anadarko will hold an earnings conference call tomorrow at 10 a.m. New York time. To listen, go to http://www.anadarko.com.)

To contact the reporters on this story: Edward Klump in Houston at eklump@bloomberg.net; Mark Chediak in San Francisco at mchediak@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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