Anadarko Profit Surpasses Estimates as Output Beats Forecast

Anadarko Petroleum Corp. (APC), the oil explorer that’s expanding production in Colorado and Texas, reported first-quarter profit that surpassed analysts’ estimates as the company raised the top end of its 2013 forecast.

Net income fell to $460 million, or 91 cents a share, from $2.16 billion, or $4.28, a year earlier, The Woodlands, Texas- based company said yesterday in a statement. The company had a $1.8 billion tax-settlement gain a year earlier. Profit in the recent quarter, excluding a loss on derivatives and other one- time items, was $1.08 a share, topping the 95-cent average of 28 estimates compiled by Bloomberg. Revenue increased 13 percent to $3.89 billion.

Sales volumes climbed 11 percent in the first quarter to the equivalent of 71 million barrels of oil, which beat a Feb. 20 forecast of as much as 69 million barrels. Anadarko also boosted its full-year forecast to a range of 279 million to 287 million barrels of oil equivalent, from as much as 285 million previously.

“It’s a positive report,” James Sullivan, a New York- based analyst at Alembic Global Advisors who has an overweight, or buy, rating on Anadarko shares and owns none, said by phone yesterday. He called it an “on track” quarter as the company moves ahead with major projects.

Rising Production

Anadarko has seen rising oil output from projects such as the Wattenberg field in Colorado and Texas’ Eagle Ford Shale, as well as gas output from the Marcellus Shale in Pennsylvania. Anadarko’s exploration includes work in the Gulf of Mexico and off the coast of Africa. It is the U.S. oil and natural gas producer with the biggest market capitalization after ConocoPhillips (COP) among companies that don’t own refineries or a chemical unit.

The company’s output translated into record sales volumes of 793,000 barrels of oil equivalent a day in the first quarter. Anadarko’s Wattenberg field averaged more than 113,000 barrels a day. In Algeria, Anadarko and its partners began producing oil from the El Merk project. Anadarko said it also has interests in six deep-water wells currently being drilled around the world.

Brent crude futures, a global benchmark, fell 4.9 percent from a year earlier to average $112.64 a barrel in the first quarter. Gas futures traded in New York averaged $3.48 per million British thermal units in the quarter, a 39 percent increase from a year earlier.

The earnings report was issued after the close of regular trading on U.S. markets yesterday. Anadarko climbed 1.2 percent to $87.62 at the close yesterday in New York.

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

To contact the reporter on this story: Edward Klump in Houston at eklump@bloomberg.net

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

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