Anadarko Reports Second-Quarter Profit as Output Climbs

Anadarko Petroleum Corp. (APC), the oil explorer that’s expanding production in Texas and Colorado, reported a second-quarter profit that exceeded analysts’ estimates as output climbed.

Net income was $929 million, or $1.83 a share, compared with a net loss of $89 million, or 18 cents, a year earlier, The Woodlands, Texas-based company said in a statement yesterday. Excluding one-time items such as a gain from energy contracts, per-share earnings of $1.05 exceeded the 91-cent average of 30 analysts’ estimates compiled by Bloomberg.

Daily sales volumes climbed 1.1 percent in the second quarter from a year earlier to the equivalent of about 750,000 barrels of oil, compared with a May forecast range of 736,000 to 758,000 barrels. Anadarko said costs including such items as exploration expenses declined 33 percent.

“All in all, it was very strong,” Fadel Gheit, an analyst with Oppenheimer & Co. in New York who has an outperform rating on Anadarko shares, said in a phone interview.

Anadarko said output for all of 2013 will be 281 million to 287 million barrels of oil equivalent, boosting its minimum production from 279 million barrels. The company increased its 2013 daily forecast for natural gas output as it lowered its expected crude oil projection to as much as 260,000 barrels a day from as much as 268,000 a day. The company cited mechanical issues as delaying a well in the Gulf of Mexico, according to an online operations report.

Lower 48

Anadarko has the second-largest market value, behind ConocoPhillips (COP), among U.S. oil and gas producers that don’t own refineries or a chemical unit. Anadarko’s oil production has been rising from such projects as Colorado’s Wattenberg field and the Eagle Ford Shale in Texas.

Oil sales volumes from the lower-48 states rose about 26 percent from a year earlier to average 97,000 barrels a day in the second quarter, according to the operations report. The company also completed its first two Wolfcamp shale wells in Texas during the quarter. Anadarko’s gas volumes from the Marcellus Shale continued to climb, rising 63 percent from a year earlier.

The company, along with partners, is exploring in offshore basins and had five deep-water finds in the second quarter. That included encountering oil at the Raptor and Yucatan prospects in the Gulf and gas at Espadarte offshore Mozambique, Anadarko said. The Calao exploration well off Ivory Coast was determined to be non-commercial, the company said in its operations report.

Revenue rose 8.5 percent from a year earlier to $3.5 billion in the second quarter.

Brent crude futures, a global benchmark, fell 5 percent from a year earlier to average $103.35 a barrel in the second quarter. Gas futures traded in New York averaged $4.018 per million British thermal units in the quarter, a 71 percent increase from a year earlier.

The earnings report was issued after the close of regular trading on U.S. markets yesterday. Anadarko climbed 0.2 percent to $88.65 at the close yesterday in New York.

(Anadarko has scheduled an earnings conference call at 9 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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