Anadarko Reports Second-Quarter Profit as Output Climbs
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.
“They are doing what they said they were going to do,” Andrew Coleman, an analyst with Raymond James & Associates Inc. in Houston, said in a phone interview today. Coleman has an outperform, or buy, rating on Anadarko shares and doesn’t own any.
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.
Anadarko rose 0.2 percent to $88.80 at the close in New York.
Anadarko has the largest market value after 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.
Anadarko is considering ways to return cash to shareholders, Chief Financial Officer Bob Gwin said on a conference call with analysts and investors today. Anadarko has an annual dividend of 36 cents a share, translating into a yield of about 0.4 percent.
“We believe over time we will increase the yield and the payout on our dividend,” Chairman and Chief Executive Officer Al Walker said on the call.
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.
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