Anadarko Petroleum Corp. (APC), the global explorer that discovered more than 6 billion barrels of oil and natural gas in the past decade, said first-quarter profit fell as a $5 billion legal settlement tempered profit from higher output.
Anadarko’s net loss was $2.67 billion, or $5.30 a share, from a profit of $460 million, or 91 cents, a year earlier, The Woodlands, Texas-based company said in a statement today on Marketwired. Excluding one-time items, such as a potential $4.02 billion loss related to Tronox, per-share earnings of $1.26 exceeded the $1.15 average of 29 analysts’ estimates compiled by Bloomberg.
Chairman and Chief Executive Officer Al Walker plans to spend as much as $8.5 billion this year on projects from the Gulf of Mexico to New Zealand after Anadarko settled an environmental lawsuit that had dragged on shares. The company has soared 15 percent since agreeing last month to pay the U.S. Justice Department $5.15 billion to clean up pollution left behind by its Kerr-McGee unit, which it acquired in 2006.
Anadarko continues to develop a discovery off the coast of Mozambique that may contain 70 trillion cubic feet of gas, enough to meet annual U.S. residential demand for 14 years. The company’s oil production has been rising in Texas and Colorado.
Brent crude futures, the global benchmark, declined 4.2 percent to average $107.92 a barrel in the January-to-March period, according to data compiled by Bloomberg. U.S. gas prices climbed 35 percent to average $4.712 per million British thermal units during that period.
The earnings report was issued after the close of regular trading in New York. Anadarko fell less than one percent to $99.49 at the close. The shares, which have 33 buy ratings and five holds from analysts, have risen 26 percent this year.
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