It has been about a month since the last earnings report for Anadarko Petroleum Corporation . Shares have lost about 2.7% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Anadarko's Q1 Loss Wider than Estimates, Sales Beat
Anadarko Petroleum Corporation reported first-quarter 2017 adjusted loss of $0.60 per share, wider than the Zacks Consensus Estimate of a loss of $0.26. Reported loss was, however, narrower than the year-ago quarter loss of $1.12.
On a GAAP basis, Anadarko Petroleum’s loss of $0.58 per share in the first quarter of 2017 was significantly narrower than the prior-year loss of $2.03.
The difference between the GAAP and adjusted figures was due to a gain of $0.18 in derivatives and $0.92 on divestiture. The gains were partially offset by a loss of $1.04 on impairments and a charge of $0.04 for uncertain tax positions.
Total Revenue
In the reported quarter, Anadarko Petroleum’s revenues of $3,767 million surpassed the Zacks Consensus Estimate of $2,658 million by 41.7%. Revenues were also up 125% year over year.
Operational Highlights
In the reported quarter, Anadarko Petroleum's average daily sales volume declined 3.9% to 795,000 barrels of oil equivalent per day (BOE/d).
Quarterly sales volume of natural gas was 1,859 million cubic feet per day (MMcf/d), reflecting a decline of 19.3% from the year-ago quarter level of 2,303 MMcf/d. Crude oil and condensate. NGL sales volumes were 367 thousand barrels per day (MBbls/d) (up 16.5%) and 118 MBbls/d (down 7.8%), respectively.
Anadarko Petroleum’s total costs and expenses increased 52.7% year over year to $3,877 million, primarily due to higher exploration charges.
Interest expenses came in at $223 million, increasing nearly 1.37% from $220 million incurred a year ago.
Financial Condition
Anadarko Petroleum had cash and cash equivalents of $ 5,831 million as of Mar 31, 2017, up substantially from $ 3,184 million as of Dec 31, 2016.
Long-term debt as of Mar 31, 2017 was $15,284 million, reflecting a marginal increase from $15,281 million as of Dec 31, 2016.
Anadarko Petroleum's net cash flow from operating activities during the quarter was $1,123 million against $137 million cash used in operating activities for the quarter ended Mar 31, 2016.
In the reported quarter, the company’s capital expenditure was $1,255 million, decreasing from $896 million in the year-ago quarter.
Guidance
Anadarko expects average daily sales volume in the range of 626,000–648,000 BOE/d for second-quarter 2017 and 644,000–655,000 BOE/d for 2017.
The company expects capital expenditure to be in the range of $1,050–$1,250 million in the second quarter and $4,500–$4,700 million in 2017.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been five revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 30.4% due to these changes.
VGM Scores
At this time, Anadarko's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Anadarko (APC) Down 2.7% Since the Last Earnings Report?
It has been about a month since the last earnings report for Anadarko Petroleum Corporation . Shares have lost about 2.7% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Anadarko's Q1 Loss Wider than Estimates, Sales Beat
Anadarko Petroleum Corporation reported first-quarter 2017 adjusted loss of $0.60 per share, wider than the Zacks Consensus Estimate of a loss of $0.26. Reported loss was, however, narrower than the year-ago quarter loss of $1.12.
On a GAAP basis, Anadarko Petroleum’s loss of $0.58 per share in the first quarter of 2017 was significantly narrower than the prior-year loss of $2.03.
The difference between the GAAP and adjusted figures was due to a gain of $0.18 in derivatives and $0.92 on divestiture. The gains were partially offset by a loss of $1.04 on impairments and a charge of $0.04 for uncertain tax positions.
Total Revenue
In the reported quarter, Anadarko Petroleum’s revenues of $3,767 million surpassed the Zacks Consensus Estimate of $2,658 million by 41.7%. Revenues were also up 125% year over year.
Operational Highlights
In the reported quarter, Anadarko Petroleum's average daily sales volume declined 3.9% to 795,000 barrels of oil equivalent per day (BOE/d).
Quarterly sales volume of natural gas was 1,859 million cubic feet per day (MMcf/d), reflecting a decline of 19.3% from the year-ago quarter level of 2,303 MMcf/d. Crude oil and condensate. NGL sales volumes were 367 thousand barrels per day (MBbls/d) (up 16.5%) and 118 MBbls/d (down 7.8%), respectively.
Anadarko Petroleum’s total costs and expenses increased 52.7% year over year to $3,877 million, primarily due to higher exploration charges.
Interest expenses came in at $223 million, increasing nearly 1.37% from $220 million incurred a year ago.
Financial Condition
Anadarko Petroleum had cash and cash equivalents of $ 5,831 million as of Mar 31, 2017, up substantially from $ 3,184 million as of Dec 31, 2016.
Long-term debt as of Mar 31, 2017 was $15,284 million, reflecting a marginal increase from $15,281 million as of Dec 31, 2016.
Anadarko Petroleum's net cash flow from operating activities during the quarter was $1,123 million against $137 million cash used in operating activities for the quarter ended Mar 31, 2016.
In the reported quarter, the company’s capital expenditure was $1,255 million, decreasing from $896 million in the year-ago quarter.
Guidance
Anadarko expects average daily sales volume in the range of 626,000–648,000 BOE/d for second-quarter 2017 and 644,000–655,000 BOE/d for 2017.
The company expects capital expenditure to be in the range of $1,050–$1,250 million in the second quarter and $4,500–$4,700 million in 2017.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been five revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 30.4% due to these changes.
Anadarko Petroleum Corporation Price and Consensus
Anadarko Petroleum Corporation Price and Consensus | Anadarko Petroleum Corporation Quote
VGM Scores
At this time, Anadarko's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.