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Anadarko (APC) Tops Q4 Earnings Estimates, Issues Guidance

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Anadarko Petroleum Corporation reported fourth-quarter 2017 earnings of 18 cents per share, beating the Zacks Consensus Estimate of 3 cents by a whopping 500%. In the year-ago quarter, the company had incurred a loss of 50 cents.

On a GAAP basis, Anadarko Petroleum’s earnings were $1.80 per share, rebounding from the prior-year quarter loss of 94 cents.

Anadarko Petroleum Corporation Price, Consensus and EPS Surprise
 

Anadarko Petroleum Corporation Price, Consensus and EPS Surprise

Anadarko Petroleum Corporation price-consensus-eps-surprise-chart | Anadarko Petroleum Corporation Quote

Total Revenues

In the reported quarter, Anadarko Petroleum’s revenues of $2,929 million surpassed the Zacks Consensus Estimate of $2,713 million by 7.9%. Revenues were also up 22.7% year over year.

The year-over-year improvement was due to higher oil sales revenues, which increased 30.6%.

Operational Highlights

In 2017, Anadarko Petroleum organically added 244 million barrels of oil equivalent (BOE) of proved reserves before the effects of price revisions.

In the quarter, the company’s average daily sales volume was 637,000 BOE per day (BOE/d). U.S. Onshore assets delivered sales volumes of 391,000 BOE/d on a divestiture-adjusted basis, an increase of 9% from the prior-year quarter.

The company’s total costs and expenses in fourth quarter dropped 13.5% year over year to $2,591 million, primarily due to lower exploration and Oil and gas transportation expenses.

Interest expenses came in at $252 million, increasing 8.1% from $233 million a year ago.

Shareholder Friendly Initiatives

Anadarko Petroleum raised its quarterly dividend to 25 cents from 5 cents, reflecting an increase of 400%.

The board of directors authorized a $500-million increase to the company’s previously announced $2.5 billion share repurchase program, bringing the total program to $3.0 billion. As of Feb 5, 2018, the company bought back 30 million shares using $1.6 billion from the repurchase program.

Financial Condition

Anadarko Petroleum had cash and cash equivalents of $4,553 million as of Dec 31, 2017, up substantially from $3,184 million as of Dec 31, 2016.

Long-term debt as of Dec 31, 2017 were $15,547 million, reflecting an increase from $15,281 million as of Dec 31, 2016.

Its net cash flow from operating activities during the quarter was $1,390 million compared with $1,123 million generated in the year-ago quarter.

Guidance

Anadarko Petroleum expects average daily oil sales volume in the range of 370,000-390,000 BOE for 2018.

The company projects its total 2018 sales volume in the range of 238-248 million BOE.

It expects 2018 capital expenditure in the range of $4,100-$4,500 million.

Upcoming Releases

Apache Corporation (APA - Free Report) is expected to report fourth-quarter earnings on Feb 22, 2018. The Zacks Consensus Estimate is pegged at 21 cents.

Devon Energy Corporation (DVN - Free Report) is expected to report fourth-quarter earnings on Feb 20, 2018. The Zacks Consensus Estimate is pegged at 62 cents.

Range Resource Corporation (RRC - Free Report) is expected to report fourth-quarter earnings on Feb 27, 2018. The Zacks Consensus Estimate is pegged at 14 cents.

Zacks Rank

Anadarko Petroleum has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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