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Anadarko (APC) Q2 Earnings Miss, Revenues Beat Estimates

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Anadarko Petroleum Corporation reported second-quarter 2018 earnings of 54 cents per share, missing the Zacks Consensus Estimate of 60 cents by 10%. In the year-ago quarter, the company had however, incurred a loss of 77 cents.

On a GAAP basis, Anadarko Petroleum’s earnings were 5 cents per share, rebounding from the prior-year quarter’s loss of 76 cents.

Total Revenues

In the reported quarter, Anadarko Petroleum’s revenues of $3,291 million surpassed the Zacks Consensus Estimate of $2,973 million by 10.7%. Also, the top line was up 21.2% year over year. The strong performance was primarily driven by increased U.S. onshore oil volumes.

Anadarko Petroleum Corporation Price, Consensus and EPS Surprise

Operational Highlights

In the quarter under review, the company’s average daily sales volume was 637,000 barrels of oil equivalent per day (BOE/d). U.S. Onshore assets delivered sales volumes of 417,000 BOE/d on a divestiture-adjusted basis, an increase of 18.5% from the prior-year quarter.

The company’s total costs and expenses in the second quarter declined 11.2% year over year to $2,472 million, primarily due to lower exploration and Oil and gas transportation expenses.

Interest expenses came in at $237 million, increasing 3.5% from $229 million in the year-ago quarter.

Financial Condition

Anadarko Petroleum had cash and cash equivalents of $2,321 million as of Jun 30, 2018, down substantially from $4,553 million as of Dec 31, 2017.

Long-term debt as of Jun 30, 2018 was $15,355 million, reflecting a reduction from $15,547 million as of Dec 31, 2017.

The company’s net cash flow from operating activities during the quarter under consideration was $1,225 million compared with $857 million recorded in the prior-year period.

Guidance

Anadarko Petroleum expects average daily oil sales volume in the range of 652,000-707,000 BOE/d for third-quarter 2018.

It expects capital expenditure in the band of $1,050-$1,250 million for third-quarter 2018.

Anadarko Petroleum anticipates average daily oil sales volume in the range of 658,000-685,000 BOE/d for 2018.

It estimates 2018 capital expenditure between $4,500 million and $4,800 million.

Zacks Rank

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

Upcoming Releases

Northern Oil and Gas, Inc. (NOG - Free Report) is expected to report second-quarter 2018 earnings on Aug 14. It has an Earnings ESP of +2.44% and a Zacks Rank #1.

Penn Virginia Corporation has an Earnings ESP of +6.72% and a Zacks Rank of 1. It is slated to report second-quarter 2018 earnings on Aug 7.

Denbury Resources Inc. has an Earnings ESP of +27.78% and a Zacks Rank #2. It is scheduled to report second-quarter 2018 earnings on Aug 7.

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