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The Woodlands Texas oil and gas development company Andarko Petroleum reported worse than expected second quarter earnings after the close Tuesday. $APC's sales volumes of oil, natural gas and natural gas liquids high end of guidance.

Anadarko Paltform

Earnings 

Anandarko Petroleum Corp (NYSE: $APC) Beat Earnings After Close Monday

$0.54 Missed $0.60 EPS and $3.29 billion Beat $3.08 billion forecast in revenue 

Earnings

Adjusted earnings of $0.54 per share missing analyst consensus of $0.60 but was up from a loss of $0.77 from the same period last year. Revenue was $3.29 billion ahead of analysts' estimates of $3.08 billion. 

Anadarko Petroleum Corp NYSE: $APC

Market Reaction > After-Hours $72.40  -$0.75 (-1.03%)

Highlights

  • Increased U.S. onshore oil volumes by 47 percent on a divestiture-adjusted basis and improved per-barrel margins by almost 50 percent year-over-year
  • Anadarko grew its Delaware Basin production in West Texas by 88 percent from the previous year, averaging a record 62,000 barrels per day during the second quarter.
  • Total sales volumes for the quarter, including crude, natural gas and natural gas liquids, averaged 637,000 barrels of oil equivalent per day, up only slightly from the prior year
  • Expanded West Texas infrastructure with the successful startup of the Reeves Regional Oil Treating Facility (ROTF) during the quarter and commissioning of the North Loving ROTF subsequent to quarter end
  • Achieved significant advancements on the Mozambique LNG project, including new heads of agreements and expected cost reductions, with an anticipated Final Investment Decision (FID) during the first half of 2019
  • Completed $3.0 billion of the share-repurchase program

 

Anadarko Q1 Earnings Recap

EPS of 52 cents beating expected 43 cents on revenue of $3.045 billion.

Anadarko Petroleum Corporation NYSE: $APC

  • Market Reaction >After hours 66.51 −0.0080 (-0.012%)

Highlights

  • Average daily sales volumes fell 19% to 643,00 boe per day, which was at the high end of the company's first-quarter guidance.
  • Achieved record divestiture-adjusted oil production of 367,000 barrels per day
  • Increased the company's oil production mix to 57 percent, while generating its highest per-barrel margins since 2014, when oil prices averaged more than $93 per barrel for WTI
  • Secured substantial long-term oil transportation capacity from the Delaware Basin to both Gulf Coast and U.S. export markets
  • Locked in firm sales out of the basin for about 80 percent of its operated natural gas production
  • Received Mozambique government approval for the Golfinho/Atum Plan of Development for the company's LNG project with Area 1 participants

"Exceptional performance from our asset-management teams in the Delaware and DJ basins and the Deepwater Gulf of Mexico drove record quarterly oil production, matching the company's highest oil output to date," Chairman and CEO Al Walker said in a statement.

Outlook:

  • Average Q2 sales volumes seen at 615,00-640,000 boe per day and full-year volumes at 658,000-685,000 boe per day.
  • Full-year capital investment guidance raised by about $100 million, primarily due to higher-than-expected non-operated plans in the Delaware Basin.
  • Infrastructure buildout in West Texas is on track, with expectations of placing into service our first regional oil treating facility (ROTF) in Reeves County in the second quarter
  • Expected to be followed by an additional ROTF in north Loving County and the first cryogenic train at the Mentone gas processing plant in the third quarter.
  • As we have commented previously, these are key drivers for significant oil growth later this year and next. As the operator for approximately 70 percent of our Delaware Basin leasehold, we have significant size, scale, control and flexibility to be an anchor tenant on several pipeline projects to ensure hydrocarbon-takeaway from the basin and improve wellhead margins. 
  • This durable strategy of providing capital-efficient growth, while generating free cash flow to drive the return of capital through share repurchases, increased dividends and debt retirement will continue to be one of our principal objectives in the years to come."

Share Repurchases

Chairman and CEO Al Walker said in a statement. "Additionally, we expect to complete our $3.0 billion share-repurchase program by mid-year and will consider expanding this program further should free cash flow from the current operating environment continue to increase."

Entered into accelerated share-repurchase agreements (ASRs) to complete the expanded $3.0 billion share-buyback program by the end of the second quarter, nine months from initial board authorization.

About Anadarko

Anadarko Petroleum Corporation is an independent exploration and production company. The Company’s segments include Oil and Gas Exploration & Production; Midstream, and Marketing. The Oil and Gas Exploration & Production segment explores for and produces oil, condensate, natural gas and natural gas liquids (NGLs), and focuses on the development and operation of the Company’s liquefied natural gas (LNG) project in Mozambique.

The company’s asset portfolio includes U.S. onshore resource plays in the Rocky Mountains, the southern United States, the Appalachian basin and Alaska; the deepwater Gulf of Mexico; and in Mozambique, Algeria, Ghana, Brazil, Colombia, Côte d’Ivoire, Kenya, Liberia, New Zealand and other countries.

Source: Anadarko

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