Anadarko’s Loss Can’t Hide Big Production Boost

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Anadarko Petroleum Corp. (APD) reported first quarter 2014 results after the markets closed Monday. The oil and gas producer posted adjusted diluted earnings per share (EPS) of $1.26 on revenues of $5.84 billion. In the first quarter of 2013, Anadarko reported EPS of $1.08 on revenues of $3.89 billion. The Thomson Reuters estimates for the first quarter called for EPS of $1.16 and $3.87 billion in revenue.

Anadarko posted a net loss of $5.30 per share, or $2.67 billion as a result of settlement agreement in the Tronox proceed that decreased net income by $3.31 billion and the sale of a portion of the company’s interest in an offshore lease in Mozambique that provided a $946 million gain.

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The company’s CEO said:

Our operating performance during the first quarter was outstanding, delivering record sales volumes that were above the high end of the guidance. … We are raising the midpoint of our full-year sales-volume guidance by 3.5 million BOE, with only a modest increase in our capital program. We also continue to actively manage our portfolio and evaluate other means to drive shareholder value.

The Tronox settlement was expected and shares are rising in after-hours trading. The big surprise in revenues was due to a 10,000 barrel per barrel of oil equivalent jump in production from the Wattenberg and Eagle Ford shale plays.

Anadarko’s shares closed at $99.49 today and rose about 1.5% in after-hours trading to $101.00 in a 52-week range of $73.60 to $103.50. Thomson Reuters had a consensus analyst price target of around $113.35 before today’s report.

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