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Analyst sees 2Q offsetting Anadarko 1Q production

NEW YORK (AP) -- Anadarko Petroleum's better-than-expected production in the first quarter is likely to be offset by an anticipated drop in the oil and gas company's second-quarter production, an analyst said Tuesday.

On Monday Anadarko reported adjusted earnings of $1.08 per share on revenue of $3.89 billion. Analysts polled by FactSet predicted earnings of 94 cents per share on revenue of $3.47 billion.

The company said that its performance during the quarter led it to raise the high end of its 2013 sales-volumes forecast to 279 million to 287 million barrels of oil equivalent. The previous guidance was for 279 million to 285 million BOE.

But Anadarko also predicted second-quarter production of 67 million to 69 million BOE, which would be a drop from first-quarter production of 71 million BOE.

Analyst Amir Arif of Stifel Nicolaus said in a client note that oil and liquefied natural gas volumes are expected to fall 10 percent and 14 percent, respectively, from the first quarter. Arif said that is due to shut-ins related to the startup of the Brasada cryogenic plant in the Eagle Ford Shale in Texas and the timing of West Africa offshore production.

Arif lowered his second-quarter earnings estimate to $1 per share from $1.07 per share. The analysts' consensus forecast was 94 cents per share, according to FactSet.

He reaffirmed a "Buy" rating and $95 price target for Anadarko.

Anadarko Petroleum Corp. shares fell 40 cents to $87.22 in afternoon trading.