Anadarko Petroleum’s (APC) profits surged but that wasn’t good enough for investors.
Benjamin Rasmussen MarketWatch has the details:
Overall, Anadarko posted a profit of $182 million, or 36 cents a share, up from a profit of $121 million, or 24 cents a share, a year ago. The latest quarter included $389 million in impairments and other items on an after-tax basis that reduced income by 77 cents a share, while the prior-year period included $301 million in derivative losses and other items, contributing 60 cents to per-share earnings.
Revenue rose 16% to $3.85 billion.
Analysts polled by Thomson Reuters were expecting per-share earnings of $1.16 a share on revenue of $3.82 billion.
Sure, Anadarko’s shares are falling, but RBC Capital Market’s Scott Hanold is not worried. He writes:
Production guidance volumes remained unchanged at 281–284 MMboe, which accounts for the reduced Wattenberg production related to flooding. However, expected oil volumes dropped 3.7–3.8 MMboe, which was offset by natural gas and NGLs. The reductions occurred in every region and were caused by infrastructure, downtime (Jubilee), and delayed ramp and reduced liftings (Algeria)…
Guidance volumes stayed mostly unchanged but the production mix was more gassy, which could weigh on APC shares a bit. However, we think many of the “issues” are temporary and should be resolved by early 2014.
Shares of Anadarko have dropped 2.8% to $93.22 at 11:30 a.m. today, a bigger loss than those experienced by others in the sector. Chevron (CVX) has fallen 0.2% to $117.90, for instance, Devon Energy (DVN) has declined 0.7% to $63.98 and ConocoPhillips (COP) has 0.8% to $72.76.
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