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Anadarko Petroleum’s 3Q17 Earnings Miss Estimates, Again

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Anadarko Petroleum’s 3Q17 Earnings Miss Estimates, Again PART 1 OF 5

Anadarko Petroleum’s 3Q17 Earnings Miss Estimates, Again

Anadarko’s 3Q17 revenue

Anadarko Petroleum (APC) released its 3Q17 earnings on October 31, 2017, after the markets closed. It reported revenue of ~$2.49 billion compared to analysts’ estimate of ~$2.38 billion. In 3Q16, it reported revenue of ~$1.9 billion, and in 2Q17, it was ~$2.7 billion.

Anadarko Petroleum’s 3Q17 Earnings Miss Estimates, Again

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As you can see in the above chart, APC’s 3Q17 revenue was slightly higher than the estimates. They were higher on a year-over-year basis but lower on a sequential basis.

Higher year-over-year revenues were supported by higher realized energy prices. Anadarko’s average crude oil price realization in 3Q17 was $48.31 per barrel compared to $42.49 per barrel in 3Q16. Its natural gas price realization in 3Q17 was $2.69 per Mcf (thousand cubic feet) compared to $2.36 per Mcf in 3Q16. Its average natural gas liquids price realization in 3Q17 was $31.15 per barrel compared to $19.13 per barrel in 3Q16.

On a sequential basis, lower realized natural gas prices caused 3Q17 revenue to be lower than 2Q17. Natural gas sales in 3Q17 were $269 million compared to $319 million in 2Q17. Loss on divestitures of $114 million also resulted in lower revenues compared to 2Q17.

Anadarko’s 3Q17 earnings

Anadarko Petroleum reported adjusted EPS (earnings per share) of -$0.77 in 3Q17 compared to estimated EPS of -$0.56. Its EPS a year ago in 3Q16 was -$0.89. In the previous quarter, it was -$0.77.

Unlike its revenue, APC’s 3Q17 EPS came in below analysts’ expectations. As we can see in the above chart, APC’s earnings have consistently been below expectations in the past few quarters.

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