Anadarko Petroleum’s moving averages
Anadarko Petroleum (APC) crossed over its 50-day moving average several times in 2015, albeit for short durations. It crossed over its 50-day moving average twice in the first half of the year. It also crossed over its 200-day moving average, a strong upside resistance, during 1H15.
Since May, however, APC has fallen rapidly. It fell below its 50-day moving average for an extended period. APC again broke above its 50-day moving average in October 2015, but again wasn’t able to sustain those levels for long. On January 6, 2016, Anadarko was trading ~24% below its 50-day moving average.
On January 6, 2016, APC was trading ~40% below its 200-day moving average.
APC’s stock movements
As crude oil prices rapidly started falling in 3Q15, so did Anadarko’s stock. Crude oil prices have fallen to their lowest levels since February 2009, falling below $40 per barrel. As of January 6, 2016, APC’s stock has fallen 42%, year-over-year.
A quick earnings review of APC
Anadarko Petroleum reported a 3Q15 adjusted net loss of $358 million. This compares to its adjusted net income of $600 million in 3Q14.
Many upstream companies have been hit by weak crude and natural gas prices in 2015. In 3Q15, Chesapeake Energy (CHK) recorded an adjusted net loss of $291 million, Marathon Oil (MRO) reported an adjusted net loss of $138 million, and Cabot Oil and Gas (COG) reported an adjusted net loss of $2.2 million. These companies combined make up ~4% of the Vanguard Energy ETF (VDE).
For a detailed overview of Marathon Oil, you can read Marathon Oil Is Falling: How Will It Battle Low Energy Prices?
Next, we’ll take a look at Anadarko Petroleum’s key management objectives.