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Anadarko’s 3Q16 Earnings and Revenue Were Disappointing

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Anadarko’s 3Q16 revenue

Anadarko Petroleum (APC) reported its 3Q16 earnings on October 31, 2016, after the market closed. Anadarko’s 3Q16 revenue was ~$1.9 billion—compared to an estimate of $2.2 billion. The revenue was ~$1.7 billion in 3Q15 and $1.9 billion in 2Q16.

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Anadarko’s 3Q16 earnings

Anadarko Petroleum reported an adjusted net loss of $459 million in 3Q16. The adjusted net loss in the same period in 2015 was $358 million. In 2Q16, Anadarko Petroleum reported an adjusted net loss of $304 million.

The company reported adjusted EPS (earnings per share) of -$0.89. Wall Street analysts’ consensus EPS estimate was -$0.59. As you can see in the above graph, Anadarko’s earnings and revenue missed estimates.

Peer comparison

Hess (HES) reported EPS of -$1.12 in 3Q16. Apache (APA) and Continental Resources (CLR) haven’t announced their 3Q16 earnings yet. Analysts expect the EPS for these companies to come in at about -$0.15 and -$0.14, respectively. Keep checking in with Market Realist for earnings coverage on these companies.

Key 3Q16 highlights

Anadarko Petroleum’s 3Q16 earnings release noted that the company closed asset monetizations worth ~$3 billion year-to-date. One of Anadarko Petroleum’s key management objectives is to maintain the strength and flexibility of its balance sheet. The key to this is the company’s asset monetization program. The asset monetization target for 2016 is $4 billion.

Another key highlight in 3Q16 was the announcement of Anadarko Petroleum’s $2 billion acquisition. On September 12, 2016, Anadarko Petroleum announced that it agreed to acquire Freeport-McMoRan’s (FCX) Gulf of Mexico assets for $2 billion.

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