How Will Anadarko Petroleum’s 4Q16 Earnings Fare?



Anadarko Petroleum’s 4Q16 earnings estimates

Anadarko Petroleum’s (APC) 4Q16 loss per share consensus estimate is ~$0.49. APC had announced an adjusted loss per share of $0.57 in 4Q15. The consensus Wall Street estimate in 4Q15 was a loss per share of $0.95. Its 3Q16 loss per share was $0.89, as compared to the estimate of $0.53 loss per share.

As we can see in the image above, APC’s earnings have mostly been negative since 4Q14. In 2016, APC’s quarterly earnings mostly came in better than expected. Investors will have to keep a close watch to see how things pan out going forward.

By comparison, peers Concho Resources (CXO) and Cimarex Energy (XEC) are expected to report earnings per share of -$0.08 and $0.55, respectively, in 4Q16.

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Key 4Q16 highlights

On December 21, 2016, Anadarko Petroleum (APC) announced that it had agreed to sell a portion of its Marcellus natural assets to Alta Marcellus Development, a subsidiary of Alta Resources Development, for ~$1.2 billion.

APC was an aggressive dealmaker last year, divesting and adding assets to strengthen its existing portfolio. That seems to be the company’s focus in 2017 as well, as the company continues to sharpen its focus in the DJ Basin and the Gulf of Mexico. On January 12, 2017, Anadarko Petroleum (APC) announced yet another asset divestiture. The company said that it would be selling its Eagle Ford assets to Sanchez Energy (SN) and Blackstone Group for a total of ~$2.3 billion.


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