Will Anadarko’s 4Q16 Revenue Fail to Meet Estimates Again?



Anadarko Petroleum’s 4Q16 revenue estimate

Anadarko Petroleum (APC) is expected to release its 4Q16 earnings on January 31, 2017. APC’s 4Q16 revenue consensus estimate is $1.8 billion, as compared to its revenue in 4Q15 of ~$2.1 billion and in 3Q16 of ~$1.9 billion.

The above image notes APC’s revenue trends since 3Q14. We can see that not only have Anadarko’s revenues fallen considerably since 2014, they have also frequently come in lower than analysts’ expectations.

Anadarko Petroleum’s 4Q16 revenue estimate has been lower than its revenue estimates for the past two fiscal quarters. (Keep checking in with Market Realist for a detailed analysis of APC’s 4Q16 earnings.)

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Year-over-year revenue growth

Anadarko Petroleum’s (APC) 3Q16 revenue increased by ~12% YoY (year-over-year). By comparison, its YoY revenue growth was -66% in 3Q15 and -27% in 2Q16.

According to APC’s 4Q16 revenue estimates, its YoY revenue growth in 4Q16 is expected to be -12%. By comparison, peers Apache (APA) and Concho Resources (CXO) reported YoY revenue growth of -4% and -7%, respectively, in 3Q16.

Where will APC find revenue growth in 2017?

After its Gulf of Mexico acquisition from Freeport-McMoRan’s (FCX) Gulf of Mexico assets, the company expects to accelerate drilling activity in the Delaware and DJ basins. This will likely make a significant contribution to its revenue and cash flow growth.

Next, we’ll discuss Anadarko Petroleum’s 4Q16 earnings estimates.


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