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A Look at Anadarko’s 2Q17 Earnings Estimates

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Anadarko Petroleum’s 2Q17 revenue expectations

Anadarko Petroleum (APC) plans to release its 2Q17 earnings on July 24, 2017, after the markets close. APC’s 2Q17 revenue estimate stands at ~$2.5 billion compared to its 2Q16 revenues of ~$1.9 billion. APC’s 1Q17 revenues totaled $3.7 billion.

As we can see in the chart above, Anadarko Petroleum’s 2Q17 revenue estimate is lower than its revenues in the previous quarter. Also, APC’s revenues overshot analysts’ expectations in the previous two quarters. Investors should watch to see whether this trend continues in 2Q17.

Keep watching Market Realist for a detailed analysis of APC’s 2Q17 earnings.

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APC’s revenue growth and net profit margin

Anadarko Petroleum’s (APC) revenues rose ~125.0% YoY (year-over-year) in 1Q17. Based on its 2Q17 estimates, APC’s revenues are expected to rise ~28% in 2Q17 on a YoY basis. In comparison, its YoY revenue growth was -27% in 2Q16.

Anadarko Petroleum’s 2Q17 earnings estimates

APC’s 2Q17 EPS (earnings per share) estimate is about -$0.22. APC posted adjusted EPS of -$0.60 in 2Q16. Its 1Q17 EPS was also -$0.60.

Anadarko Petroleum’s peers Concho Resources (CXO) and Apache Corporation (APA) are expected to report earnings per share of ~$0.44 and $0.09, respectively, in 2Q17.

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Management’s thoughts for 2017

Anadarko Petroleum (APC) plans to focus on its US onshore operations, including its DJ Basin and Delaware Basin operations in 2017. It also plans to focus on its Deepwater Gulf of Mexico operations this year.

Key players in the DJ Basin include PDC Energy (PDCE) and Noble Energy (NBL). Key players in the Delaware Basin include Cimarex Energy (XEC) and EP Energy (EPE). Hess (HES) is another key player that is focusing on the Gulf of Mexico.

Anadarko Petroleum’s management believes that its cash position and improved cash flows—aided by sustained oil (DBO) production from its deepwater exploration program as well as free cash flow from its Algeria and Ghana assets—could land the company in a strategic position. This could boost its growth in the DJ Basin, the Delaware Basin, and the deepwater Gulf of Mexico.

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