Anadarko Petroleum Loss Widens
02 February 2016 - 10:10AM
Dow Jones News
Anadarko Petroleum Corp. posted a wider loss compared with a
year earlier as the rout in the oil sector deepened, though the
bottom line came in better than markets had expected.
Shares of Anadarko, down 52% in the past 12 months, rose 4.4% to
$39.95 in after-hours trading.
The company, one of the largest independent oil and gas
producers in the U.S., along with the wider sector, has been
stressed by collapsing energy prices. Many of the factors that sent
oil on a historic plummet over the past 19 months haven't changed.
Oil prices fell for much of Monday, returning much of last week's
modest gains as traders seemed to lose faith that producers would
curb output and that China's slowing economy would stoke demand.
Some analysts expect oil prices to hover between $20 and $40 a
barrel until the second half of the year, with crude prices
remaining highly volatile.
To handle the downturn, Anadarko lowered its 2015 budget by
$3.37 billion, 36% less than in 2014—the start of the downturn—when
it spent nearly $9.3 billion.
Anadarko has tried to take advantage of the downturn, but
several efforts to expand have been stymied. Late last year, the
company made a bid to buy Apache Corp., but the smaller company
rebuffed Anadarko's all-stock offer. And Chief Executive Al Walker
has repeatedly complained of being outbid for acreage in the
Permian Basin, a prolific drilling region in West Texas.
For the latest quarter, Anadarko posted a loss of $1.25 billion,
or $2.45 cents a share, compared with a loss of $395 million, or 78
cents a share, a year earlier. Excluding certain items, the company
posted a loss of 57 cents a share, compared with a year earlier
when Anadarko had earnings of 37 cents a share.
Revenue fell 35% to $2.05 billion.
Analysts polled by Thomson Reuters expected a loss of $1.08 on
revenue of $2.1 billion.
The company, based in The Woodlands, Texas, has sold some of its
holdings abroad in recent years, including its China unit, to raise
cash to focus on extracting oil from unconventional formations in
the U.S.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com and Erin
Ailworth at Erin.Ailworth@wsj.com
(END) Dow Jones Newswires
February 01, 2016 17:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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