Anadarko Petroleum Corp. (NYSE: APC): Q2 Earnings Preview 2011

Anadarko Petroleum Corporation (NYSE: APC) is scheduled to release its second-quarter earnings before the opening bell on Monday, July 25, 2011. Analysts, on average, expect the company to report earnings of 91 cents per share on revenue of $3.47 billion. In the year ago quarter, the company reported earnings of 49 cents per share on revenue of $2.60 billion.

Anadarko Petroleum Corporation engages in the exploration and production of oil and gas properties primarily in the United States,the deepwater of the Gulf of Mexico, and Algeria. Anadarko has focused largely on upstream activities like the exploration and production of oil & gas rather than the refining and marketing of end products like gasoline, distillates and fuel oil. The majority of the large oil companies in the world are vertically integrated, but Anadarko has kept focus on its core strengths of exploration and production which has yielded handsome returns for investors in recent years.

In the preceding first quarter, the Woodlands, Texas-based company's net income was $216 million, or 43 cents per share, compared to $716 million, or $1.43 per share, in the year-earlier quarter. On an operating basis, the company earned 72 cents per share in the first quarter. Revenue rose to $3.25 billion from $3.14 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 58 cents per share on revenue of $3.09 billion. 

At its last earnings call in April, the company said that it expects total sales for the second quarter to come in the range of 60-62 MMBoe, while full-year sales estimate is in the 244-248 MMboe range. Anadarko projected other revenues, including Marketing & Gathering and Minerals & Other, to come in the ranges of $50-$70 million and $35-$45 million for the second quarter 2011. 

For full year 2011, Marketing and Gathering revenue is expected to be in the $225-$275 million range and the Minerals & Other revenue is expected to reach the $110-$140 million range. 

Anadarko's valuation continues to suffer based on the after-effects of the oil spill incident at the Macondo exploration well in the Gulf of Mexico. The resultant suspension of deepwater drilling in the Gulf of Mexico has hurt production volumes in the region. Also, uncertainty on Anadarko's liability for the clean-up of the oil spill remains. Anadarko owned a 25 percent stake in the blown-out Macondo well. BP had asked Anadarko to help pay for some of the cleanup and recovery costs, but the company has refused. Anadarko then filed a lawsuit in April, claiming it was not at fault for the explosion and spill. Anadarko has maintained that it has a strong legal position and should face no liability in last year's spill, but Jim Hackett, the company's chief executive, said in May that Anadarko would discuss the issue with BP under the right circumstances.

On the bright side, discoveries from Mozambique to Brazil, along with takeover talk, have returned the explorer's shares to pre-accident levels. The company is known for its deep and diversified asset base, low-risk and predictable production profile, global business development approach and brilliant execution capability. Anadarko has a proven track record of identifying and executing high-impact projects. At its last earnings call in November, the company executives emphasized not only the growth in exploration in places such as Brazil who look to increase infrastructure and would need a great deal of energy to match its expansion rate, but they also noted that the drilling and other such activities have been a success in these areas. Anadarko is also focused on strengthening its balance sheet and enhancing its financial flexibility and liquidity.

The company has also benefited from  higher oil prices. The demand for fossil fuels continued to rebound in recent months on an increase in global economic activity. Oil prices have advanced 27 percent in New York this year.

Anadarko is also focused on strengthening its balance sheet and enhancing its financial flexibility and liquidity. The company ended its first quarter 2011 with roughly $3.5 billion of cash on hand and maintained access to its $5 billion undrawn credit facility.

The company recently finalized an agreement with Exxon Mobil Corp. (NYSE: XOM) to jointly develop the Lucius field in the deepwater Gulf of Mexico. Anadarko said it will take a 35% working interest in the unit, which will extend to four blocks in the Keathley Canyon field about 250 miles southwest of New Orleans. Anadarko already has placed an order for a floating production facility that it says will have capacity of 80,000 barrels of oil a day and 450 million cubic feet of natural gas a day.

Full Disclosure: None.

Anadarko Petroleum Corp. (NYSE: APC): Q1 Earnings Preview 2011

Anadarko Petroleum Corporation (NYSE: APC) is scheduled to release its first-quarter earnings before the opening bell on Monday, May 2, 2011. Analysts, on average, expect the company to report earnings of 58 cents per share on revenue of $3.09 billion. In the year ago quarter, the company reported earnings of 83 cents per share on revenue of $3.14 billion.

Anadarko Petroleum Corporation engages in the exploration and production of oil and gas properties primarily in the United States,the deepwater of the Gulf of Mexico, and Algeria. Anadarko has focused largely on upstream activities like the exploration and production of oil & gas rather than the refining and marketing of end products like gasoline, distillates and fuel oil. The majority of the large oil companies in the world are vertically integrated, but Anadarko has kept focus on its core strengths of exploration and production which has yielded handsome returns for investors in recent years.

In the preceding fourth quarter, the Woodlands, Texas-based company's net income was $670 million, or $1.77 per share, compared to $582 million, or $1.72 per share,in the year-earlier quarter. On an adjusted basis, the company earned $2.19 a share in the fourth quarter. Revenue decreased to $3.43 billion from $2.56 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 22 cent per share on revenue of $2.75 billion.

Late in February, the company unveiled its 2011 capital program and guidance. The company expects total 2011 capital expenditures to be between $5.6 billion and $6.0 billion. This amount does not include expenditures by Western Gas Partners, LP, a separate publicly traded entity controlled by Anadarko and consolidated in its financial statements. Sales volumes for the first quarter are expected in a range of 60 - 62 million barrels of oil equivalent, or BOE. For the full year, the company sees sales volumes in a range of 244 - 248 million BOE.

Anadarko's valuation continues to suffer based on the after-effects of the oil spill incident at the Macondo exploration well in the Gulf of Mexico. The resultant suspension of deepwater drilling in the Gulf of Mexico has hurt production volumes in the region. Also, uncertainty on Anadarko's liability for the clean-up of the oil spill remains. Anadarko owns 25 percent of the ruptured Macondo well that BP operated.

On the bright side, discoveries from Mozambique to Brazil, along with takeover talk, have returned the explorer's shares to pre-accident levels. The company is known for its deep and diversified asset base, low-risk and predictable production profile, global business development approach and brilliant execution capability. Anadarko has a proven track record of identifying and executing high-impact projects. At its last earnings call in November, the company executives emphasized not only the growth in exploration in places such as Brazil who look to increase infrastructure and would need a great deal of energy to match its expansion rate, but they also noted that the drilling and other such activities have been a success in these areas. Anadarko is also focused on strengthening its balance sheet and enhancing its financial flexibility and liquidity.

The company has also benefited from  higher oil prices. The demand for fossil fuels continued to rebound in recent months on an increase in global economic activity. Crude-oil prices have also broken through $100-a-barrel on jitters tied to supply disruptions in Libya and political strife in the Middle East. Oil prices have advanced 23 percent in New York this year.

Full Disclosure: None.

Anadarko Petroleum Corporation (NYSE: APC): Q4 Earnings Preview 2010

Anadarko Petroleum Corporation (NYSE: APC) is scheduled to release its fourth-quarter financial results after the closing bell on Monday, January 31, 2011. Analysts, on average, expect the company to report earnings of 22 cent per share on revenue of $2.75 billion. In the year ago quarter, the company reported earnings of 4 cents per share on revenue of $2.42 billion.

Anadarko Petroleum Corporation engages in the exploration and production of oil and gas properties primarily in the United States,the deepwater of the Gulf of Mexico, and Algeria. Te company has nearly 7.7 trillion cubic feet of proved natural gas reserves.

In the preceding third quarter, the The Woodlands, Texas-based company's net loss was $26 million, or 5 cents a share, compared to a profit of $200 million, or 40 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned 40 cents a share in the latest quarter. Revenue dropped 11% to $2.55 billion from $2.87 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 28 cents per share on revenue of

$2.65 billion.

At its last earnings call in November, Anadarko raised its outlook for full-year sales volumes to a range of 233-236 MMBOE. For the fourth quarter of 2010, the company expects sales volumes in the 54-57 MMBOE range.

However, Anadarko lowered the midpoint of its anticipated capital expenditures for 2010. The company said that it now expectscapital expenditures in the range of $5.075-$5.270 billion for 2010 and $1.265-$1.460 billion for the fourth quarter.

Anadarko's valuation continues to suffer based on the after-effects of the oil spill incident at the Macondo (APC - 25% interest) exploration well in the Gulf of Mexico. The resultant suspension of deepwater drilling in the Gulf of Mexico has hurt production volumes in the region. Also, uncertainty on Anadarko's liability for the clean-up of the oil spill remains. Anadarko owns 25 percent of the ruptured Macondo well that BP operated.

On the bright side, discoveries from Mozambique to Brazil, along with takeover talk, have returned the explorer's shares to pre-accident levels. The company is known for its deep and diversified asset base, low-risk and predictable production profile, global business development approach and brilliant execution capability. Anadarko has a proven track record of identifying and executing high-impact projects. At its last earnings call in November, the company executives emphasized not only the growth in exploration in places such as Brazil who look to increase infrastructure and would need a great deal of energy to match its expansion rate, but they also noted that the drilling and other such activities have been a success in these areas. Anadarko is also focused on strengthening its balance sheet and enhancing its financial flexibility and liquidity.

Full Disclosure: None.

Anadarko Petroleum Corporation (NYSE: APC): Q3 Earnings Preview 2010

Anadarko Petroleum Corporation (NYSE: APC) is scheduled to release its third quarter earnings after the closing bell on Monday, November 1, 2010. Analysts, on average, expect the company to report earnings of 30 cents per share on revenue of $2.65 billion. In the year ago period, the company reported a loss of 11 cents per share on revenue of $2.74 billion.

Anadarko Petroleum Corporation engages in the exploration and production of oil and gas properties primarily in the United States, the deepwater of the Gulf of Mexico, and Algeria. It markets natural gas, crude oil, condensate, and oil and natural gas liquids, as well as owns and operates natural-gas gathering, processing, treating, and transportation systems.

In the preceding second quarter, the Woodlands, Texas-based company's net loss was $40 million, or 8 cents a share, from a loss of $226 million, or 48 cents a share, in the year-earlier quarter. Excluding one-time items, adjusted net income was $244 million, or 49 cents a share, in the second quarter. Revenue climbed to $2.6 billion from $1.91 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 36 cents per share on revenue of $2.75 billion. 

At its last earnings call in August, the company lifted its 2010 production outlook to 232 million to 236 million barrels of oil equivalent, up 5%-7% from 2009 output levels. 

For the third quarter, Anadarko anticipates total sales in the range of 55 MMBOE to 58 MMBOE.

The company is bracing for a tougher regulatory climate, and faces uncertainty over costs from a massive oil spill. Anadarko was part owner of the blown-out Macondo well, and could see significant liability, in addition to new restrictions following the largest offshore oil spill in U.S. history.

According to media reports, Cnooc (NYSE: CEO), China's largest offshore oil driller, reportedly submitted a $5 billion joint bid Ghana National Petroleum to acquire Kosmos Energy's stake in Ghana's Jubilee, an asset that Exxon Mobil (NYSE: XOM) has already offered $4 billion for. Shares of the company have rallied amid speculation that the Australian firm BHP Billiton Ltd. (NYSE: BHP) could be interested in buying the independent oil and gas exploration.

Among other developments,  Anadarko recently announced that the Barquentine exploration well in the Offshore Area 1 of Mozambique's Rovuma Basin encountered a total of more than 416 net feet of natural gas pay in multiple high-quality sands. Specifically, the discovery well encountered more than 308 net feet of pay in two Oligocene sands that are separate and distinct geologic features, but age-equivalent to those encountered in Anadarko's previously announced Windjammer discovery. The well also found an additional 108 net feet of natural gas pay in the Paleocene sands. This deeper pay appears to be part of the same accumulation as the 75 net feet of pay that was encountered at the Windjammer discovery, located 2 miles to the southwest.

Full Disclosure: None.