Anadarko Petroleum Corp. (NYSE: APC) on Nov. 1 posted a wider quarterly loss than Wall Street expected due in part to a loss on hedging and a jump in exploration expenses.
Shares of the Houston-based oil and gas producer, which operates in several U.S. shale fields as well as Algeria, fell 2.4% to $48.20 in after-hours trading even as oil prices inched higher. So far this year, Anadarko's stock has lost 29% of its value.
The company posted a third-quarter net loss of $699 million, or $1.27 per share, compared with a net loss of $830 million, or $1.61 per share, in the year-ago period.
Excluding one-time items, such as hedging losses and impairment charges, Anadarko lost 77 cents per share. By that measure, analysts expected a loss of 56 cents per share, according to Thomson Reuters I/B/E/S.
Anadarko spent $565 million on dry holes during the quarter, more than double the year-ago period. The exploration charge reflects how much the company spent trying unsuccessfully to find oil or natural gas.
Anadarko's average daily sales volumes fell 20% to 626,000 barrels of oil equivalent due in part to asset sales and U.S. hurricanes that shuttered some output during the quarter.
Production jumped 37% in the Permian Basin, the largest U.S. oil field, to 37,000 barrels per day (bbl/d) of oil. Anadarko said it is on track to pump about 50,000 bbl/d in the Permian by the end of the year.
The company said last month it would spend $2.5 billion to buy back its stock, roughly 10% of its float. The deal was seen as a sign the company would focus more on shareholder returns, rather than increasing output at any cost.
"Looking to 2018, we will continue to demonstrate financial discipline as a foundational principle," Anadarko CEO Al Walker said in a Nov. 1 press release.
Recommended Reading
EOG: Utica Oil Can ‘Compete with the Best Plays in America’
2024-05-06 - Oil per lateral foot in the Utica is as good as top Permian wells, EOG Resources told analysts May 3 as the company is taking the play to three-mile laterals and longer.
E&P Highlights: May 6, 2024
2024-05-06 - Here’s a roundup of the latest E&P headlines, including technology milestones and new contract awards.
US Oil, Gas Rig Count Falls to Lowest Since January 2022
2024-05-03 - The oil and gas rig count, an early indicator of future output, fell by eight to 605 in the week to May 3, in the biggest weekly decline since September 2023.
Pemex Reports Lower 2Q Production, Net Income
2024-05-03 - Mexico’s Pemex reported both lower oil and gas production and a 91% drop in net income in first-quarter 2024, but the company also reduced its total debt to $101.5 billion, executives said during an earnings webcast with analysts.
Chouest Acquires ROV Company ROVOP to Expand Subsea Capabilities
2024-05-02 - With the acquisition of ROVOP, Chouest will have a fleet of more than 100 ROVs.