Wednesday, November 6, 2013

Anadarko Petroleum Reports Q3 Numbers


Anadarko Petroleum (APC) reported non-GAAP earnings of $1.13 per diluted share on revenues of $3.9B in quarter 3 of 2013.  Earnings were up 34.5% compared to 2012 numbers, however the company missed estimates by $.03.  The increase in revenue was driven by a 31.3% increase in natural gas sales and a 10.7% increase in liquids sales. 
We witnessed increased sales volumes amounting to 71 million barrels of equivalent, which was 3 million more than in 2012.  A staggering of production from their Wattenberg, Eagleford, and East Texas horizontal assets caused this increase.  Anadarko realized higher crude prices than anticipated as the average barrel went for $106.05, while natural gas prices were still low at $3.33 per thousand cubic feet. 
Operating costs rose substantially to $3.16 billion, which was a rise of 25.8% because of increases in oil and gas operating expenses and marketing expenses.  Due to this enormous increase in expenses, operating profit was down 15.6% to $689 million.  

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