Anadarko Petroleum Corporation (APC) posted strong numbers for the first quarter of 2010, driven by higher oil and gas prices. Net income from continuing operations was 81 cents per share, well above the Zacks Consensus Estimate of 42 cents and the net loss of 53 cents reported in the same period last year.
Sales volumes in the quarter improved 15% to 62 million barrels of oil equivalent (MMBOE) or 686 thousand BOE per day (MBOE/d). Daily sales volumes of crude oil & condensate, natural gas and natural gas liquids (NGL) averaged 222,000 barrels (up 27.6%), 2.4 billion cubic feet (up 3.4%) and 65,000 barrels (up 62.5%), respectively.
Commodity price realizations remained robust during the quarter, with oil and NGL prices almost doubling from last year. Additionally, there was a substantial improvement in natural gas realizations during the quarter. Realized prices for crude oil and condensate, natural gas and NGL averaged $75.18 per barrel (up 85%), $5.02 per thousand cubic feet (up 20%) and $46.64 per barrel (up 102%), respectively.
Revenue in the quarter increased 75% to $3.14 billion due to solid commodity prices and improved sales volumes. During the quarter, crude oil & condensate and NGL revenues improved 136% and 230%, respectively, and revenues from natural gas improved 24%. The strong improvement in liquids revenue was driven by the recovery in oil and NGL prices.
The company continued with its efforts to control costs and improve operational efficiency to stay competitive under the present challenging commodity price environment. Exploration expenses in the quarter improved 49% to $155 million compared to the same period last year.
Anadarko is also focused on strengthening its balance sheet and enhancing its financial flexibility and liquidity position. The company ended the quarter with $3.7 billion of cash in hand and a total debt of $11.6 billion. It had a debt-to-capitalization ratio of 38% as of March 31, 2010. Capital expenditure for the quarter was $1.2 billion compared with $1.1 billion last year.
Encouraged by the consistent performance of its producing properties, Anadarko raised its outlook for full-year sales volumes to a range of 230-234 MMBOE. For the second quarter of 2010, the company expects sales volumes to be in the 57-60 MMBOE range.
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