Anadarko Petroleum misses by $0.40, beats on revs, cuts CapEx by $300 mln, maintains expected oil production exit rates
- Reports Q2 (Jun) loss of $0.75 per share, excluding non-recurring items, $0.40 worse than the Capital IQ Consensus of ($0.35); revenues rose 41.8% year/year to $2.72 bln vs the $2.5 bln Capital IQ Consensus
- Achieved a 12% increase in total oil sales volume over the second quarter of 2016
- Increased overall sales-volume product mix to 67% liquids compared to 54% liquids in the second quarter of 2016
- Anadarko's second-quarter 2017 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 57 million barrels of oil equivalent (BOE), or an average of 631,000 BOE per day. During the second quarter, Anadarko achieved record oil sales volume in the Delaware Basin of West Texas averaging ~33,000 barrels of oil per day, a 52% increase over the second quarter of 2016
- Importantly, Anadarko is in the final stages of securing operatorship for ~70% of the acreage position, which was previously part of the joint-venture agreement that recently concluded with Shell
- Also, the co said, "Our portfolio delivered good operating results and cash flow during the second quarter with significantly improved cash margins and increased oil volumes year-over-year, even with the temporary production impacts associated with our response efforts in Colorado. Our successful divestitures further strengthened the company's cash position, while providing flexibility for the second half of the year and beyond. The current market conditions require lower capital intensity given the volatility of margins realized in this operating environment. As such, we are reducing our level of investments by $300 million for the full year, and adjusting full-year sales-volume guidance to reflect recent divestitures and the deferred production associated with the Colorado response. We feel this is a prudent move, while still expecting to average ~130,000 barrels of oil per day in the deepwater Gulf of Mexico and exit the year at around 150,000 barrels of oil per day from the Delaware and DJ basins combined."