Anadarko Posts Weaker-Than-Expected Results

By Josh Beckerman 

Anadarko Petroleum Corp. posted weaker-than-expected results for its first quarter but said production was strong.

The oil-and-gas exploration and production company, along with others in the sector, has been stung by the collapse in energy prices.

Revenue fell 60% to $2.32 billion in the latest period, while analysts polled by Thomson Reuters projected $2.52 billion.

Following first-quarter production of 83 million barrels of oil equivalent, the company said it has increased the midpoint of its full-year BOE guidance by 5 million.

"The significant cost savings, outstanding well performance and ongoing efficiency gains we achieved during the first quarter enabled Anadarko to deliver higher sales volumes for lower costs," the company said.

In March, Anadarko projected 2015 capital spending for 2015 of roughly $5.4 billion to $5.8 billion, about a third lower than last year's level, citing market conditions.

The company, of Woodlands, Texas, has divested some of its holdings abroad in recent years, including its China unit, to raise cash to focus on extracting oil from unconventional formations in the U.S.

Last week, the company named Darrell E. Hollek executive vice president, U.S. onshore exploration and production; and said Christopher O. Champion would become chief accounting officer June 1 as M. Cathy Douglas retires.

Anadarko posted a loss of $3.27 billion, or $6.45 a share, compared with a loss of $2.67 billion, or $5.30 a share, a year earlier. The loss excluding items was 72 cents a share, while analysts were looking for 64 cents.

Both periods contained items related to a $5.15 billion settlement related to the 2006 acquisition of Kerr-McGee and a dispute involving Kerr-McGee's chemicals unit, which was spun off into a company called Tronox Inc. that filed for bankruptcy in 2009.

Shares of Anadarko were down 0.8% in after-hours trading to $93.

Write to Josh Beckerman at [e-mail]

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