Anadarko Petroleum Corp (APC) on Tuesday reported a plunge in second-quarter profit, as weak oil prices hurt sales, partly offset by some derivative gains. However, Anadarko's quarterly earnings topped Wall Street estimates, boosted by operational efficiencies and increased sale of higher-margin oil.
Looking ahead, the company said its third-quarter sales volume will be lower than the second quarter's 77 million barrels of oil equivalent (boe), and also cut its expectations for 2015.
Anadarko shares, after plunging 10 percent in the initial after-hours trade, pulled back to end the day's close at $72.85.
It has been grueling times for Anadarko and others in the industry, given the plunge in oil prices, forcing many to curtail their drilling programs and shed jobs. Oil prices are still below the $48-a-barrel mark as supply glut and muted demand continue to act as dampeners.
During the second quarter, Anadarko delivered more than 18,000 barrels per day of higher-margin oil sales volumes, driven by improvements in productivity and operating efficiencies, said its CEO Al Walker.
Anadarko posted second-quarter net earnings to common stockholders of $61 million or $0.12 per share, compared with $227 million or $0.45 per share last year.
Results for the quarter include one-time after-tax derivative gains of $145 million and divestiture losses of $77 million.
Excluding items, adjusted earnings for the quarter were $0.01 per share compared with $1.32 per share a year ago. On average, 33 analysts polled by Thomson Reuters estimated a loss of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the second quarter were $2.64 billion compared with $4.44 billion in the prior year. Twelve analysts had a consensus revenue estimate of $2.66 billion for the quarter.
For the third quarter, the company expects sales volumes of 71 to 73 million boe.
For the full year 2015, Anadarko now expects 298 to 302 million boe, down from a prior guidance of 300 to 306 million boe.
Earlier today, BP Plc. (BP.L, BP_UN.TO, BP) reported a loss for the second quarter, hit by a hefty charge related to the Gulf of Mexico spill, as well as a slump in oil and gas prices. BP reported a loss of $5.82 billion, compared with a profit of $3.37 billion in the prior year. Revenues and other income declined to $61.8 billion from $95.83 billion last year.
APC closed Tuesday at $72.85, up $2.86 or 4.09%, on a volume of 6.2 million shares. In after hours, the stock dropped $0.80 or 1.10% at $72.85. In the past year, the stock has trended in the range of $69.40 - $113.51.
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