Anadarko Petroleum Corporation : Anadarko 1Q Profit Soars On Algeria Deal; Output Grows
04/30/2012| 04:44pm US/Eastern
Anadarko Petroleum Corp.'s (APC) first-quarter profit surged as the oil-and-gas company booked a huge gain from a tax-related settlement in Algeria, while higher oil prices and rising production lifted its top line.
Anadarko's core earnings have surged over the past year as the independent producer extracts more oil and gas from shale rock formations and production in the U.S. Gulf of Mexico jumps back above levels seen before the 2010 Deepwater Horizon disaster. The company also has had a string of exploration successes in Africa.
In Algeria, Anadarko last month reached an amicable resolution in a long-standing dispute over a windfall profit tax with Algeria's Sonatrach. The deal is estimated to net the Texas company $4.4 billion over several years. A production-sharing agreement tying both companies was also amended to give Anadarko a bigger share of profits from the companies' joint operations, which at recent prices would mean an extra $2.6 billion in net value over the remaining term of the deal.
Anadarko's growing production comes as longtime Chief Executive Jim Hackett prepares to step down from the helm of the oil-and-gas producer in May. Chief Operating Officer Al Walker is slated to succeed him.
In the latest quarter, Anadarko posted a profit of $2.16 billion, or $4.28 a share, up from $216 million, or 43 cents a share, a year earlier. Excluding the effects of derivatives, the Algeria agreement and other adjustments, earnings rose to 92 cents from 73 cents as revenue grew 6% to $3.45 billion.
Analysts polled by Thomson Reuters were looking for an 83-cent-per-share profit with $3.42 billion of revenue.
Total production, or sales volume, edged up 3.2%. Anadarko's average daily sales price for oil and condensates rose 17%, even as the price for gas slumped 34%.
Shares were up 1.1% at $74 in after-hours trading. The stock was off 7.3% over the past year through Monday's close.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com