Anadarko Beats Targets Despite Derivative Losses Weighing on Profit

By Patrick Thomas

Losses on derivatives helped swing Anadarko Petroleum Corp. (APC) to a loss in its first quarter, though growth in natural-gas sales and its gathering operations helped buffer the company's performance.

The Texas oil and gas company reported a loss of $15 million, or 3 cents a share, compared with a profit $121 million, or 22 cents a share, a year ago. Anadarko reported $313 million in derivative losses, compared with $35 million in the year-earlier period.

Excluding items like derivatives and restructuring charges, the company earned 53 cents a share. Analysts polled by FactSet were expecting earnings of 24 cents a share on an adjusted basis.

Revenue rose 5.7% to $3.22 billion, as analysts had expected $2.87 billion. Oil sales fell slightly for the quarter to $2.1 billion, but natural-gas sales rose 30% to $320 million.

Low oil prices during the quarter weighed on the company's top line. The average selling price for oil was $56.51 a barrel, compared with $63.66 a barrel a year ago. Sales rose to 412,000 barrels of oil equivalent a day, compared with 371,000 a year ago.

Anadarko's latest results come as it is in the midst of a bidding war over its assets. Occidental Petroleum Corp. (OXY) offered to buy the company for $38 billion, after it agreed earlier this month to be purchased by Chevron Corp. (CVX) for about $33 billion.

Anadarko has assets in West Texas, the heart of the shale-oil boom, and in East Africa.

Shares rose 0.2% to $71.92 in extended trading.

Write to Patrick Thomas at patrick.thomas@wsj.com

(END) Dow Jones Newswires

April 25, 2019 18:17 ET (22:17 GMT)

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