Oil Hits $200 ... Sort Of

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I noted back in June that Goldman Sachs (NYSE: GS) was calling for an oil price spike to $200. Well, that projection has panned out. In a manner of speaking.

You can see the line item toward the end of Anadarko Petroleum's (NYSE: APC) third-quarter earnings report, under "Crude Oil and Condensate, United States." Price per barrel: $205.13.

Unfortunately for fans of the super-spike theory, that price includes unrealized mark-to-market gains on oil-price derivatives. Nothing too exotic -- just plain, old-fashioned hedging by a commodity producer looking to protect its cash flow. Back out that paper gain, and Anadarko pulled in a pinch below $100 for its barrels of black gold.

Even at "only" $100, the independent oil and gas player naturally produced some strong results. Capital expenditures hewed closely to discretionary cash flow of more than $1.1 billion. Not only was Anadarko generating copious cash, it seems, but it was also not letting its capital budget run wild. That makes for a most potent combination in commodity land, one shared by similarly tickered Apache (NYSE: APA), which also stands apart for showing restraint during the run-up.

In fact, Anadarko was one of the few independents actively selling properties into this increasingly frothy market. XTO Energy (NYSE: XTO) described the period as "a time to grab hold or sit and miss." Anadarko did its grabbing back in 2006, and it has been deftly deleveraging ever since, in deals with the likes of Canadian Natural Resources (NYSE: CNQ) and BHP Billiton (NYSE: BHP).

What we're left with, fellow Fools, is a very well-financed entity, able to capitalize on market malaise by buying back boatloads of stock at suddenly very attractive prices. Anadarko may even return to the acquisition scene before too long, especially if other players start to encounter real distress.