Charges Force Anadarko Petroleum Corporation to Report a Loss

Anadarko Petroleum Corporation (NYSE: APC  ) released its fourth-quarter and full-year results after the markets closed. The company reported a net loss of $700 million, or $1.53 per share in the fourth quarter. The company took $1.145 billion in charges, or $2.27 per share on the quarter including an accrual relating to its potential liabilities from Tronox Ltd. (NYSE: TROX  ) . Even after adjusting for these charges, the company reported earnings of $0.74 per share, which was well below the $0.89 the analysts were expecting.

While Anadarko Petroleum's earnings were affected by the charges it took on the quarter, overall, the company's core oil and gas business reported solid results. The company's oil and gas production grew to an average of 781,000 barrels of oil equivalent per day on the year, which was a 7% increase from 2012. Production growth was especially strong in the U.S. Overall, Anadarko Petroleum's U.S. onshore business achieved a 25% increase in production this year as strong performance in the Eagle Ford Shale in Texas as well as the Wattenberg field in Colorado led the way.

In addition to its strength onshore in the U.S., the company achieved industry leading success in its exploration program. Last year, Anadarko discovered commercial quantities of oil and gas on two-thirds of its deepwater wells. Among the highlights is what could turn out to be one of the largest oil discoveries in the Gulf of Mexico. That's in addition to the company's continued success in Mozambique.

The Tronox-related potential loss liabilities will continue to overshadow Anadarko's oil and gas results in the near-term. However, once those claims are settled, Anadarko investors will again be able to focus on the company's strong oil and gas growth opportunities around the world. 

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2821745, ~/Articles/ArticleHandler.aspx, 8/31/2015 9:58:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Matt DiLallo

Matthew is a Senior Energy and Materials Specialist with The Motley Fool. He graduated from the Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries:

Today's Market

updated 42 minutes ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:01 PM
APC $71.58 Up +0.64 +0.90%
Anadarko Petroleum… CAPS Rating: ***
TROX $8.05 Up +0.33 +4.27%