Anadarko Petroleum beats estimates on higher output

Business

FILE PHOTO: The logo for Anadarko Petroleum corp. is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 30, 2019. REUTERS/Brendan McDermid

(Reuters) – Anadarko Petroleum Corp (APC.N) reported a better-than-expected quarterly profit on Friday, as higher production offset lower prices for oil, gas and natural gas liquids.

Anadarko’s second-quarter average daily production rose 16.8% to 744,000 barrels of oil equivalent, beating analysts’ expectations of 719,130 boepd, according to IBES data from Refinitiv.

Average oil prices fell 8.7% in the quarter, while gas prices dropped 10.2% and natural gas liquids prices tumbled 41%, Anadarko said.

Anadarko had agreed to be bought out by Occidental Petroleum for $38 billion after the latter outbid Chevron Corp’s (CVX.N) offer for the company’s vast shale holding in the prolific Permian Basin. Anadarko has paid Chevron a $1 billion break-up fee.

Billionaire investor Carl Icahn, who owns a 4.4% stake in Occidental, launched a proxy fight last week, arguing the company overpaid for Anadarko and failed to give shareholders a say in the proposed deal.

Occidental has sharply criticized Icahn’s efforts to oust and replace four of its directors and attacked his slate of board nominees as inadequate for the job.

Anadarko’s net loss was $1.03 billion, or $2.09 per share, in the latest quarter ended June 30, including the termination fee and merger-related costs.

Anadarko, which has operations in the United States, South America and Africa, said adjusted net income fell 10.4% to $249 million, or 51 cents per share.

Analysts on average had expected 50 cents per share.

Reporting by Shanti S Nair in Bengaluru; Editing by Anil D’Silva

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