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Anadarko Petroleum Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 29, 2012 03:04PM

Anadarko Petroleum Corp. (APC) filed Quarterly Report for the period ended 2012-09-30. Anadarko Petroleum Corp has a market cap of $33.22 billion; its shares were traded at around $66.49 with a P/E ratio of 20.3 and P/S ratio of 2.4. The dividend yield of Anadarko Petroleum Corp stocks is 0.5%. Anadarko Petroleum Corp had an annual average earning growth of 2% over the past 10 years.



Highlight of Business Operations:

Net Income (Loss) Attributable to Common Stockholders For the three months ended September 30, 2012, Anadarko’s net income attributable to common stockholders totaled $121 million, or $0.24 per share (diluted), compared to a net loss attributable to common stockholders of $3.1 billion, or $6.12 per share (diluted), for the three months ended September 30, 2011. For the nine months ended September 30, 2012, Anadarko’s net income attributable to common stockholders totaled $2.2 billion, or $4.34 per share (diluted), compared to a net loss attributable to common stockholders of $2.3 billion, or $4.60 per share (diluted), for the same period of 2011. As discussed more fully below, Anadarko’s net income for the nine months ended September 30, 2012, included $1.8 billion related to the favorable resolution of the Algeria exceptional profits tax dispute and $844 million of unproved property impairments. Anadarko’s net income for the three and nine months ended September 30, 2011, included the effects of the $4.0 billion settlement agreement, mutual releases, and agreement to indemnify relating to the Deepwater Horizon events (Settlement Agreement). See Note 11—Contingencies—Deepwater Horizon Events in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information.

For the three and nine months ended September 30, 2012, oil and gas transportation and other expenses increased by $30 million and $77 million, respectively, primarily due to higher gas gathering and transportation costs attributable to higher volumes and increased costs attributable to growth in the Company’s U.S. onshore asset base. The increase for the nine months ended September 30, 2012, was partially offset by a $25 million reversal of previously accrued rig termination fees for a deepwater drilling rig in the Gulf of Mexico. This expense reversal resulted from a dispute settlement with the drilling contractor. See Note 11—Contingencies—Deepwater Drilling Moratorium and Other Related Matters in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for additional information. For the three and nine months ended September 30, 2012, oil and gas transportation and other expenses per BOE increased by $0.07 and $0.14, respectively, primarily due to the higher costs discussed above, partially offset by increased sales volumes.

For the three and nine months ended September 30, 2012, other taxes decreased by $108 million and $162 million, respectively, primarily related to lower Algeria exceptional profits taxes of $45 million and $90 million, respectively, due to a lower Algeria effective tax rate resulting from the resolution of the Algeria exceptional profits tax dispute. Other taxes were also lower for the three and nine months ended September 30, 2012, due to decreased U.S. production and severance taxes of $39 million and $50 million, respectively, resulting from lower commodity prices, and lower Chinese windfall profits tax of $17 million and $18 million, respectively.

In March 2012, the Company reached an agreement with Sonatrach to resolve the exceptional profits tax dispute. The agreement was approved by the Algerian government and provides for delivery to the Company of crude oil valued at approximately $1.7 billion and the elimination of $62 million of the Company’s previously recorded and unpaid transportation charges. The crude oil is to be delivered to the Company over a 12-month period that began in June 2012. The Company recognized a $1.8 billion credit in the Costs and Expenses section of the Consolidated Statement of Income in the first quarter of 2012 to reflect the effect of this agreement on previously recorded expenses. During the nine months ended September 30, 2012, the Company collected $614 million associated with the Algeria exceptional profits tax receivable. The Company expects to collect approximately $400 million during the fourth quarter of 2012 and the balance of the Algeria exceptional profits tax receivable during the first half of 2013. Additionally, the parties agreed to an amendment to the existing Production Sharing Agreement (PSA) that provides the Company increased sales volumes and a lower effective exceptional profits tax rate in future periods. The amendment also confirms the duration for each exploitation license granted under the PSA will be 25 years from the date the license was awarded.

During the nine months ended September 30, 2012, the Company repaid $1.5 billion of borrowings under the Company’s $5.0 billion Facility with cash on hand. At September 30, 2012, the Company had outstanding borrowings of $1.0 billion at an interest rate of 1.72% under the $5.0 billion Facility. These borrowings were used to fund a portion of the Company’s 2011 Settlement Agreement with BP. The Company intends to repay these borrowings with cash on hand and cash realized from the resolution of the Algeria exceptional profits tax dispute.

Read the The complete Report



Stocks Discussed: APC,
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