Anadarko Q2 EPS Tops Estimates; Revenue Misses
Anadarko Petroluem (NYSE: APC), the second-largest U.S. independent oil and natural gas producer, reported adjusted second-quarter earnings per share of 85 cents, which topped the consensus estimate of 77 cents a share. Revenue was light at $3.22 billion against the estimate of $3.38 billion.
During the quarter, Texas-based Anadarko sold 742,000 barrels of oil equivalent per day and increased oil sales volumes by approximately 20,000 barrels per day over first-quarter 2012. The company generated more than $1.9 billion of discretionary cash flow from operating activities, according to a statement.
During the quarter, oil volumes averaged approximately 241,000 barrels per day, natural gas liquids averaged 77,000 barrels per day and natural gas averaged 2.54 billion cubic feet per day.
Anadarko, which has one of the largest African footprints of any Western oil firm, announced its second major gas discovery off the coast of Mozambique during the second quarter as well as its first significant discovery offshore Côte d'Ivoire (Ivory Coast). The well encountered more than 100 net feet of light oil pay in Turonian-aged sands and confirmed the Upper Cretaceous fan system present in Ghana extends westward into, Anadarko said.
Anadarko had $142 million of free cash flow during the quarter in $2.8 billion in cash on hand at the ed of June. Those numbers were helped by Anadarko receiving $113 as part of a tax settlement with Algeria.
The company also reduced the outstanding balance of its revolving credit facility by approximately $800 million during the quarter, lowering its net debt to approximately $12 billion and its net debt to adjusted capital ratio to less than 38 percent, according to the statement.
Shares of Anadarko traded 0.4 percent higher in Monday's after-hours session.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.