Anadarko Petroleum Swings To Loss On Provisions

Anadarko Petroleum APC shares fell as much as 3.7 percent to $75.25 in after-hours trading on Monday, as the gas giant reported its quarterly results.

Anadarko Petroleum reported a wide quarterly loss of $770 million, or $1.53 a diluted share, due to massive provisions for the most part. These contingent losses were linked to a legal dispute related to the company's 2006 acquisition of Kerr-McGee.

The lawsuit, filed in 2009, concerned Anadarko's acquisition of the oil and gas producer for $16.4 billion. The deal came a short time after Kerr-McGee rid itself of liabilities from its chemicals business, which eventually was spun off into a new company called Tronox. The company also lost a horde of cash in Tronox's spinoff.

Related: Earnings Expectations For The Week Of February 3: GM, Twitter, Disney And More

Profit in the fourth quarter a year ago was $203 million, or 40 cents per diluted share.

But in the fourth quarter, sales of oil and gas slipped to $3.34 billion from $3.41 billion year-over-year on softer prices. Analysts polled by FactSet, had predicted Anadarko would post a profit of 89 cents a share on $3.92 billion in revenue.

One-time items, including those related to its spinoff of Tronox, shaved $2.27 a share off the bottom line. Revenue for the quarter fell to $3.34 billion from $3.41 billion.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EarningsNewsGuidanceCommoditiesMarketsFactSetTronox
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!