Anadarko Petroleum Swings To Loss On Provisions
Anadarko Petroleum (NYSE: 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.
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.
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