Earnings Preview: Anadarko Petroleum (APC)

Anadarko Petroleum Corporation

is currently higher on the session by 3.30%, trading at $63.60. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q3 earnings per share of $0.28 on revenue of $2.65 billion. These estimates have risen by $0.03 (+12%) over the past 90 days. The Whisper number for APC is $0.28. • Guidance The Street is looking for Q4 EPS of $0.27 on revenue of $2.70 billion. The full year 2010 estimates are $1.87 per share on revenue of $11.26 billion; FY 2011 is at $2.16 per share on revenues of $12.11 billion. • Technical Picture APC has been moving largely higher over since mid-June, when shares hit a low near $34.50. Sine then, shares of APC have regained the 18-day, 50-day, and 200-day moving averages, all of which are currently uptrending. Resistance comes into play around $70.00. • Volatility Both historical volatility and implied volatility have been falling for the past few months, following a spike higher in June. Currently HI is at 36% and IV is at 42%. The front month $62.50/65.00 strangle is trading at 50.21%; the December $62.50/65.00 strangle is trading at 40.99%. Vol is skewed toward the puts in both months. Anadarko Petroleum Corporation is an independent oil and gas exploration and production company, with 2.3 billion barrels of oil equivalent of proved reserves as of December 31, 2009. The company operates in three operating segments: Oil and gas exploration and production, Midstream and Marketing.