Earnings Preview: Anadarko to report 3Q results

posted: 28 DAYS 5 HOURS AGO

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THE WOODLANDS, Texas -Anadarko Petroleum Corp., one of the nation's largest independent exploration and production companies, reports third-quarter earnings Monday after the markets close. The following is a summary of key developments and analyst opinion related to the period:

OVERVIEW: Oil and gas producers, like Anadarko, have struggled amid low prices and growing supplies as demand fell off during the recession.

For the last week of the quarter, natural gas inventories held in underground storage in the lower 48 states totaled about 3.59 trillion cubic feet, according to the Energy Department's Energy Information Administration.

During the quarter, Anadarko benefited from a deepwater discovery off the shore of Sierra Leone, which confirmed the existence of an active petroleum system in the basin.

The find also lifted expectations for more oil finds in the company's vast acreage between a discovery in Ghana and Sierra Leone.

Anadarko has identified more than 30 prospects in its 10 block offshore West African position.

In July, Anadarko announced an oil discovery in a well in the deep waters of the Gulf of Mexico.

BY THE NUMBERS: Analysts polled by Thomson Reuters expect, on average, a net loss of 33 cents a share, on revenue of $1.2 billion.

ANALYST TAKE: Anadarko's natural gas production is expected to drop 5.8 percent from the second quarter, although the total should be 10.3 percent higher than the third quarter of 2008, Credit Suisse analysts Jonathan Wolff and Anish Patel said in a research note published Oct. 29.

In a note published Oct. 21, they narrowed their estimate for Anadarko's 2009 earnings per share to a loss of $1.70 from a loss of $1.87 and their 2010 earnings per share estimate to a loss of 11 cents from 83 cents.

The analysts said the revisions reflect "an updated view on production growth, costs and basis differentials."

WHAT'S AHEAD: Anadarko is expected to continue exploration off the coast of West Africa.

STOCK PERFORMANCE: Anadarko's stock price rose 38 percent during the third quarter.

2009-10-30 16:55:26