The company’s weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.
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Anadarko, like other oil companies faced with a more than 50-percent decline in crude, is working to improve drilling efficiency and productivity while keeping a close eye on costs, Chief Executive Officer Al Walker said in a news release.
Anadarko Petroleum Corp. this morning reported a $2.2 billion loss for the third quarter of the year, while commodity prices continue to sag.
Anadarko Petroleum Corp. on Tuesday swung to a $2.24 billion loss in its third quarter amid hefty impairment charges and a drop in revenue.
During the third quarter, Anadarko’s sales volumes of crude oil, natural gas and natural gas liquids (NGLs) totaled 73 million BOE, or an average of 787,000 BOE per day. Anadarko boosted its USA production 11 percent in the quarter.
Efforts to save cash in the oil field are starting to pay off, though, as Anadarko has cut drilling cycle times by 20 percent and costs have come down 15 percent for every foot it drills in its core regions.
“This emerging oil play is beginning to contend with Wattenberg in terms of the most attractive economics in the company’s US onshore portfolio”, the company said. Analysts expected revenue of $2.31 billion for the quarter. With the significant milestones achieved to date, first oil at Heidelberg has been accelerated and is now anticipated in the second quarter of 2016 from the first three subsea wells, with production from two additional wells coming on line at a later date.
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Overall oil and gas realizations also suffered for Anadarko Petroleum, which also slid in the quarter.
