Anadarko Swings to 4Q Loss amid Deepwater Horizon Charges

HOUSTON - Anadarko Petroleum Corp. swung to a fourth-quarter loss on Deepwater Horizon disaster-related settlement charges and asset write-downs.

Shares rose 1.9% to $84.47 in after-hours trading as adjusted earnings and revenue beat expectations.

The oil-and-gas producer has continued to see core earnings climb recently as it focuses on production in the U.S. Gulf and in natural gas-rich shale formations like Ohio's Utica shale and Pennsylvania's Marcellus shale. The company also has had a string of exploration successes in Africa and the U.S. Gulf of Mexico. But the quarter reflected the costs of Anadarko's participation in the BP PLC-led Deepwater Horizon well, which blew out in April 2010, killing 11 and unleashing the worst offshore oil spill in U.S. history.

After months of litigation and public relations broadsides against BP, Anadarko paid the U.K. oil giant $4 billion to settle all claims related to the disaster. The move was welcomed by investors because it put a limit to the final cost of the spill for Anadarko, but resulted in a negative cash flow of $2.087 billion from operating activities in the fourth quarter, Anadarko said.

Anadarko reported a loss of $358 million, or 72 cents a share, from a year-earlier profit of $111 million, or 22 cents a share. Excluding Deepwater Horizon settlement and related costs, asset write-downs and other items, earnings were up at 85 cents, from 38 cents. Revenue climbed 43% to $3.84 billion.

Analysts polled by Thomson Reuters most recently projected earnings of 62 cents a share on revenue of $3.33 billion.

Anadarko said it added 392 million barrels of oil equivalent of proved reserves in 2011, replacing 159% of the oil and gas it produced during the year.

Copyright (c) 2012 Dow Jones & Company, Inc.


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