Anadarko Posts Record Loss in Industry's Worst Year Since 1986
(Bloomberg) -- Anadarko Petroleum Corp. posted its worst annual loss on record, underscoring the bleakest times for the oil industry since the producer spun off from Panhandle Eastern Pipe Line Co. during the 1986 price crash.
The third-largest U.S. natural gas producer reported a net loss of $1.25 billion, or 2.45 a share, for the fourth-quarter, compared with a year-earlier shortfall of $395 million, or 78 cents, according to a statement Monday. For the year, its $6.69 billion loss was the largest ever.
Anadarko, with operations from New Zealand to Utah, is among explorers abandoning drilling projects and cutting spending to weather crude’s 70 percent collapse since June 2014. The independent producer, which doesn’t own refineries or filling stations, has lost half its market value in a year and said it won’t boost production until prices rebound.
Last year, Anadarko withdrew an offer to buy shale driller Apache Corp. after the target refused to engage in talks. Investors have long speculated that Anadarko itself is a potential takeover opportunity for major oil producers seeking to expand their exposure to shale.
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