Anadarko Petroleum (APC) continues to beat earnings estimates, and its quarter results released on Monday show an impressive 12%+ year-on-year increase in sales volumes—with more gains expected in the coming weeks.
The exploration and production company’s earnings report shows sales volumes of 71 million barrels of oil for Q1 2013, or 793,000 boe/day, up from 704,000 boe/day for the same period last year.
Anadarko is riding high on its Eagle Ford liquids bonanza to the tune of about 600 million barrels of oil equivalent—65% of which is oil and natural gas liquids. Anadarko also said it had record sales in the Marcellus Shale, in East Texas and in its Permian Basin oil assets.
Despite weak energy prices, Anadarko earned $1.08 per share for the quarter—an increase of 17% from last year, and 14% above expectations.
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Anadarko’s market cap stands at $55 billion, and analysts are looking at up to 14% revenue growth over the next two years. But what investors should really like is the cash flow, which has grown by 60% over the last two years and ensures the company has the capital to develop some of its lucrative assets.
Not only has the company beat earnings estimates for five quarters running, but its worldwide assets (including in China), are sweet prospects—from Ghana and Mozambique to Algeria.
Anadarko’s asset portfolio is impressive, onshore and offshore, from its US assets in the Rocky Mountains, Appalachian Basin, Alaska and the Gulf of Mexico, to highly prospective basins in Ghana, Mozambique, Algeria, China and New Zealand.
By. Jen Alic of Oilprice.com