Independents' quarterly earnings affected by commodity prices, costs

By the OGJ Online Staff

HOUSTON, Oct. 25 -- Large independents Apache Corp. and XTO Energy Inc. had third quarter earnings of $156.8 million and $70.3 million respectively, while Anadarko Petroleum Corp. declared a loss of $270 million.

A $483 million noncash after-tax impairment of the carrying value of producing properties in Canada and South America contributed to Houston-based Anadarko's loss. Before special items, Anadarko's net income was $213 million on total revenue of $1.74 billion.

For the same quarter a year ago, Anadarko posted earnings of $247 million on revenue of $1.82 billion.

Robert J. Allison Jr., Anadarko chairman and CEO, said, "Our third-quarter financial results were impacted, like everyone else's in the energy industry, by lower oil and natural gas prices and higher costs for drilling rigs and other oil field services, but our operating results were better than expected."

He said the company produced more than 51 million boe in the third quarter, slightly more than forecast, because of higher production from Alaska and Algeria and increased recovery of natural gas liquids. In third quarter 2000, Anadarko produced 40 million boe.

Anadarko's natural gas prices averaged $2.89/Mcf, down 94¢ from third quarter 2000.

Exploration activity continues, especially in the US Gulf of Mexico, where Anadarko agreed to farm into 95 blocks owned by BP Exploration & Production Inc. (OGJ Online, Oct. 25, 2001).

Apache
Houston-based Apache's third quarter revenue totaled $652.4 million, up from $618.5 million for the same quarter 2000 when the company earned $202.2 million.

During the latest quarter, the company increased production by 90,000 boe/d to 360,000. Those gains partially offset price declines: The quarter's average $2.80/Mcf natural gas price was down 24% from a year ago, and the average $24.14/bbl oil price was down 17%.

Apache Chairman and CEO Raymond Plank said, "Declining natural gas prices are causing North American drilling activity to plummet, threatening energy supplies ... Regrettably, at a time when stability and rationality should be the call words, we find ourselves in the most volatile natural gas pricing environment in history."

Plank attributed gas price volatility to "excessive speculation inherent in a gas market driven by paper trades" and said market conditions jeopardized US security.

XTO Energy
Fort Worth-based XTO Energy reported $197.3 million in revenue for the third quarter, up from $160.5 million for the same quarter a year ago when XTO posted earnings of $31.8 million.

The company produced 426 MMcfd of gas in the latest quarter, up sharply from 342 MMcfd a year ago.

A successful development program and hedged gas prices contributed to a good quarter and bode well for the future, said Steffen E. Palko, vice-chairman and president.

For the fourth quarter, XTO has hedged 413 MMcfd of gas at $4.11/Mcf.

The company expects fourth quarter natural gas production of 450-455 MMcfd, bringing its yearly average to 415-420 MMcfd.

XTO expects its natural gas liquids production to remain flat at 4,000-4,500 b/d. Its oil production should average 13,300-13,800 b/d for the fourth quarter and for the year, officials said.

Related Articles

Study finds small subset of wells accounts for most methane emissions

12/15/2014 A small subset of natural gas wells are responsible for most methane emissions from US natural gas production, said a study from the University of ...

Anadarko boosts Wattenberg production

10/16/2014 Anadarko Petroleum Corp. stepped up production in Wattenberg field in Colorado during the second quarter. The rise was attributed to the success of...

SM raises initial production rates in the Eagle Ford shale

10/16/2014 An improved completion design that utilizes longer laterals and increased sand loadings is raising initial production (IP) rates for SM Energy Corp...

Oil and gas midstream ripe for investment, Deloitte specialists say

05/14/2014 Surging US production has made oil and gas midstream operations attractive investment prospects, three Deloitte specialists said during the final d...

OTC: Shale, deepwater development present different challenges

05/06/2014 The oil and gas industry continues to unlock greater resources both onshore and offshore—in shale formations and in deepwater. Growing production f...

Anadarko settles legacy claims against Kerr-McGee for $5.15 billion

04/07/2014 Anadarko Petroleum Corp. and subsidiaries it acquired when it bought Kerr-McGee Corp. in 2006 agreed to pay $5.15 billion to settle fraudulent conv...

Brightoil Petroleum to buy Anadarko’s China subsidiary for $1.075 billion

02/18/2014

Brightoil Petroleum Holdings Ltd. of China plans to buy Anadarko Petroleum Corp.'s subsidiary in China for $1.075 billion.

Anadarko reports fourth-quarter loss, record yearend sales volumes

02/04/2014

Anadarko Petroleum Corp. reported a fourth-quarter net loss of $770 million, decreasing net income by $1.145 billion.

BLM Rock Springs office issues Monell-Arch field decision

01/06/2014 The US Bureau of Land Management found no significant potential impact from Anadarko Petroleum Corp.'s proposed development of the Monell and Arch ...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts

On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected