Anadarko Petroleum to report 4Q results, expects to show higher sales volume for 2009

Earnings Preview: Anadarko to report 4Q results

THE WOODLANDS, Texas — Anadarko Petroleum Corp., one of the nation’s largest independent exploration and production companies, reports fourth-quarter earnings Monday after the markets close. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: The petroleum exploration and production industry has been hurt by the recession as prices plummeted and demand for its products diminished.

Some 40 percent of finance chiefs at those companies don’t expect business to improve until the second half of this year, according to a BDO Seidman survey released last month.

During the quarter, Anadarko announced discoveries that have the potential to become significant producers, including a well in the Gulf of Mexico that could deliver significant amounts of oil and gas. A joint venture of Anadarko and Devon Energy Corp. found an area in deep waters off Brazil that Anadarko says could become its next “mega project.”

The company, headquartered in Houston, forecast a 7 percent increase in full-year sales volume to 220 million barrels of oil equivalent.

BY THE NUMBERS: Analysts polled by Thomson Reuters expect, on average, earnings of 3 cents a share on revenue of $2.4 billion. Those estimates typically exclude special items.

A year ago, Anadarko reported profit of $824 million, or $1.79 a share, including special items that boosted net income by about $750 million. Revenue totaled $3.8 billion.

ANALYST TAKE: The company is expected to have a “pretty solid quarter, showing good production growth,” according to Argus Research analyst Phil Weiss. Like others in the industry, Anadarko cut spending during the economic downturn but has fared better than some of its competitors because of its exploration success, he said.

WHAT’S AHEAD: Anadarko is expected to reveal exploration results from a well off the coast of the African nation of Mozambique and more details of wells off Brazil.

STOCK PERFORMANCE: Anadarko shares were virtually unchanged for the quarter. They opened at $62.44 on Oct. 1 and closed at $62.42 on Dec. 31.