Anadarko swings to $2.2B loss amid oil slump

Anadarko Petroleum Corp., one of the major oil and gas producers in Weld County, on Tuesday reported a loss of $2.2 billion, or $4.41 per share, for its third quarter that ended Sept. 30.

Anadarko (NYSE: APC) had a profit of $1.09 billion, or $2.12 per share for the third quarter a year earlier.

The Houston-based company, hurt by the slump in crude prices, reported revenue of $1.7 billion for the quarter, down from $5 billion for the same period a year ago and $2.64 billion recorded during the second quarter of this year.

During the quarter, crude prices fluctuated between $39 and $51 per barrel, and closed Tuesday at $43.41 per barrel.

In the Wattenberg field, mainly in Weld County, Anadarko increased oil sales volumes by 14 percent compared with the third quarter of 2014, the company said in its earnings report. During the quarter, the Wattenberg team improved its drilling metrics. Drilling cycle times were reduced by approximately 20 percent, with a corresponding 15 percent reduction in drilling costs per foot versus the second quarter of 2015.

“We remain committed to building and preserving value in this challenging environment,” Al Walker, Anadarko’s chairman, president and chief executive,” in a prepared statement. “During the third quarter, we continued our focus on maintaining long-term flexibility, while enhancing short-cycle returns by delivering higher-margin sales volumes for lower costs.”

Anadarko Petroleum shares have dropped 21 percent since the beginning of the year, while the Standard & Poor’s 500 index has stayed nearly flat. In the final minutes of trading on Tuesday, shares hit $65.29, a decrease of 26 percent in the last 12 months.

Anadarko ended the quarter with $2.1 billion of cash on hand.

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