Anadarko Petroleum Corp., in a quiet period ahead of a vote to merge with Occidental Petroleum Corp., said higher production offset lower commodity prices, with year/year natural gas, oil and liquids volumes climbing overall by almost 17% during the second quarter, exceeding analyst expectations.
No conference call is scheduled as shareholders on Aug. 8 are set to vote on Occidental’s proposed $57 billion takeover offer, including debt, which offers $59.00/share in cash and 0.2934 shares for each share. At this point, the biggest obstacle to the merger appears to be shareholder Carl Icahn, who is opposed.
Anadarko’s second quarter production climbed nearly 17% year/year to total 63 million boe, or 744,000 boe/d, with oil volumes of 434,000 b/d.
The U.S. onshore assets, considered the No. 1 reason Permian Basin heavy Occidental wanted the company, reported sales volumes averaging 484,000 boe/d, including 207,000 b/d of oil. The Gulf of Mexico averaged 158,000 boe/d, including 130,000 b/d of oil. International output averaged 102,000 boe/d.
Average oil prices in the quarter fell 8.7%, while gas prices slid 10.2%. Natural gas liquids prices were off 41% from a year ago.
Net losses totaled $1.03 billion (minus $2.09/share) compared with year-ago profits of $29 million (5 cents). Included in the 2Q2019 loss was a $1 billion breakup fee paid to Chevron Corp., whose initial agreement to buy Anadarko was usurped by Occidental.
Year/year operating net cash fell to $776 million from $1.9 billion, while revenue was off at $3.44 billion from $6.66 billion.
Adjusted quarterly net income declined 10% year/year to $249 million (51 cents/share) from $278 million (54 cents) in 2Q2018.