HOUSTON (Reuters) - U.S. oil and gas producer Anadarko Petroleum Corp (APC.N) on Tuesday posted a wider quarterly loss than Wall Street expected due in part to a loss on hedging and a jump in exploration expenses.
Shares of the company, which operates in several U.S. shale fields as well as Algeria, fell 2.4 percent to $48.20 in after-hours trading even as oil prices CLc1 inched higher. So far this year, Anadarko’s stock has lost 29 percent of its value.
The Houston-based company posted a third-quarter net loss of $699 million, or $1.27 per share, compared with a net loss of $830 million, or $1.61 per share, in the year-ago period.
Excluding one-time items, such as hedging losses and impairment charges, Anadarko lost 77 cents per share. By that measure, analysts expected a loss of 56 cents per share, according to Thomson Reuters I/B/E/S.
Anadarko spent $565 million on dry holes during the quarter, more than double the year-ago period. The exploration charge reflects how much the company spent trying unsuccessfully to find oil or natural gas.
Anadarko’s average daily sales volumes fell 20 percent to 626,000 barrels of oil equivalent due in part to asset sales and U.S. hurricanes that shuttered some output during the quarter.
Production jumped 37 percent in the Permian Basin, the largest U.S. oilfield, to 37,000 barrels of oil per day. Anadarko said it is on track to pump about 50,000 bpd in the Permian by the end of the year.
The company said last month it would spend $2.5 billion to buy back its stock, roughly 10 percent of its float. The deal was seen as a sign the company would focus more on shareholder returns, rather than increasing output at any cost.
“Looking to 2018, we will continue to demonstrate financial discipline as a foundational principle,” Anadarko Chief Executive Al Walker said in a Tuesday press release.
Executives plan to host a conference call on Wednesday morning to discuss the results.
(This story corrects Permian production number in seventh paragraph to oil production from oil-equivalent production.)
Reporting by Ernest Scheyder; Editing by Matthew Lewis