Anadarko Petroleum Corporation (NYSE:APC) Earnings Analysis
Anadarko Petroleum Corporation (NYSE:APC) discussed its Q2, 2013 results yesterday. Based on the preliminary financial results for the quarter ended 2013-06-30 we analyze the company’s performance (over the last twelve months unless stated otherwise). Our analysis is peer relative and we used the following peer-set: Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), BP plc (NYSE:BP) (LON:BP), ConocoPhillips (NYSE:COP), Occidental Petroleum Corporation (NYSE:OXY), Devon Energy Corp (NYSE:DVN), Chesapeake Energy Corporation (NYSE:CHK), Murphy Oil Corporation (NYSE:MUR) and Newfield Exploration Co. (NYSE:NFX). The table below shows the preliminary results along with the recent trend charts for revenues and net margins.
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|Quarterly (USD million)||2013-06-30||2013-03-31||2012-12-31||2012-09-30||2012-06-30|
|Revenue Growth %||(7.3)||8.7||3.9||2.4||(6.1)|
|Net Income Growth %||103.3||110.6||80.8||N/A||(104.2)|
|Net Margin %||27.0||12.3||6.4||3.7||(2.8)|
|ROE % (Annualized)||17.2||8.8||4.2||2.4||(1.8)|
|ROA % (Annualized)||6.8||3.4||1.6||0.9||(0.7)|
Anadarko Petroleum Corp.’s current Price/Book of 2.0 is about median in its peer group. The market expects the company to grow faster than the median of its chosen peers (PE of 26.0 compared to peer median of 10.5) and to improve its current ROE of 8.1% which is below its peer median of 10.5%. Thus, the market seems to expect a turnaround in Anadarko’s current performance.
The company’s relatively high profit margins (currently 12.4% vs. peer median of 8.4%) are burdened by asset inefficiency with asset turns of 0.3x compared to the peer median of 0.4x. Overall, this suggests a margin driven operating model relative to its peers. APC’s net margin is greater than (but within one standard deviation of) its five-year average net margin of 5.2%.
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Anadarko Petroleum Corp. Profile
Anadarko Petroleum Corporation (NYSE:APC) is an independent exploration and production company. Its asset portfolio includes positions in onshore resource plays in the Rocky Mountains region, the southern United States, and the Appalachian basin. Anadarko Petroleum was founded in 1959 and is headquartered in The Woodlands, TX.
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