WASHINGTON (dpa-AFX) - Anadarko Petroleum Corp. (APC) said Monday after the markets closed that its first quarter profit rose sharply from last year, helped by a $1.8 billion benefit related to the resolution of a tax dispute in Algeria as well as record sales volumes.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue.
At the same time, the company raised its full year 2012 sales volumes guidance to a range of 258 to 262 million barrels of oil equivalent from its prior guidance of 256 to 260 million barrels of oil equivalent.
Anadarko Chairman and CEO Jim Hackett said, 'The operating results were highlighted by record sales volumes, a year-over-year increase of 27,000 barrels per day from our liquids-rich U.S. onshore growth properties, and the startup of oil production at Caesar/Tonga in the Gulf of Mexico.'
Anadarko shares are currently gaining 0.74% in after hours trading after closing the day's regular trading session at $73.21, down 58 cents. The shares trade in a 52-week range of $57.11 to $88.70.
Sales volumes in the first quarter rose to 64 million barrels of oil equivalent, or a record 704,000 barrels of oil equivalent per day, averaging about 221,000 barrels of oil per day, 80,000 barrels of natural gas liquids per day and 2.4 billion cubic feet of natural gas per day.
Oil and condensate sales for the quarter rose 24% to $2.24 billion, while natural gas sales fell 33% to $573 million.
Natural gas liquids sales grew 3% to $342 million, while gathering, processing and marketing sales increased 10% to $253 million.
Last month, the company resolved the Algeria tax dispute in a mutually beneficial manner that resulted in a $1.8 billion benefit in the first quarter, of which the company expects to receive about $1 billion in cash during 2012 and the balance during the first half of 2013. The resolution also included amended contract terms, which are expected to result in about 1.6 million barrels of additional oil volumes this year.
For the first quarter, the Houston, Texas-based company reported net income of $2.16 billion or $4.28 per share, compared to $216.0 million or $0.43 per share for the year-ago quarter.
The latest quarter results include certain unusual items that increased net income by $1.68 billion or $3.36 per share. The unusual items mainly consist of the $1.8 billion benefit associated with the resolution of the Algeria tax dispute and non-cash charge of $275 million related to the Tronox adversary proceeding.
Excluding the unusual items, earnings for the latest quarter was $0.92 per share.
On average, 31 analysts polled by Thomson Reuters expected the company to earn $0.83 per share for the first quarter. Analysts' estimates typically exclude special items.
Total revenue for the first quarter rose 6% to $3.45 billion from $3.25 billion in the same quarter last year. Twenty analysts had a consensus revenue estimate of $3.42 billion for the first quarter.
Looking forward, the company forecast total sales volumes of 64 to 66 million barrels of oil equivalent for the second quarter.
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