July 31, 2018 / 9:13 PM / 3 months ago

UPDATE 2-Anadarko Petroleum misses profit estimates, beats revenue expectations

(Adds details from earnings report, context)

By Liz Hampton

HOUSTON, July 31 (Reuters) - Anadarko Petroleum Corp on Tuesday missed Wall Street quarterly profit estimates but beat expectations on revenue as production increased and margins improved in its U.S. shale operations.

Revenue rose to $3.29 billion in the second quarter from $1.4 billion a year ago, topping analysts' consensus estimate of $3.07 billion, according to Thomson Reuters I/B/E/S.

Adjusting for divestitures, U.S. onshore oil volumes rose by 54,000 barrels per day from a year ago, and per-barrel margins totaled close to $31.60, Chief Executive Al Walker said in a statement.

U.S. oil producers have benefited from a roughly 40 percent jump in crude prices in the past year to around $70 a barrel as major oil producers agreed to cut output to stabilize prices and some countries faced supply disruptions.

This month, U.S. oil production hit a record 11 million barrels per day, aided by surging production in the Permian Basin of West Texas and New Mexico.

Anadarko grew its Delaware Basin production in West Texas by 88 percent from the previous year, averaging a record 62,000 barrels per day during the second quarter.

The company earned 5 cents per share in the quarter, missing Wall Street estimates for 54 cents, according to Thomson Reuters I/B/E/S. The company reported $267 million in pre-tax losses on the settlement of commodity derivatives, which resulted in a 40-cent per share hit to earnings.

Adjusted net income for the quarter was $278 million, or 54 cents per share, 2 cents per share below analysts' expectations.

Total sales volumes for the quarter, including crude, natural gas and natural gas liquids, averaged 637,000 barrels of oil equivalent per day, up only slightly from the prior year.

The company increased full-year capital investment expectations by $250 million from prior guidance to between $4.5 billion and $4.8 billion.

Anadarko shares were trading at $71.67, down about 1 percent. (Reporting by Liz Hampton; Editing by Richard Chang and Grant McCool)

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