HOUSTON – Anadarko Petroleum Corp.’s net income surged fivefold in the third quarter as it collected cash from asset sales and grew production at its Colorado and West Texas wells.
The Woodlands-based oil explorer banked a profit of $1.09 billion, or $2.13 a share, in the July-September period, compared to $182 million, or 36 cents a share, in the same period last year. Revenues increased from $3.9 billion to $5 billion, led by increases in oil and natural gas liquids sales.
The company said it saw an increase in liquids sales volume by more than 110,000 barrels a day and sold off about $1.2 billion in assets. It doubled its oil sales from its natural gas-rich Wattenberg field in Colorado and expanded sales in the oil-soaked Wolfcamp Shale in West Texas and the Eagle Ford Shale in South Texas.
Overall oil sales increased 10 percent to $2.6 billion, as natural gas liquids revenues climbed 30 percent to $424 million.
“The significant sales-volume growth was primarily driven by the excellent results of our Wattenberg horizontal program, where oil volumes doubled,” Anadarko CEO Al Walker said in a written statement.
Walker said the results boost Anadarko’s expectations for annual sales to 304 to 306 million barrels of oil equivalent.
The company said it is still on track to produce its first barrels of oil from its Lucius project in the Gulf of Mexico in the next couple of weeks. It had sold its China subsidiary in the third quarter along with other assets in the third quarter, increasing its cash on hand to $8.3 billion.
“We will continue to actively manage our deep portfolio of assets and evaluate opportunities,” Walker said.
Anadarko reported its third-quarter after markets closed on Tuesday. It will hold a conference call for investors at 8 a.m. on Wednesday.
Anadarko shares had closed up $2.03 on Tuesday to $90.35 on the New York Stock Exchange.
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