Anadarko Posts $226 Million Loss for 2Q

Anadarko Petroleum Corp. posted a loss of $226 million Monday for the second quarter because of falling energy prices and reduced demand.

Anadarko, among the largest independent exploration and production company, said the net loss attributable to common stockholders equaled 47 cents a share. In the second quarter of 2008, Anadarko reported profits of $23 million or 5 cents a share.

The loss this quarter includes $2 million from discontinued operations.

Anadarko's revenue fell to $1.74 billion compared with $2.78 billion in the second quarter of 2008.

Analysts surveyed by Thomson Reuters had forecast, on average, a net loss of 68 cents a share, on revenue of $1.76 billion. Analyst estimates typically exclude one-time items.

From the first to the second quarter, Anadarko had a 4 percent volume growth and cut lease operating expenses per barrel of oil equivalent by 12 percent, said Jim Hackett, chairman and CEO.

"We are continuing to drive down costs to better align them with the current commodity-price environment," he said in a statement.

Jefferies & Co. analyst Subash Chandra said Anadarko's production was higher than expected and costs were lower.

"The numbers looked good," he said. "I think investors will like this report."

The company, similar to others in the sector, face ongoing issues with overall natural gas markets and cool weather, he said. People are using a lot less electricity, which can drive the price of natural gas down.

The company announced last week it had made a deepwater discovery with its Vito well, drilled to about 32,000 feet.

Anadarko, based in a suburb of Houston, has a 20 percent working interest in the Vito well. Co-owners include Shell Offshore Inc., with 55 percent working interest, and StatoilHydro USA E&P Inc. with 25 percent working interest.

The quarterly results were released after the market closed Monday. Anadarko's shares closed up $1.40, or 3 percent, to $46.93 Monday but fell 6 cents in after-hours trading.

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