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Anadarko Sales Rise 12%

Charges weigh on earnings.
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Earnings jumped 49% at

Anadarko Petroleum

(APC) - Get Free Report

in the third quarter as higher sales and lower costs offset two charges and the impact of Hurricanes Katrina and Rita.

The exploration company earned $598 million, or $2.51 a share, in the quarter, compared with $401 million, or $1.58 a share, a year ago. The latest quarter included a charge of $90 million for unrealized derivatives losses and a charge of $13 million for an asset sale. It also had a gain of $19 million on a transportation contract.

Revenue rose 13% from a year ago to $1.76 billion, reflecting, among other things, a 10% rise in gas sales to $909 million and a 27% rise in oil sales to $752 million. Analysts had been forecasting revenue of $1.8 billion.

Anadarko produced 39 million barrels of oil equivalent in the quarter, or 426,000 a day. Natural gas sales volume averaged 1,382 million cubic feet a day, with an average realized price of $7.15 per thousand cubic feet. Oil sales volume was 162,000 barrels a day with an average realized price of $50.80 a barrel.

"Overall volumes were essentially flat from the second quarter 2005, despite the temporary impact of hurricanes, and were down year-over-year due to property sales associated with Anadarko's refocused strategy," the company said. "Adjusted for these property sales, volumes increased 8% year to date 2005 compared to the prior year."

The stock fell 62 cents, or 0.7%, to $86.63.