UBS Remains Bullish as Anadarko Petroleum (APC) Delivers Above Expectations
UBS reiterated a Buy rating on Anadarko Petroleum (NYSE: APC), and raised the price target to $64.00 (from $60.00), following the company's 1Q earnings report. APC reported an EPS loss of ($1.12) on a smaller than expected tax benefit, better than consensus of ($1.17). APC maintained its 2016 capex budget of ~$2.6-$2.8bn. The company also reiterated its 2016 volume guidance of 770-781 MBoed, which implies volumes will be down 2-4% YoY from the comparable 2015 base of ~800 MBoed.
Analyst William Featherston commented, "Clean 1Q16 EPS loss of ($1.12) was slightly weaker than UBSe of ($1.05) on a smaller than expected tax benefit but better than consensus of ($1.17). CFPS of $0.76 was above consensus of $0.70 & UBSe of $0.71. EBITDX of $733MM fell 47% YoY but was 7% above UBSe (on lower costs) and 17% above consensus. Production declined 12% YoY (-5.5% adjusted for asset sales) to 827 MBoed, in the upper half of 813-835 MBoed guidance & above consensus' 818 MBoed but in line with UBSe. Pre-tax perunit costs declined 5% YoY to $5.11/Mcfe, 12% below the peer 1Q avg and 3% below UBSe."
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Shares of Anadarko Petroleum closed at $51.95 yesterday.