Comment on Anadarko's Third Quarter Earnings Likely Driven By Higher Production, Lower Oil Prices

Anadarko's Third Quarter Earnings Likely Driven By Higher Production, Lower Oil Prices

We expect lower crude oil prices to weigh on the company’s year-on-year earnings growth. The average West Texas Intermediate crude oil spot price declined by almost 8% year-on-year during the third quarter on rising supplies and falling global demand growth estimates. However, spot Henry Hub natural gas prices were up more than 11% y-o-y during the last three months, which should partially offset the impact of lower crude oil prices.

 

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