Texas-based Anadarko Petroleum sank to a $3.26 billion net loss for the first quarter despite record breaking production.
“The net loss includes certain items typically excluded by the investment community in published estimates, which in aggregate decreased net income by $2.903 billion or $5.73 per share (diluted) on an after-tax basis,” Anadarko said Tuesday.
Anadarko reported a $6.45 per diluted share, or $3.26 billion, net loss attributable to common stockholders.
The company booked a $153 million after tax loss, or $0.30 per diluted share and took $2.35 billion in after tax impairment charges.
Anadarko took a $50 million loss for early rig termination and a $252 million after tax net loss on divestitures.
Low oil prices and rising costs hit the company’s bottom line hard during the first quarter.
Anadarko booked $2.32 billion in first quarter revenue, down from $5.84 billion during the same period last year, while costs and expenses spiked to $6.52 billion, up from $2.86 billion during the first quarter of 2014.
Analysts polled by Thomson Reuters had expected revenue to hit $2.52 billion.
The company’s operating loss widened to $4.2 billion during the first quarter, a significant drop from the $2.97 billion in operating income Anadarko earned during the same quarter last year.
Anadarko’s first quarter sales volumes of natural gas, crude oil and natural gas liquids totaled a record 83 million barrels of oil equivalent, or an average of 920,000 boe per day, on a divestiture-adjusted basis.
“Our teams did an exceptional job of moderating our base production decline, while reducing our lease operating expense and working with our service providers to further drive down costs during the quarter,” CEO Al Walker said.