No wonder Anadarko Petroleum Corp.’s quarterly loss was wider than Wall Street expected.
While the company blamed a loss on hedging and a jump in exploration expenses, the Houston-based company also reported it spent $565 million on dry holes in the third quarter,more than double what it spent a year ago. That’s a reflection how much Andarko has spent unsuccessfully in finding oil and natural gas.
Otherwise, shares fell 2.4% to $48.20 while Anadarko stock this year has lost 29% of its value. Anadarko reported a third-quarter net loss of $699 million or $1.27 a share. That compares to the $830 million in net loss or $1.61 a share one year ago.
Shares aren’t the only thing tumbling for the company. Its average daily sales volumes fell 20% to 626,000 barrels of oil equivalent. The company blamed asset sales and U.S. hurricanes for the drop.