Anadarko Petroleum said on Monday that its second-quarter net income dropped sharply on losses related to hedging, and year-ago results included a big gain for asset divestitures.
The independent oil and gas exploration and production company said net income in the quarter fell to $23 million, or 5 cents per share, from $1.3 billion or $2.81 per share in the same period a year earlier.
Results for the 2008 second-quarter included $1.02 billion in unrealized losses on derivatives, while the year-ago quarter included an after-tax gain of $951 million related to asset divestitures.
Total oil and gas production fell about 4 percent from a year ago to 548,000 barrels oil equivalent per day.
On an adjusted basis, the independent oil and gas company reported a profit of $831 million, or $1.76 per share, compared with $417 million, or 89 cents per share in the same period a year earlier.
Analysts on average had expected the Houston company to report a profit of $1.72 per share, according to Reuters Research.
Revenue fell to $2.79 billion from $4.59 billion.
Last year, Anadarko sold billions in assets to help pay down the debt it rang up in its $22.5 billion cash deal to buy rivals Kerr-McGee and Western Gas Resources.
Looking ahead, Anadarko said it still expects 2008 production of 207 million to 212 million barrels of oil equivalent.