(Reuters) – Oil and gas producer Anadarko Petroleum Corp on Tuesday reported a fourth-quarter profit that missed analysts’ estimates by a wide margin, as it spent more on its projects in West Texas and northeast Colorado.
Oil producers, betting on a recovery in oil prices since their slump in 2014, have ramped up production in the U.S. shale basins, and the country overtook Russia and Saudi Arabia to become the world’s biggest crude producer with daily output approaching 12 million barrels.
However, fears of a glut in the oil market sent prices down roughly 40 percent in the three months ended Dec. 31.
Anadarko’s sales volume of oil, natural gas and natural gas liquids averaged about 701,000 barrels of oil equivalent per day (boe/d), up from 637,000 boe/d a year earlier.
However, the rise in sales volume was offset by a 19 percent jump in expenses as the company ramped up investments in the Delaware basin of West Texas and DJ basin of northeast Colorado.
The oil and gas producer said adjusted net income rose to $184 million, or 38 cents per share, in the three months ended Dec. 31 from $106 million, or 18 cents per share, a year earlier.
Analysts on average had expected the company to post a profit of 60 cents per share, according to IBES data from Refinitiv.
In the year-earlier quarter, the company had recorded an income-tax benefit of $1.11 billion, largely due to U.S. tax reforms.
Anadarko shares were down 2.2 percent in extended trading on Tuesday.
Reporting by Debroop Roy in Bengaluru; Editing by Sai Sachin Ravikumar and Anil D’Silva