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. In addition to higher natural gas prices in the U.S., we expec...