Stock Analysis on Net
Stock Analysis on Net

Anadarko Petroleum Corp. (NYSE:APC)

This company has been moved to the archive! The financial data has not been updated since October 31, 2017.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Anadarko Petroleum Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Federal (140) (177) 188 113 45
State (1) (18) 2 42 25
Foreign 378 495 1,574 873 891
Current 237 300 1,764 1,028 961
Federal (1,020) (2,929) (389) 94 (30)
State (148) (145) 27 (9) 115
Foreign (90) (103) 215 52 74
Deferred (1,258) (3,177) (147) 137 159
Income tax expense (benefit) (1,021) (2,877) 1,617 1,165 1,120

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Anadarko Petroleum Corp. current decreased from 2014 to 2015 and from 2015 to 2016.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Anadarko Petroleum Corp. deferred decreased from 2014 to 2015 but then increased from 2015 to 2016 not reaching 2014 level.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Anadarko Petroleum Corp. income tax expense (benefit) decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.

Effective Income Tax Rate (EITR)

Anadarko Petroleum Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
U.S. federal statutory tax rate 35.00% 35.00% 35.00% 35.00% 35.00%
Effective tax rate 27.00% 30.00% 2,994.00% 55.00% 31.00%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Anadarko Petroleum Corp. effective tax rate decreased from 2014 to 2015 and from 2015 to 2016.

Components of Deferred Tax Assets and Liabilities

Anadarko Petroleum Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Foreign and state net operating loss carryforwards 648 586 558 599 477
U.S. foreign tax credit carryforwards 1,834 1,254 166 325 450
Compensation and benefit plans 672 615 701 — —
Mark to market on derivatives 324 441 354 — —
Settlement agreement related to the Tronox Adversary Proceeding — — 590 — —
Other 588 761 760 1,717 2,102
Gross deferred tax assets 4,066 3,657 3,129 2,641 3,029
Valuation allowances on deferred tax assets not expected to be realized (1,755) (1,403) (864) (818) (922)
Net deferred tax assets 2,311 2,254 2,265 1,823 2,107
Oil and gas exploration and development operations (5,054) (5,643) (8,418) (8,213) (8,683)
Midstream and other depreciable properties (870) (1,049) (1,611) (1,586) (1,295)
Mineral operations (550) (492) (412) (410) (408)
Other (147) (470) (351) (499) (152)
Gross deferred tax liabilities (6,621) (7,654) (10,792) (10,708) (10,538)
Deferred taxes (4,310) (5,400) (8,527) (8,885) (8,431)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Anadarko Petroleum Corp. gross deferred tax assets increased from 2014 to 2015 and from 2015 to 2016.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Anadarko Petroleum Corp. net deferred tax assets decreased from 2014 to 2015 but then increased from 2015 to 2016 exceeding 2014 level.
Deferred taxes Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Anadarko Petroleum Corp. deferred taxes increased from 2014 to 2015 and from 2015 to 2016.

Deferred Tax Assets and Liabilities, Classification

Anadarko Petroleum Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Net current deferred tax assets — — 722 360 328
Net long-term deferred tax liabilities 4,324 5,400 9,249 9,245 8,759

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Item Description The company
Net long-term deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Anadarko Petroleum Corp. net long-term deferred tax liabilities decreased from 2014 to 2015 and from 2015 to 2016.

Adjustments to Financial Statements: Removal of Deferred Taxes

Anadarko Petroleum Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Adjustment to Current Assets
Current assets (as reported) 5,266 3,982 11,221 7,108 6,795
Less: Current deferred tax assets, net — — 722 360 328
Current assets (adjusted) 5,266 3,982 10,499 6,748 6,467
Adjustment to Total Assets
Total assets (as reported) 45,564 46,414 61,689 55,781 52,589
Less: Current deferred tax assets, net — — 722 360 328
Total assets (adjusted) 45,564 46,414 60,967 55,421 52,261
Adjustment to Total Liabilities
Total liabilities (as reported) 30,067 30,957 39,371 32,131 30,707
Less: Noncurrent deferred tax liabilities, net 4,324 5,400 9,249 9,245 8,759
Total liabilities (adjusted) 25,743 25,557 30,122 22,886 21,948
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 12,212 12,819 19,725 21,857 20,629
Less: Net deferred tax assets (liabilities) (4,310) (5,400) (8,527) (8,885) (8,431)
Stockholders’ equity (adjusted) 16,522 18,219 28,252 30,742 29,060
Adjustment to Net Income (loss) Attributable To Common Stockholders
Net income (loss) attributable to common stockholders (as reported) (3,071) (6,692) (1,750) 801 2,391
Add: Deferred income tax expense (benefit) (1,258) (3,177) (147) 137 159
Net income (loss) attributable to common stockholders (adjusted) (4,329) (9,869) (1,897) 938 2,550

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Anadarko Petroleum Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Anadarko Petroleum Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Current Ratio
Reported current ratio 1.58 0.95 1.10 1.25 1.70
Adjusted current ratio 1.58 0.95 1.03 1.18 1.62
Net Profit Margin
Reported net profit margin -36.36% -70.55% -10.69% 5.39% 17.97%
Adjusted net profit margin -51.25% -104.04% -11.58% 6.31% 19.16%
Total Asset Turnover
Reported total asset turnover 0.19 0.20 0.27 0.27 0.25
Adjusted total asset turnover 0.19 0.20 0.27 0.27 0.25
Financial Leverage
Reported financial leverage 3.73 3.62 3.13 2.55 2.55
Adjusted financial leverage 2.76 2.55 2.16 1.80 1.80
Return on Equity (ROE)
Reported ROE -25.15% -52.20% -8.87% 3.66% 11.59%
Adjusted ROE -26.20% -54.17% -6.71% 3.05% 8.77%
Return on Assets (ROA)
Reported ROA -6.74% -14.42% -2.84% 1.44% 4.55%
Adjusted ROA -9.50% -21.26% -3.11% 1.69% 4.88%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Anadarko Petroleum Corp. adjusted current ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Anadarko Petroleum Corp. adjusted net profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Anadarko Petroleum Corp. adjusted total asset turnover ratio deteriorated from 2014 to 2015 and from 2015 to 2016.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Anadarko Petroleum Corp. adjusted financial leverage ratio increased from 2014 to 2015 and from 2015 to 2016.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Anadarko Petroleum Corp. adjusted ROE deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Anadarko Petroleum Corp. adjusted ROA deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.

Anadarko Petroleum Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Current assets 5,266 3,982 11,221 7,108 6,795
Current liabilities 3,328 4,181 10,234 5,703 3,994
Liquidity Ratio
Current ratio1 1.58 0.95 1.10 1.25 1.70
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 5,266 3,982 10,499 6,748 6,467
Current liabilities 3,328 4,181 10,234 5,703 3,994
Liquidity Ratio
Adjusted current ratio2 1.58 0.95 1.03 1.18 1.62

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 5,266 ÷ 3,328 = 1.58

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,266 ÷ 3,328 = 1.58

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Anadarko Petroleum Corp. adjusted current ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Sales revenues 8,447 9,486 16,375 14,867 13,307
Profitability Ratio
Net profit margin1 -36.36% -70.55% -10.69% 5.39% 17.97%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common stockholders (4,329) (9,869) (1,897) 938 2,550
Sales revenues 8,447 9,486 16,375 14,867 13,307
Profitability Ratio
Adjusted net profit margin2 -51.25% -104.04% -11.58% 6.31% 19.16%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to common stockholders ÷ Sales revenues
= 100 × -3,071 ÷ 8,447 = -36.36%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to common stockholders ÷ Sales revenues
= 100 × -4,329 ÷ 8,447 = -51.25%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Anadarko Petroleum Corp. adjusted net profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Sales revenues 8,447 9,486 16,375 14,867 13,307
Total assets 45,564 46,414 61,689 55,781 52,589
Activity Ratio
Total asset turnover1 0.19 0.20 0.27 0.27 0.25
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales revenues 8,447 9,486 16,375 14,867 13,307
Adjusted total assets 45,564 46,414 60,967 55,421 52,261
Activity Ratio
Adjusted total asset turnover2 0.19 0.20 0.27 0.27 0.25

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 Total asset turnover = Sales revenues ÷ Total assets
= 8,447 ÷ 45,564 = 0.19

2 Adjusted total asset turnover = Sales revenues ÷ Adjusted total assets
= 8,447 ÷ 45,564 = 0.19

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Anadarko Petroleum Corp. adjusted total asset turnover ratio deteriorated from 2014 to 2015 and from 2015 to 2016.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Total assets 45,564 46,414 61,689 55,781 52,589
Stockholders’ equity 12,212 12,819 19,725 21,857 20,629
Solvency Ratio
Financial leverage1 3.73 3.62 3.13 2.55 2.55
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 45,564 46,414 60,967 55,421 52,261
Adjusted stockholders’ equity 16,522 18,219 28,252 30,742 29,060
Solvency Ratio
Adjusted financial leverage2 2.76 2.55 2.16 1.80 1.80

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 45,564 ÷ 12,212 = 3.73

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 45,564 ÷ 16,522 = 2.76

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Anadarko Petroleum Corp. adjusted financial leverage ratio increased from 2014 to 2015 and from 2015 to 2016.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Stockholders’ equity 12,212 12,819 19,725 21,857 20,629
Profitability Ratio
ROE1 -25.15% -52.20% -8.87% 3.66% 11.59%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common stockholders (4,329) (9,869) (1,897) 938 2,550
Adjusted stockholders’ equity 16,522 18,219 28,252 30,742 29,060
Profitability Ratio
Adjusted ROE2 -26.20% -54.17% -6.71% 3.05% 8.77%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 ROE = 100 × Net income (loss) attributable to common stockholders ÷ Stockholders’ equity
= 100 × -3,071 ÷ 12,212 = -25.15%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to common stockholders ÷ Adjusted stockholders’ equity
= 100 × -4,329 ÷ 16,522 = -26.20%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Anadarko Petroleum Corp. adjusted ROE deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Total assets 45,564 46,414 61,689 55,781 52,589
Profitability Ratio
ROA1 -6.74% -14.42% -2.84% 1.44% 4.55%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common stockholders (4,329) (9,869) (1,897) 938 2,550
Adjusted total assets 45,564 46,414 60,967 55,421 52,261
Profitability Ratio
Adjusted ROA2 -9.50% -21.26% -3.11% 1.69% 4.88%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × -3,071 ÷ 45,564 = -6.74%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to common stockholders ÷ Adjusted total assets
= 100 × -4,329 ÷ 45,564 = -9.50%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Anadarko Petroleum Corp. adjusted ROA deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.