Common-Size Income Statement
Quarterly Data
Anadarko Petroleum Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
The financial performance over the analyzed period is characterized by a transition from relative stability and profitability to significant volatility and consistent net losses, primarily driven by escalating operating costs and substantial non-cash impairment charges.
- Revenue Stream Diversification
- Oil sales remained the primary revenue driver, though their contribution declined from a peak of 69.44% in June 2012 to 60.04% by September 2017. Conversely, Gathering, processing, and marketing sales demonstrated a strong upward trend, increasing from 7.42% in March 2012 to 19.50% in September 2017, suggesting a strategic shift or growth in midstream operations to offset volatility in upstream commodity sales.
- Gross Margin Compression
- Gross profit margins exhibited a downward trajectory, falling from approximately 80% between 2012 and 2013 to 66.48% by the end of the period. This compression is directly attributable to the rise in the cost of sales revenues, which increased from an average of roughly 20% in the early periods to over 33% in late 2017.
- Operating Expense Volatility
- Operating expenses showed extreme fluctuations, particularly regarding Depreciation, depletion, and amortization (DD&A) and exploration costs. DD&A as a percentage of sales rose sharply, peaking at 70.32% in March 2016, compared to approximately 27-32% in 2012. Exploration expenses also displayed significant irregularity, with spikes as high as 48.16% in September 2015, contributing to unstable operating margins.
- Impact of Asset Impairments
- The bottom line was severely impacted by periodic, large-scale impairment charges. Notable instances occurred in March 2015 (-107.66%) and December 2015 (-73.94%), which fundamentally shifted operating income from positive territory to deep deficits. These impairments indicate significant write-downs of asset values during the 2015-2016 period.
- Profitability and Net Income Trends
- Net income transitioned from a high of 63.98% of sales in March 2012 to consistent negative returns starting in 2015. By September 2017, net income attributable to common stockholders stood at -26.78%. This decline was further compounded by an increase in interest expense as a percentage of revenue, which climbed from approximately 5% in 2012 to nearly 9% by late 2017, indicating higher leverage relative to generating capacity.
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