Name: Anadarko Petroleum Corp. (NYSE:APC) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Anadarko Petroleum Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Oil sales	4,668)	5,420)	9,748)	9,178)	8,728)
Natural-gas sales	1,564)	2,007)	3,849)	3,388)	2,444)
Natural-gas liquids sales	921)	833)	1,572)	1,262)	1,224)
Gathering, processing and marketing sales	1,294)	1,226)	1,206)	1,039)	911)
Sales revenues	8,447)	9,486)	16,375)	14,867)	13,307)
Oil and gas operating	(811)	(1,014)	(1,171)	(1,092)	(976)
Oil and gas transportation	(1,002)	(1,117)	(1,116)	(981)	(955)
Gathering, processing and marketing	(1,087)	(1,054)	(1,030)	(869)	(763)
Cost of sales revenues	(2,900)	(3,185)	(3,317)	(2,942)	(2,694)
Gross profit	5,547)	6,301)	13,058)	11,925)	10,613)
Gains (losses) on divestitures and other, net	(578)	(788)	2,095)	(286)	104)
Exploration	(946)	(2,644)	(1,639)	(1,329)	(1,946)
General and administrative	(1,440)	(1,176)	(1,316)	(1,090)	(1,246)
Depreciation, depletion, and amortization	(4,301)	(4,603)	(4,550)	(3,927)	(3,964)
Production, property, and other taxes	(536)	(553)	(1,244)	(1,077)	(1,224)
Impairments	(227)	(5,075)	(836)	(794)	(389)
Other operating expense	(118)	(271)	(165)	(89)	1,779)
Operating income (loss)	(2,599)	(8,809)	5,403)	3,333)	3,727)
Interest expense	(890)	(825)	(772)	(686)	(742)
Loss on early extinguishment of debt	(155)	—)	—)	—)	—)
Gains (losses) on derivatives, net	(286)	99)	(197)	398)	326)
Other income (expense), net	101)	(149)	(20)	(89)	4)
Tronox-related contingent loss	—)	(5)	(4,360)	(850)	250)
Other income (expense)	(1,230)	(880)	(5,349)	(1,227)	(162)
Income (loss) before income taxes	(3,829)	(9,689)	54)	2,106)	3,565)
Income tax (expense) benefit	1,021)	2,877)	(1,617)	(1,165)	(1,120)
Net income (loss)	(2,808)	(6,812)	(1,563)	941)	2,445)
Net (income) loss attributable to noncontrolling interests	(263)	120)	(187)	(140)	(54)
Net income (loss) attributable to common stockholders	(3,071)	(6,692)	(1,750)	801)	2,391)

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).

The financial performance between 2012 and 2016 is characterized by an initial period of growth followed by a severe contraction in both revenue and profitability. Total sales revenues peaked in 2014 at 16,375 million US$ before experiencing a sharp decline to 8,447 million US$ by 2016. This downward trajectory was primarily driven by a significant reduction in oil and natural gas sales, while gathering, processing, and marketing sales remained relatively stable and showed modest growth throughout the period.

Revenue and Gross Profit Analysis: Sales revenues grew consistently from 2012 to 2014, increasing from 13,307 million US$ to 16,375 million US$. However, a precipitous drop occurred in 2015, where revenues fell by approximately 42% to 9,486 million US$. Gross profit followed a similar pattern, peaking at 13,058 million US$ in 2014 before falling to 5,547 million US$ in 2016. The cost of sales revenues decreased slightly during the downturn, yet not sufficiently to offset the collapse in top-line revenue.
Operating Income and Impairment Volatility: Operating income remained positive and reached a peak of 5,403 million US$ in 2014. A dramatic shift occurred in 2015, with operating income plummeting to a loss of 8,809 million US$. This collapse was heavily influenced by a massive impairment charge of 5,075 million US$ recognized in 2015, representing a significant non-cash write-down of assets. While operating losses narrowed to 2,599 million US$ in 2016, the company failed to return to operating profitability.
Non-Operating Impacts and Extraordinary Items: Profitability was further eroded by substantial non-operating expenses, most notably the Tronox-related contingent losses. These losses peaked in 2014 at 4,360 million US$, which effectively neutralized the strong operating income of that year, leaving income before taxes at only 54 million US$. Additionally, interest expenses showed a steady upward trend, rising from 742 million US$ in 2012 to 890 million US$ in 2016, indicating an increasing debt service burden.
Net Income and Common Stockholder Returns: The net income trend demonstrates a transition from profitability to significant losses. Net income attributable to common stockholders fell from 2,391 million US$ in 2012 to a deep loss of 6,692 million US$ in 2015. Although the loss improved to 3,071 million US$ in 2016, the company ended the five-year period in a weakened financial position compared to its 2012 status. Tax benefits provided some mitigation during the loss-making years of 2015 and 2016.

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