Anadarko Petroleum Corp. (NYSE:APC)

Sales Revenues

Sales revenues demonstrated an initial upward trend from 2005 to 2008, increasing from $7.1 billion to a peak of $14.64 billion. This was followed by a significant decline in 2009 to $8.21 billion. A recovery phase ensued, with revenues rising again to $16.38 billion by 2014. The final years, 2015 and 2016, reflected a downturn, with revenues decreasing sharply to $9.49 billion and $8.45 billion, respectively.

Operating Income (Loss)

Operating income exhibited volatility across the reported periods. Starting from $4.02 billion in 2005, it peaked at $7.35 billion in 2007. A steep reduction occurred in 2009, plunging to $377 million. A modest recovery took place between 2010 and 2014, with operating income fluctuating around the mid-range of billions, reaching $5.4 billion in 2014. However, the operating performance took a downturn in the later years, showing losses of $8.81 billion in 2015 and $2.6 billion in 2016, indicating substantial operational challenges.

Net Income (Loss)

Net income reflected substantial variability and was generally positive in the earlier years, starting at $2.47 billion in 2005 and rising to $4.85 billion in 2006. Thereafter, fluctuations occurred, with net income falling to a loss of $135 million in 2009. Periodic recoveries were observed, such as in 2012 with a positive income of $2.39 billion. Nonetheless, later periods were characterized by significant losses, notably net losses of $6.69 billion in 2015 and $3.07 billion in 2016, highlighting financial strain in recent years.

Overall Trends and Insights

The data reveals an overall cyclical pattern in revenues and profitability, influenced likely by external economic conditions and internal operational factors. The early period showed growth and profitability, followed by volatility and sharp declines around 2009, with some recovery in the early 2010s. The last two years display marked financial distress, with severe losses in both operating income and net income despite moderate sales revenues. This pattern suggests challenges in cost control or market conditions impacting profitability despite top-line generation. Stability of earnings appears weak, with a necessity for strategic adjustments to restore financial health.

The data indicates a significant increase in current assets from 2005 to 2010, growing from 2,916 million US dollars to 6,675 million US dollars. This upward trend continues steadily, peaking at 11,221 million US dollars in 2014 before experiencing a sharp decline to 3,982 million US dollars in 2015. A moderate recovery is visible in 2016 with current assets rising to 5,266 million US dollars.

Total assets exhibit more volatility over the same period. There is a dramatic surge from 22,588 million US dollars in 2005 to 58,844 million US dollars in 2006, followed by a decrease in 2007 to 48,481 million US dollars. Between 2008 and 2014, total assets fluctuate but generally maintain an upward momentum, reaching a high of 61,689 million US dollars in 2014. However, this is succeeded by a sharp decline in 2015 to 46,414 million US dollars, which continues slightly downwards to 45,564 million US dollars in 2016.

Overall, both current assets and total assets demonstrate growth trends with noticeable surges around the mid-2000s and early 2010s, followed by significant contractions in the last two years of the data provided. The reductions in asset values post-2014 suggest either divestitures, impairments, or market challenges impacting the asset base during that period.

Current liabilities

Current liabilities exhibit significant volatility over the analyzed period. The value surged sharply from 2,403 million in 2005 to a peak of 16,758 million in 2006, indicating a substantial short-term obligation increase. Subsequently, the figure declined to a range between approximately 3,300 million and 10,200 million from 2007 to 2016, with some fluctuations. The highest values after 2006 occurred in 2014 (10,234 million) and 2013 (5,703 million), while the lowest value was observed in 2005. This pattern suggests episodic spikes in short-term liabilities followed by partial normalization.

Long-term debt, including current portion

Long-term debt displayed an overall upward trend with moderate fluctuations. Starting at 3,677 million in 2005, the debt rose substantially to 22,991 million in 2006, then decreased to a bottom of 10,600 million in 2008. Thereafter, the debt levels generally increased again, reaching a peak of 15,751 million in 2015 before slightly declining to 15,323 million in 2016. This trend indicates periods of increased borrowing possibly for capital expenditures or refinancing, with a tendency to maintain elevated debt levels after 2008.

Stockholders’ equity

Stockholders’ equity showed marked growth from 527 million in 2005 to a high of 21,857 million in 2013. Between 2005 and 2010, equity increased steadily, reflecting retained earnings or capital injections. After peaking in 2013, equity declined noticeably to 12,819 million in 2015 and further to 12,212 million in 2016. This decline may suggest asset write-downs, dividend payments, or losses impacting retained earnings. Overall, the period reflects substantial equity accumulation until around 2013, followed by a contraction in the latter years.

Summary of trends

The financial position reflects volatile short-term liabilities with a major spike early in the period, a generally rising and then stabilized high long-term debt level, and a strong equity growth phase followed by a contraction in recent years. These patterns suggest periods of aggressive financing and capital management, potentially aligned with investment cycles and market conditions influencing the company’s financial structure.

Operating Activities Cash Flow

The net cash provided by operating activities demonstrates considerable volatility throughout the analyzed periods. Starting at 4,146 million USD in 2005, there is a notable increase to 5,034 million USD in 2006, followed by a sharp decline to 2,766 million USD in 2007. A peak occurs in 2008 at 6,447 million USD, before a drop in 2009 to 3,926 million USD. From 2010 onwards, the figures fluctuate, reaching a high of 8,888 million USD in 2013 and declining thereafter. The most significant downturn is observed in 2015, where the figure turns negative at -1,877 million USD, indicating cash outflow from operations, before recovering to 3,000 million USD in 2016. The trend underscores fluctuations in operational efficiency or changes in working capital requirements over time.

Investing Activities Cash Flow

Net cash flow from investing activities presents a predominantly negative trend, consistent with capital expenditure activities common in the sector. Starting with an outflow of -3,253 million USD in 2005 and a substantial negative spike to -24,570 million USD in 2006, there is an isolated positive inflow of 3,844 million USD in 2007. Subsequent years return to negative cash flows, with values fluctuating between -2,528 million USD and -8,216 million USD, reflecting ongoing investments. The downward pattern tends to moderate in 2015 and 2016, with outflows reducing to -4,771 million USD and -2,762 million USD respectively, which might indicate a scaling down of investment activities or asset sales.

Financing Activities Cash Flow

Cash flows from financing activities are erratic, exhibiting both significant inflows and outflows. The period begins with a cash outflow of -1,031 million USD in 2005, moving to a substantial inflow peak of 15,835 million USD in 2006. This is followed by considerable outflows in 2007 and 2008 (-5,921 and -2,822 million USD respectively). Recovery phases occur sporadically, with inflows noted in 2009, 2011, 2013, 2014, and 2016, oscillating between moderate to low values. There is no clear long-term upward or downward trend, suggesting shifting financing strategies possibly responsive to market conditions, debt repayments, equity issuances, or dividend policies.

Overall Observations

The interplay among operational, investing, and financing cash flows indicates a company engaged in active capital management with variable performance in operational efficiency and significant investment commitments. The pronounced volatility, particularly within operating and financing cash flows, implies exposure to cyclical factors or strategic shifts impacting liquidity and funding. The cash flow patterns in the later years reflect a period of possible restructuring or adjustment to market dynamics, especially given the operational cash flow negative figure in 2015 and its subsequent recovery.

Basic and Diluted Earnings per Share (EPS)

The earnings per share show considerable volatility over the observed period. Both basic and diluted EPS started at moderate positive values in 2005 and peaked in 2006, indicating the highest profitability during that year. Afterward, EPS generally declined despite some intermittent recoveries, notably in 2007, 2008, and 2012. However, negative EPS values prevail starting in 2009, with significant losses reported particularly in 2011, 2014, and 2015, reflecting challenging financial performance. The most severe negative EPS occurred in 2015, substantially below prior years, suggesting a period of considerable financial distress. EPS values remain negative towards the latter years, showing no sustained recovery by 2016.

Dividend per Share

The dividend per share remained stable at $0.36 from 2005 until 2012, demonstrating consistent dividend policy despite fluctuating earnings. From 2013 onward, dividends increased progressively, peaking at $1.08 in 2014. This rise coincided with a period just before the notable losses in EPS, implying an aggressive dividend distribution strategy. However, dividends dropped sharply to $0.20 by 2016, reflecting a reduction likely influenced by the deteriorating earnings and the need to conserve cash during financial difficulties.