Anadarko posts quarterly loss, expects to cut capex in half

HOUSTON (Reuters) - Anadarko Petroleum Corp. on Monday reported a larger quarterly loss but smaller than Wall Street expected and the U.S. oil company said it expects to slash capital spending about 50% this year to conserve cash.

Oil prices have tumbled about 70% from 2014 highs of over $100/bbl, a situation that has prompted oil producers to cut spending on new wells.

Last year, spending fell between 20% and 50%, but oil at $30/bbl is pushing operators to make even deeper cuts.

"We believe the accomplishments achieved in 2015, coupled with the steps we are taking in 2016 to materially reduce our capital spending, leverage our competitive advantages and protect our balance sheet, will serve our shareholders well," Al Walker, Anadarko's chief executive said in a news release.

Anadarko expects to spend $2.8 billion, a figure that is about 50% lower than last year and nearly 70% lower than capital expenditures in 2014.

Anadarko, based in Houston, reported a net loss of $1.25 billion, or $2.45 per share, compared with a loss of $395 million, or 78 cents per share, in the year-ago quarter.

Excluding one-time items that included a big write-down of some oil and gas properties, Anadarko had a loss of 57 cents per share. Analysts on average had expected a loss of $1.08 per share.

In the fourth quarter, Anadarko's oil and gas sales volumes averaged 779,000 boed, down nearly 9% from a year-ago.

Shares of Anadarko rose 4% to $39.10 in after-hours trading.