Anadarko Petroleum Corp. (NYSE:APC)

The quarterly financial data reveals several noteworthy trends in sales, costs, and profitability over the observed periods.

Sales Revenues

Oil sales generally exhibited fluctuation with a peak around mid-2014, followed by a significant decline in 2015 and partial recovery beginning in late 2016. Natural-gas sales showed an initial upward trend until early 2014, then followed a declining pattern through 2016 before stabilizing somewhat in 2017. Natural-gas liquids sales remained relatively stable with minor fluctuations but showed a gradual decline through 2015 and early 2016 before resuming increase into 2017. Gathering, processing, and marketing sales steadily increased throughout most periods, showing particular strength toward the end of the data range. Overall sales revenues mirrored these patterns, rising through 2013 and into 2014, then decreasing sharply through 2015 and early 2016, before recovering modestly in 2017.

Cost of Sales Revenues and Gross Profit

Costs associated with oil and gas operations, transportation, and gathering increased notably towards the end of 2013 and early 2014, contributing to increased total cost of sales revenues during the peak sales period. Cost of sales revenues showed an overall increase through 2014, followed by a reduction in 2015 and 2016 that coincided with lower sales volumes. Gross profit followed a similar pattern, peaking in early 2014, then declining substantially into 2015 and early 2016, with partial recovery evident in 2017, reflecting the sales and cost dynamics.

Operating Expenses

Exploration costs displayed considerable volatility, with extreme negative values notably in mid-2012, late 2013, and during 2015 and 2017, indicating episodic high expense or write-offs. General and administrative expenses remained relatively consistent throughout the periods but displayed slight increases in some quarters, particularly in the later years. Depreciation, depletion, and amortization expenses increased gradually through the years, peaking around 2014, and then slightly declining but remaining substantial. Production, property, and other taxes fluctuated but showed a generally declining trend after 2013. Impairments had sporadic but significant negative impacts, notably during late 2014 and 2015, indicating asset value reductions. Other operating expenses were irregular and sometimes showed positive values, hinting at adjustments or recoveries in operating costs.

Operating Income and Other Income/(Expense)

Operating income was highly volatile. There were strong positive results in early 2012 and most of 2013 and early 2014, including a significant spike in the first quarter of 2014. However, it turned negative during various quarters, especially during 2014 and 2015, impacted by large impairments and other expenses. Interest expenses remained relatively stable but showed a minor upward trend toward later periods. Gains and losses on derivatives were erratic, with some quarters showing substantial gains and others losses, contributing to income volatility. The company also faced unusual large losses related to contingent liabilities, significantly affecting income around 2013 and 2014. Other income and expense were inconsistent, contributing further to unpredictability in overall earnings.

Net Income

Net income exhibited a strong positive start in early 2012 but deteriorated substantially through 2014 and 2015, with several quarters showing negative income, including severe losses in 2014. A partial recovery is observable starting in late 2016 into 2017, although profit levels remained below earlier peaks. Net income attributable to common stockholders followed the overall trend with significant swings and deep negative results in intermediary years.

In summary, financial performance showed considerable variability influenced by fluctuating commodity sales, particularly oil and gas, fluctuating operational costs, and episodic impairments and extraordinary items. The decline in oil sales revenue and associated profits post-2014 reflects broader market conditions, while cost management and occasional gains partly mitigated losses. However, ongoing volatility in operating income and net earnings suggests sensitivity to market and operational factors.