HOUSTON, March 3, 2015 /PRNewswire/ -- Anadarko
Petroleum Corporation (NYSE: APC) today announced its 2015 initial
capital expectations and guidance, concurrent with its 2015
Investor Conference Call.
2015 INVESTOR CONFERENCE CALL HIGHLIGHTS
- Anticipates approximately 5-percent year-over-year oil
sales-volume growth in 2015, on a divestiture-adjusted
basis(1)
- Forecasts improved 2015 liquids product mix of approximately 50
percent, even with the reduction of more than 9 million net barrels
of oil equivalent (BOE) of assumed ethane rejection
- Establishes net resources of more than 1 billion BOE in the
Wolfcamp Shale
- Achieves first oil at the 80,000-barrels-of-oil-per-day Lucius
spar and enhances value through new production-handling
agreement
- Announces more than $700 million
of asset monetizations to date in 2015
"During 2015, we are confident in our ability to leverage our
deep, high-quality portfolio of opportunities, strong balance sheet
and efficient capital allocation to preserve value and maintain
flexibility," said Anadarko Chairman, President and CEO
Al Walker. "Few companies have
accomplished operationally what Anadarko has achieved over the last
five years; although, in the current market, we believe it is
prudent to reduce capital investments and position the company for
the future, rather than to pursue year-over-year growth. As a
result, we've reduced our initial 2015 capital expectations by
approximately 33 percent relative to last year, with plans to
reduce our short-cycle U.S. onshore rig activity by 40 percent and
defer approximately 125 onshore well completions. We have
successfully delivered value during previous challenging
commodity-price cycles, and I believe we have the skills, financial
capacity and portfolio to deliver in this environment. Our focus
continues to be on getting better, not necessarily bigger, while
ensuring we are well positioned to accelerate activity as costs
become more aligned with commodity prices and returns improve."
2015 INITIAL SALES-VOLUME AND CAPITAL EXPECTATIONS
|
Divestiture-Adjusted1 Sales-Volume
Expectations
|
|
2014
|
2015 Productive
Capacity2
|
2015 Initial
Expectations
|
|
|
|
301 MMBOE
|
308 - 314
MMBOE
|
295 - 301
MMBOE
|
|
|
|
(1)
"Divestiture-Adjusted" sales volumes reflect Anadarko's
continuing asset base, giving effect to recent divestitures. For a
reconciliation, see the table on page eight attached to this
release.
|
(2)
"Productive Capacity" is intended to represent what the
portfolio could produce within the current 2015 capital budget
range if the company did not elect to reject approximately 9
million BOE of ethane and choose to defer approximately 4 million
BOE related to reduced U.S. onshore well
completions.
|
|
Initial Capital
Expectations ($5.4 - $5.8 Billion)*
|
|
|
|
|
|
By Cash
Cycle
|
|
By
Area
|
|
|
|
|
|
|
|
Short Cash
Cycle
|
55
|
%
|
|
U.S.
Onshore
|
60
|
%
|
Mid Cash
Cycle
|
30
|
%
|
|
Int'l & Deepwater
Operations
|
22
|
%
|
Long Cash
Cycle
|
12
|
%
|
|
Int'l & Deepwater
Exploration
|
10
|
%
|
Corporate
|
3
|
%
|
|
Midstream &
Other
|
8
|
%
|
|
* Does not include
capital investments by Western Gas Partners, LP (NYSE: WES); all
percentages are approximates.
|
SHORT CASH CYCLE
Anadarko's Wattenberg Horizontal program continues to generate
some of the strongest U.S. onshore returns in the industry,
primarily as a result of the company's consolidated core acreage
position, expansive infrastructure and minerals-interest ownership.
The resilient economics of the Wattenberg field continue to make it
an attractive place to invest in 2015 as it generates better than
30-percent before-tax rates of return at current strip prices.
Additionally, the company plans to allocate capital toward its
Eagleford Shale activity which, at current strip prices, generates
before-tax rates of return of more than 20 percent.
MID CASH CYCLE
Anadarko remains committed to investing in assets that are
expected to generate significant growth in the next one to three
years. Among these assets is the Wolfcamp Shale in the Delaware Basin of West Texas, where the company is applying its
proven integrated midstream approach to build the foundation for
future growth. As a result of the company's delineation activities
to date, Anadarko has established a net resource estimate of more
than 1 billion BOE with more than 5,000 identified drilling
locations in the heart of the Wolfcamp Shale oil play.
Additionally, Anadarko is leveraging its hub-and-spoke philosophy
at its Lucius spar in the deepwater Gulf
of Mexico by reaching a new production-handling agreement
for the nearby third-party Buckskin/Moccasin project, while
continuing to advance development of the Heidelberg and TEN mega
projects in the Gulf of Mexico and
offshore Ghana, respectively,
toward first production in 2016.
LONG CASH CYCLE
In 2015, Anadarko expects to drill nine to 12 deepwater
exploration/appraisal wells focusing on play-opening exploration
opportunities in Colombia,
Kenya and the Gulf of Mexico. Additionally, Anadarko
continues to advance existing discoveries at Shenandoah in the
Gulf of Mexico and Paon offshore
Côte d'Ivoire toward commerciality, while continuing to progress
its Mozambique LNG project.
Four pages of supplemental materials including the company's
2015 initial guidance, updated hedging positions and a
reconciliation of divestiture-adjusted sales volumes are provided
in the tables attached to this release.
Logo - http://photos.prnewswire.com/prnh/20141103/156201LOGO
Anadarko Petroleum Corporation's mission is to deliver a
competitive and sustainable rate of return to shareholders by
exploring for, acquiring and developing oil and natural gas
resources vital to the world's health and welfare. As of year-end
2014, the company had approximately 2.86 billion barrels-equivalent
of proved reserves, making it one of the world's largest
independent exploration and production companies. For more
information about Anadarko and APC Flash Feed updates, please visit
www.anadarko.com.
This news release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Anadarko
believes that its expectations are based on reasonable assumptions.
No assurance, however, can be given that such expectations will
prove to have been correct. A number of factors could cause actual
results to differ materially from the projections, anticipated
results or other expectations expressed in this news release,
including Anadarko's ability to meet financial and operating
guidance; to meet the objectives identified in this news release;
to consummate the transaction described in this news release; to
execute the 2015 capital program; to drill, develop and
commercially operate the drilling prospects identified in this news
release; to achieve production and budget expectations on its mega
projects; and to successfully plan, secure necessary government
approvals, finance, build and operate the necessary structure and
an LNG park. See "Risk Factors" in the company's 2014 Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q and other public
filings and press releases. Anadarko undertakes no obligation to
publicly update or revise any forward-looking statements.
Cautionary Note to Investors: The United States Securities
and Exchange Commission ("SEC") permits oil and gas companies, in
their filings with the SEC, to disclose only proved, probable and
possible reserves that meet the SEC's definitions for such terms.
Anadarko uses certain terms in this news release, such as "net
resources," "net resource estimate," and similar terms that the
SEC's guidelines strictly prohibit Anadarko from including in
filings with the SEC. U.S. investors are urged to consider closely
the disclosure in Anadarko's Form 10-K for the year ended
Dec. 31, 2014, File No. 001-08968,
available from Anadarko at www.anadarko.com or by writing Anadarko
at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive,
The Woodlands, Texas 77380, Attn:
Investor Relations. This form may also be obtained by contacting
the SEC at 1-800-SEC-0330.
ANADARKO CONTACTS
MEDIA:
John
Christiansen, john.christiansen@anadarko.com,
832.636.8736
Stephanie Moreland,
stephanie.moreland@anadarko.com, 832.636.2912
Christina Ramirez,
christina.ramirez@anadarko.com, 832.636.8687
INVESTORS:
John
Colglazier, john.colglazier@anadarko.com, 832.636.2306
Robin Fielder,
robin.fielder@anadarko.com, 832.636.1462
Jeremy Smith,
jeremy.smith@anadarko.com, 832.636.1544
Anadarko Petroleum
Corporation
|
Financial and
Operating External Guidance
|
March 3,
2015
|
|
|
|
|
|
1st-Qtr
|
|
Full-Year
|
|
Guidance
|
|
Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sales
Volumes (MMBOE)
|
79
|
|
—
|
|
82
|
|
|
295
|
|
—
|
|
301
|
|
Total Sales
Volumes (MBOE/d)
|
878
|
|
—
|
|
907
|
|
|
808
|
|
—
|
|
826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil
(MBbl/d)
|
300
|
|
—
|
|
308
|
|
|
285
|
|
—
|
|
293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
206
|
|
—
|
|
210
|
|
|
200
|
|
—
|
|
204
|
|
Algeria
|
66
|
|
—
|
|
68
|
|
|
63
|
|
—
|
|
65
|
|
Ghana
|
28
|
|
—
|
|
30
|
|
|
22
|
|
—
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
(MMcf/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
2,675
|
|
—
|
|
2,725
|
|
|
2,425
|
|
—
|
|
2,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Liquids (MBbl/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
125
|
|
—
|
|
135
|
|
|
109
|
|
—
|
|
117
|
|
Algeria
|
6
|
|
—
|
|
8
|
|
|
4
|
|
—
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ /
Unit
|
|
$ /
Unit
|
Price
Differentials vs. NYMEX (w/o hedges)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil
($/Bbl)
|
(3.00)
|
|
—
|
|
(1.00)
|
|
|
(3.00)
|
|
—
|
|
(1.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
(6.00)
|
|
—
|
|
(1.00)
|
|
|
(6.00)
|
|
—
|
|
(1.00)
|
|
Algeria
|
2.00
|
|
—
|
|
5.00
|
|
|
2.00
|
|
—
|
|
5.00
|
|
Ghana
|
—
|
|
—
|
|
2.00
|
|
|
—
|
|
—
|
|
3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
($/Mcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
(0.50)
|
|
—
|
|
(0.25)
|
|
|
(0.60)
|
|
—
|
|
(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anadarko Petroleum
Corporation
|
Financial and
Operating External Guidance
|
March 3,
2015
|
|
|
|
|
|
1st-Qtr
|
|
Full-Year
|
|
Guidance
|
|
Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
MM
|
|
$
MM
|
Other
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and
Gathering Margin
|
30
|
|
—
|
|
50
|
|
|
140
|
|
—
|
|
160
|
|
Minerals and
Other
|
85
|
|
—
|
|
95
|
|
|
310
|
|
—
|
|
330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ /
BOE
|
|
$ /
BOE
|
Oil & Gas Direct
Operating
|
3.80
|
|
—
|
|
4.00
|
|
|
3.60
|
|
—
|
|
4.00
|
|
Oil & Gas
Transportation/Other
|
3.50
|
|
—
|
|
3.70
|
|
|
3.70
|
|
—
|
|
3.90
|
|
Depreciation,
Depletion and Amortization
|
14.50
|
|
—
|
|
15.00
|
|
|
15.25
|
|
—
|
|
15.75
|
|
Production Taxes (% of
Product Revenue)
|
8.0
|
%
|
—
|
|
9.0
|
%
|
|
8.5
|
%
|
—
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
MM
|
|
$
MM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
Administrative
|
310
|
|
—
|
|
330
|
|
|
1,250
|
|
—
|
|
1,300
|
|
Exploration
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Cash
|
80
|
|
—
|
|
100
|
|
|
550
|
|
—
|
|
600
|
|
Cash
|
75
|
|
—
|
|
95
|
|
|
375
|
|
—
|
|
400
|
|
Interest Expense
(net)
|
205
|
|
—
|
|
215
|
|
|
800
|
|
—
|
|
820
|
|
Other (Income)
Expense
|
40
|
|
—
|
|
50
|
|
|
150
|
|
—
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Algeria (All
current)
|
55
|
%
|
—
|
|
60
|
%
|
|
55
|
%
|
—
|
|
60
|
%
|
Rest of Company
(Expect significant current-tax benefit)
|
10
|
%
|
—
|
|
15
|
%
|
|
25
|
%
|
—
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg. Shares
Outstanding (MM)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
507
|
|
—
|
|
508
|
|
|
508
|
|
—
|
|
509
|
|
Diluted
|
509
|
|
—
|
|
510
|
|
|
510
|
|
—
|
|
511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Investment
(Excluding Western Gas Partners, LP)
|
$
MM
|
|
$
MM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APC Capital
Expenditures
|
1,700
|
|
—
|
|
1,900
|
|
|
5,400
|
|
—
|
|
5,800
|
|
Anadarko Petroleum
Corporation
|
Commodity Hedge
Positions (Excluding Natural Gas Basis)
|
As of March 3,
2015
|
|
|
|
|
|
Volume
|
|
Weighted Average
Price per MMBtu
|
|
(Thousand
|
|
|
|
|
|
|
|
MMBtu/d)
|
|
Floor
Sold
|
|
Floor
Purchased
|
|
Ceiling
Sold
|
Natural
Gas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Way
Collars 2015
|
635
|
$
|
2.75
|
$
|
3.75
|
$
|
4.76
|
|
|
|
|
|
|
|
|
Extendable Fixed
Price -
Financial 2015*
|
170
|
$
|
4.17
|
|
|
|
|
__________________________________________________________________
* Includes an option
for the counterparty to extend the contract term to December 2016
at the same price.
|
|
|
|
|
|
|
|
|
Interest-Rate
Derivatives
|
As of March 3,
2015
|
|
|
|
|
|
|
|
|
|
Instrument
|
Notional
Amt.
|
Start
Date
|
Maturity
|
Rate
Paid
|
Rate
Received
|
|
|
Swap
|
$50
Million
|
Sept. 2016
|
Sept. 2026
|
5.91%
|
3M LIBOR
|
|
|
Swap
|
$1,850
Million
|
Sept. 2016
|
Sept. 2046
|
6.05%
|
3M LIBOR
|
|
|
|
|
|
|
|
|
|
Anadarko Petroleum
Corporation
|
Reconciliation of
Divestiture-Adjusted Sales Volumes
|
|
|
|
|
|
|
|
|
Average Daily
Sales Volumes
|
|
|
|
Crude Oil
&
|
|
|
|
|
|
Natural
Gas
|
|
Condensate
|
|
NGLs
|
|
Total
|
|
MMcf/d
|
|
MBbls/d
|
|
MBbls/d
|
|
MBOE/d
|
Quarter Ended
March 31, 2014
|
|
|
|
|
|
|
|
U.S.
Onshore
|
2,396
|
|
112
|
|
92
|
|
604
|
Deepwater Gulf of
Mexico
|
275
|
|
46
|
|
6
|
|
98
|
International and
Alaska
|
—
|
|
87
|
|
—
|
|
87
|
Divestiture-Adjusted
Sales
|
2,671
|
|
245
|
|
98
|
|
789
|
China, Pinedale/Jonah
and EOR
|
26
|
|
25
|
|
1
|
|
30
|
Total
|
2,697
|
|
270
|
|
99
|
|
819
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2014
|
|
|
|
|
|
|
|
U.S.
Onshore
|
2,443
|
|
134
|
|
113
|
|
655
|
Deepwater Gulf of
Mexico
|
176
|
|
41
|
|
6
|
|
76
|
International and
Alaska
|
—
|
|
101
|
|
1
|
|
102
|
Divestiture-Adjusted
Sales
|
2,619
|
|
276
|
|
120
|
|
833
|
China, Pinedale/Jonah
and EOR
|
1
|
|
15
|
|
—
|
|
15
|
Total
|
2,620
|
|
291
|
|
120
|
|
848
|
|
|
|
|
|
|
|
|
Quarter Ended
Sept. 30, 2014
|
|
|
|
|
|
|
|
U.S.
Onshore
|
2,339
|
|
145
|
|
124
|
|
659
|
Deepwater Gulf of
Mexico
|
154
|
|
46
|
|
5
|
|
77
|
International and
Alaska
|
—
|
|
98
|
|
1
|
|
99
|
Divestiture-Adjusted
Sales
|
2,493
|
|
289
|
|
130
|
|
835
|
China, Pinedale/Jonah
and EOR
|
1
|
|
14
|
|
—
|
|
14
|
Total
|
2,494
|
|
303
|
|
130
|
|
849
|
|
|
|
|
|
|
|
|
Quarter Ended Dec.
31, 2014
|
|
|
|
|
|
|
|
U.S.
Onshore
|
2,369
|
|
151
|
|
113
|
|
659
|
Deepwater Gulf of
Mexico
|
179
|
|
47
|
|
6
|
|
83
|
International and
Alaska
|
—
|
|
88
|
|
10
|
|
98
|
Divestiture-Adjusted
Sales
|
2,548
|
|
286
|
|
129
|
|
840
|
China, Pinedale/Jonah
and EOR
|
1
|
|
14
|
|
—
|
|
14
|
Total
|
2,549
|
|
300
|
|
129
|
|
854
|
|
|
|
|
|
|
|
|
Year Ended
Dec. 31, 2014
|
|
|
|
|
|
|
|
U.S.
Onshore
|
2,386
|
|
136
|
|
111
|
|
644
|
Deepwater Gulf of
Mexico
|
196
|
|
45
|
|
5
|
|
83
|
International and
Alaska
|
—
|
|
94
|
|
3
|
|
97
|
Divestiture-Adjusted
Sales
|
2,582
|
|
275
|
|
119
|
|
824
|
China, Pinedale/Jonah
and EOR
|
7
|
|
17
|
|
—
|
|
19
|
Total
|
2,589
|
|
292
|
|
119
|
|
843
|
Note: EOR
transaction pending
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/anadarko-announces-2015-capital-program-and-guidance-300044447.html
SOURCE Anadarko Petroleum Corporation