UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Earliest Event Reported: July 28, 2015
ANADARKO PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
|
| | | | |
Delaware | | 1-8968 | | 76-0146568 |
(State or Other Jurisdiction of Incorporation) | | (Commission File Number) | | (IRS Employer Identification No.) |
1201 Lake Robbins Drive
The Woodlands, Texas 77380-1046
(Address of principal executive offices)
Registrant's telephone number, including area code (832) 636-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
The information in this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On July 28, 2015, Anadarko Petroleum Corporation (Anadarko) announced second-quarter 2015 financial and operating results. The press release is included in this report as Exhibit 99 and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On July 28, 2015, Anadarko provided guidance for the remainder of 2015. This information is contained in the press release included in this report as Exhibit 99.
Item 9.01 Financial Statements and Exhibits.
|
| | |
(d) |
| Exhibits. |
99 |
| Anadarko Press Release dated July 28, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
| | | |
| | ANADARKO PETROLEUM CORPORATION |
| | (Registrant) | |
|
|
July 28, 2015 | By: | /s/ CHRIS CHAMPION |
| | Chris Champion |
| | Vice President, Chief Accounting Officer and Controller |
EXHIBIT INDEX
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| | |
Exhibit No. | | Description |
| | |
99 | | Anadarko Press Release dated July 28, 2015. |
NEWS
ANADARKO ANNOUNCES SECOND-QUARTER 2015 RESULTS
Increases Midpoint of Full-Year Oil Sales-Volume Guidance by 15,000 Barrels per Day
HOUSTON, July 28, 2015 – Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the second quarter of 2015, including net income attributable to common stockholders of $61 million, or $0.12 per share (diluted). These results include certain items typically excluded by the investment community in published estimates, which in the aggregate increased net income by $57 million or $0.11 per share (diluted).(1) Net cash flow from operating activities in the second quarter of 2015 was $1.243 billion, and discretionary cash flow from operations totaled $1.373 billion.(2)
HIGHLIGHTS
| |
• | Increased year-over-year oil sales volumes by 42,000 barrels per day, adjusted for divestitures(3) |
| |
• | Achieved large-scale project milestones in the Gulf of Mexico and Mozambique |
| |
• | Announced deepwater exploration success in a frontier basin offshore Colombia |
| |
• | Announced more than $1.7 billion of monetizations year to date |
“During the second quarter, we delivered more than 18,000 barrels per day of higher-margin oil sales volumes above our guidance, driven by continued improvements in productivity and ongoing operating efficiencies,” said Anadarko Chairman, President and CEO Al Walker. “The operating improvements achieved to date are contributing to an expected full-year increase over 2014 of 13 percent, or about 35,000 barrels of oil per day, enhancing our relative cash margins and enabling us to drill more than 100 additional wells this year – all while staying within our capital guidance. In addition, we’ve created significant option value through our exploration success offshore Colombia and in the Gulf of Mexico, and accelerated value through active portfolio management. We believe these actions and differentiating achievements, the depth and strength of our portfolio, and the commitment of our employees, position us well for continued success.”
OPERATIONS SUMMARY
During the second quarter, Anadarko’s sales volumes of oil, natural gas and natural gas liquids (NGLs) totaled 77 million barrels of oil equivalent (BOE), or an average of 846,000 BOE per day. The company also updated its full-year 2015 sales-volume guidance to a range of 298 million to 302 million BOE, which excludes 2015 sales volumes associated with the divestitures of EOR and Bossier.
In the U.S. onshore, Anadarko increased oil sales volumes by approximately 30 percent year over year on a divestiture-adjusted basis,(3) driven by the Wattenberg field, Eagleford Shale and Delaware Basin, while natural-gas sales volumes were lower, reflecting third-party infrastructure downtime and curtailments, as well as the company’s storage program.
During the quarter, Anadarko achieved a significant production milestone, averaging 101,000 barrels of oil per day (BOPD) in the Wattenberg field in Colorado, while also achieving exceptional efficiency improvements. The company has realized a significant reduction in drilling cost per foot over a two-year period and is currently drilling new Wattenberg horizontal wells for approximately $1 million per well. During the second quarter, Anadarko also achieved startup at its 300-million-cubic-feet-per-day (MMcf/d) Lancaster II cryogenic expansion, providing additional growth capacity for the Wattenberg field.
Anadarko expects to achieve its objective of drilling more than 200 wells in the Eagleford Shale this year with fewer rigs than initially anticipated. Efficiency gains are enabling Anadarko to re-allocate rigs from the Eagleford Shale to the Wolfcamp Shale oil play in the Delaware Basin of West Texas. During the quarter, the Delaware Basin increased year-over-year oil sales volumes by almost 30 percent and achieved startup at the 200-MMcf/d Mi Vida cryogenic gas plant.
In the deepwater Gulf of Mexico, Anadarko’s Lucius facility achieved name-plate capacity of 80,000 BOPD with production stabilizing during the quarter. The company also continued to advance the 80,000-BOPD Heidelberg spar on schedule with the successful installation of the hull and completion of the topsides.
The Mozambique liquefied natural gas (LNG) project also continues to advance with the selection of a consortium consisting of CB&I, Chiyoda Corporation and Saipem (CCS JV) for the initial development of the onshore LNG park. The scope of the work includes two 6-million-tonnes-per-annum (MMTPA) LNG trains, which is a 20-percent increase in the original capacity expectations with no change to estimated costs.
Anadarko continues an active deepwater exploration program. The company’s first well, Kronos, in the frontier basin offshore Colombia, encountered 130 to 230 net feet of natural gas pay in the upper objective, proving the presence of a working petroleum system and validating the company’s geologic and seismic interpretations. Drilling is ongoing toward the deeper objective before mobilizing the rig to drill the Calasu prospect, which is also located in the 4.5-million-acre Grand Fuerte Block, approximately 100 miles northeast of the Kronos well. In the Gulf of Mexico, Anadarko spud its third appraisal well in the Shenandoah field and plans to commence drilling on an appraisal well to the previously announced Yeti discovery, which encountered more than 270 net feet of oil pay.
FINANCIAL SUMMARY
Anadarko ended the second quarter with approximately $2.2 billion of cash on hand. Year to date, Anadarko has reached agreements to divest more than $1.1 billion in assets, including the recently announced $440 million divestiture of its Bossier natural gas field and associated midstream infrastructure. In addition, Anadarko accelerated more than $575 million of value from the secondary sale of Western Gas Equity Partners, LP (NYSE: WGP) units and a WGP-linked tangible equity unit offering.
OPERATIONS REPORT
For details on Anadarko’s operating areas and exploration program, including tables illustrating same-store sales information,(3) please refer to the comprehensive report on second-quarter 2015 activity. The report is available at www.anadarko.com.
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Wednesday, July 29, 2015, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company’s outlook for the remainder of 2015. The dial-in number is 866.777.2509 in the United States or 412.317.5413 internationally. Participants can register for the conference at
http://dpregister.com/10068168. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will be available on the website for approximately 30 days following the conference call.
FINANCIAL DATA
Nine pages of summary financial data follow, including current hedge positions and updated financial and production guidance.
(1) See the accompanying table for details of certain items affecting comparability.
(2) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.
(3) See the accompanying table for a reconciliation of “divestiture-adjusted” or “same-store” sales volumes, which are intended to present performance of Anadarko’s continuing asset base, giving effect to recent divestitures.
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 realize its expectations regarding performance in this challenging economic environment and meet financial and operating guidance, timely complete and commercially operate the projects and drilling prospects identified in this news release, consummate the transaction described in this release, enter into a definitive agreement with CCS JV, successfully plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park, and achieve production and budget expectations. 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.
# # #
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
Certain Items Affecting Comparability
|
| | | | | | | | | | | | |
| | Quarter Ended June 30, 2015 |
| | Before | | After | | Per Share |
millions except per-share amounts | | Tax | | Tax | | (diluted) |
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* | | $ | 229 |
| | $ | 145 |
| | $ | 0.28 |
|
Gains (losses) on divestitures, net | | (91 | ) | | (77 | ) | | (0.15 | ) |
Impairments | | (30 | ) | | (20 | ) | | (0.04 | ) |
Change in uncertain tax positions (FIN 48) | | — |
| | 9 |
| | 0.02 |
|
| | $ | 108 |
| | $ | 57 |
| | $ | 0.11 |
|
| |
* | Includes $(83) million related to commodity derivatives and $312 million related to interest-rate derivatives. |
|
| | | | | | | | | | | | |
| | Quarter Ended June 30, 2014 |
| | Before | | After | | Per Share |
millions except per-share amounts | | Tax | | Tax | | (diluted) |
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* | | $ | (237 | ) | | $ | (151 | ) | | $ | (0.30 | ) |
Gains (losses) on divestitures, net | | 9 |
| | 8 |
| | 0.02 |
|
Impairments | | (117 | ) | | (75 | ) | | (0.15 | ) |
Change in uncertain tax positions (FIN 48) | | — |
| | (115 | ) | | (0.23 | ) |
Contingent Clean Water Act penalty accrual | | (90 | ) | | (90 | ) | | (0.17 | ) |
Interest expense related to Tronox settlement | | (19 | ) | | (19 | ) | | (0.04 | ) |
| | $ | (454 | ) | | $ | (442 | ) | | $ | (0.87 | ) |
| |
* | Includes $(76) million related to commodity derivatives, $(159) million related to interest-rate derivatives, and $(2) million related to gathering, processing, and marketing sales. |
Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP), cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), as well as free cash flow (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses adjusted net income (loss) to evaluate the Company’s operational trends and performance.
|
| | | | | | | | | | | | | | | |
| Quarter Ended | | Quarter Ended |
| June 30, 2015 | | June 30, 2014 |
| After | | Per Share | | After | | Per Share |
millions except per-share amounts | Tax | | (diluted) | | Tax | | (diluted) |
Net income (loss) attributable to common stockholders | $ | 61 |
| | $ | 0.12 |
| | $ | 227 |
| | $ | 0.45 |
|
Less certain items affecting comparability | 57 |
| | 0.11 |
| | (442 | ) | | (0.87 | ) |
Adjusted net income (loss) | $ | 4 |
| | $ | 0.01 |
| | $ | 669 |
| | $ | 1.32 |
|
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes certain fluctuations in assets and liabilities and current taxes related to certain items affecting comparability. Management uses free cash flow to demonstrate the Company’s ability to internally fund capital expenditures and to service or incur additional debt.
|
| | | | | | | | | | | | | | | |
| Quarter Ended | | Six Months Ended |
| June 30, | | June 30, |
millions | 2015 | | 2014 | | 2015 | | 2014 |
Net cash provided by (used in) operating activities | $ | 1,243 |
| | $ | 2,462 |
| | $ | (3,261 | ) | | $ | 4,191 |
|
Add back | | | | | | | |
Increase (decrease) in accounts receivable | 462 |
| | (83 | ) | | 105 |
| | 183 |
|
(Increase) decrease in accounts payable and accrued expenses | (84 | ) | | (84 | ) | | 199 |
| | (21 | ) |
Other items—net | (339 | ) | | 82 |
| | 269 |
| | 27 |
|
Tronox settlement payment | — |
| | — |
| | 5,215 |
| | — |
|
Certain nonoperating and other excluded items | 3 |
| | 1 |
| | 25 |
| | 1 |
|
Current taxes related to asset monetizations | 88 |
| | 56 |
| | 316 |
| | 576 |
|
Discretionary cash flow from operations | $ | 1,373 |
| | $ | 2,434 |
| | $ | 2,868 |
| | $ | 4,957 |
|
|
| | | | | | | | | | | | | | | |
| Quarter Ended | | Six Months Ended |
| June 30, | | June 30, |
millions | 2015 | | 2014 | | 2015 | | 2014 |
Discretionary cash flow from operations | $ | 1,373 |
| | $ | 2,434 |
| | $ | 2,868 |
| | $ | 4,957 |
|
Less capital expenditures* | 1,401 |
| | 2,402 |
| | 3,223 |
| | 4,970 |
|
Free cash flow** | $ | (28 | ) | | $ | 32 |
| | $ | (355 | ) | | $ | (13 | ) |
| |
* | Includes Western Gas Partners, LP (WES) capital expenditures of $122 million for the quarter ended June 30, 2015, and $173 million for the quarter ended June 30, 2014, $278 million for the six months ended June 30, 2015, and $343 million for the six months ended June 30, 2014. |
| |
** | Free cash flow for the six months ended June 30, 2015, includes a $595 million current tax benefit associated with the Tronox settlement. |
Presented below is a reconciliation of total debt (GAAP) to net debt (non-GAAP). Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
|
| | | | | | | | | | | | | |
| | | June 30, 2015 |
| | | | | | | Anadarko |
| | | Anadarko | | WGP* | | excluding |
millions | | | Consolidated | | Consolidated | | WGP |
Total debt | | | $ | 16,058 |
| | $ | 2,677 |
| | $ | 13,381 |
|
Less cash and cash equivalents | | | 2,173 |
| | 89 |
| | 2,084 |
|
Net debt | | | $ | 13,885 |
| | $ | 2,588 |
| | $ | 11,297 |
|
| | | | | | | |
| | | | | | | Anadarko |
| | | | | Anadarko | | excluding |
millions | | | | | Consolidated | | WGP |
Net debt | | | | | $ | 13,885 |
| | $ | 11,297 |
|
Total equity | | | | | 19,359 |
| | 16,389 |
|
Adjusted capitalization | | | | | $ | 33,244 |
| | $ | 27,686 |
|
|
| | | | | | | | | |
Net debt to adjusted capitalization ratio | | | | | 42 | % | | 41 | % |
| |
* | Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko and WES is a consolidated subsidiary of WGP. |
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| Quarter Ended | | Six Months Ended |
Summary Financial Information | June 30, | | June 30, |
millions except per-share amounts | 2015 | | 2014 | | 2015 | | 2014 |
Consolidated Statements of Income | | | | | | | |
Revenues and Other | | | | | | | |
Natural-gas sales | $ | 487 |
| | $ | 991 |
| | $ | 1,128 |
| | $ | 2,208 |
|
Oil and condensate sales | 1,616 |
| | 2,705 |
| | 3,035 |
| | 5,129 |
|
Natural-gas liquids sales | 229 |
| | 411 |
| | 461 |
| | 797 |
|
Gathering, processing, and marketing sales | 305 |
| | 278 |
| | 598 |
| | 589 |
|
Gains (losses) on divestitures and other, net | (1 | ) | | 54 |
| | (265 | ) | | 1,560 |
|
Total | 2,636 |
| | 4,439 |
| | 4,957 |
| | 10,283 |
|
Costs and Expenses | | | | | | | |
Oil and gas operating | 226 |
| | 273 |
| | 522 |
| | 586 |
|
Oil and gas transportation and other | 289 |
| | 281 |
| | 650 |
| | 547 |
|
Exploration | 103 |
| | 502 |
| | 1,186 |
| | 801 |
|
Gathering, processing, and marketing | 255 |
| | 250 |
| | 509 |
| | 502 |
|
General and administrative | 278 |
| | 305 |
| | 588 |
| | 603 |
|
Depreciation, depletion, and amortization | 1,214 |
| | 1,048 |
| | 2,470 |
| | 2,172 |
|
Other taxes | 151 |
| | 361 |
| | 333 |
| | 675 |
|
Impairments | 30 |
| | 117 |
| | 2,813 |
| | 120 |
|
Deepwater Horizon settlement and related costs | — |
| | 93 |
| | 4 |
| | 93 |
|
Total | 2,546 |
| | 3,230 |
| | 9,075 |
| | 6,099 |
|
Operating Income (Loss) | 90 |
| | 1,209 |
| | (4,118 | ) | | 4,184 |
|
Other (Income) Expense | | | | | | | |
Interest expense | 201 |
| | 186 |
| | 417 |
| | 369 |
|
(Gains) losses on derivatives, net | (311 | ) | | 323 |
| | (159 | ) | | 776 |
|
Other (income) expense, net | 15 |
| | (13 | ) | | 62 |
| | (12 | ) |
Tronox-related contingent loss | — |
| | 19 |
| | 5 |
| | 4,319 |
|
Total | (95 | ) | | 515 |
| | 325 |
| | 5,452 |
|
Income (Loss) Before Income Taxes | 185 |
| | 694 |
| | (4,443 | ) | | (1,268 | ) |
Income Tax Expense (Benefit) | 77 |
| | 428 |
| | (1,315 | ) | | 1,092 |
|
Net Income (Loss) | 108 |
| | 266 |
| | (3,128 | ) | | (2,360 | ) |
Net Income (Loss) Attributable to Noncontrolling Interests | 47 |
| | 39 |
| | 79 |
| | 82 |
|
Net Income (Loss) Attributable to Common Stockholders | $ | 61 |
| | $ | 227 |
| | $ | (3,207 | ) | | $ | (2,442 | ) |
Per Common Share | | | | | | | |
Net income (loss) attributable to common stockholders—basic | $ | 0.12 |
| | $ | 0.45 |
| | $ | (6.32 | ) | | $ | (4.84 | ) |
Net income (loss) attributable to common stockholders—diluted | $ | 0.12 |
| | $ | 0.45 |
| | $ | (6.32 | ) | | $ | (4.84 | ) |
Average Number of Common Shares Outstanding—Basic | 508 |
| | 505 |
| | 507 |
| | 505 |
|
Average Number of Common Shares Outstanding—Diluted | 509 |
| | 507 |
| | 507 |
| | 505 |
|
| | | | | | | |
Exploration Expense | | | | | | | |
Dry hole expense | $ | 13 |
| | $ | 302 |
| | $ | 42 |
| | $ | 423 |
|
Impairments of unproved properties | 18 |
| | 109 |
| | 998 |
| | 186 |
|
Geological and geophysical expense | 16 |
| | 37 |
| | 38 |
| | 80 |
|
Exploration overhead and other | 56 |
| | 54 |
| | 108 |
| | 112 |
|
Total | $ | 103 |
| | $ | 502 |
| | $ | 1,186 |
| | $ | 801 |
|
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| Quarter Ended | | Six Months Ended |
Summary Financial Information | June 30, | | June 30, |
millions | 2015 | | 2014 | | 2015 | | 2014 |
Cash Flows from Operating Activities | | | | | | | |
Net income (loss) | $ | 108 |
| | $ | 266 |
| | $ | (3,128 | ) | | $ | (2,360 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | | | | | | | |
Depreciation, depletion, and amortization | 1,214 |
| | 1,048 |
| | 2,470 |
| | 2,172 |
|
Deferred income taxes | 11 |
| | 142 |
| | (1,187 | ) | | 188 |
|
Dry hole expense and impairments of unproved properties | 31 |
| | 411 |
| | 1,040 |
| | 609 |
|
Impairments | 30 |
| | 117 |
| | 2,813 |
| | 120 |
|
(Gains) losses on divestitures, net | 91 |
| | (9 | ) | | 425 |
| | (1,468 | ) |
Total (gains) losses on derivatives, net | (310 | ) | | 325 |
| | (158 | ) | | 786 |
|
Operating portion of net cash received (paid) in settlement of derivative instruments | 81 |
| | (88 | ) | | 172 |
| | (186 | ) |
Other | 29 |
| | 54 |
| | 74 |
| | 108 |
|
Changes in assets and liabilities | | | | | | | |
Deepwater Horizon settlement and related costs | (3 | ) | | 92 |
| | 1 |
| | 92 |
|
Tronox-related contingent liability | — |
| | 19 |
| | (5,210 | ) | | 4,319 |
|
(Increase) decrease in accounts receivable | (462 | ) | | 83 |
| | (105 | ) | | (183 | ) |
Increase (decrease) in accounts payable and accrued expenses | 84 |
| | 84 |
| | (199 | ) | | 21 |
|
Other items—net | 339 |
| | (82 | ) | | (269 | ) | | (27 | ) |
Net Cash Provided by (Used in) Operating Activities | $ | 1,243 |
| | $ | 2,462 |
| | $ | (3,261 | ) | | $ | 4,191 |
|
| | | | | | | |
Capital Expenditures | $ | 1,401 |
| | $ | 2,402 |
| | $ | 3,223 |
| | $ | 4,970 |
|
|
| | | | | | | | | | | |
| | | | | June 30, | | December 31, |
millions | | | | | 2015 | | 2014 |
Condensed Balance Sheets | | | | | | | |
Cash and cash equivalents | | | | | $ | 2,173 |
| | $ | 7,369 |
|
Accounts receivable, net of allowance | | | | | 2,602 |
| | 2,527 |
|
Other current assets | | | | | 635 |
| | 1,325 |
|
Net properties and equipment | | | | | 37,820 |
| | 41,589 |
|
Other assets | | | | | 2,474 |
| | 2,310 |
|
Goodwill and other intangible assets | | | | | 6,420 |
| | 6,569 |
|
Total Assets | | | | | $ | 52,124 |
| | $ | 61,689 |
|
Other current liabilities | | | | | 4,578 |
| | 4,934 |
|
Deepwater Horizon settlement and related costs | | | | | 91 |
| | 90 |
|
Tronox-related contingent liability | | | | | — |
| | 5,210 |
|
Long-term debt | | | | | 16,025 |
| | 15,092 |
|
Deferred income taxes | | | | | 7,594 |
| | 9,249 |
|
Other long-term liabilities | | | | | 4,477 |
| | 4,796 |
|
Stockholders’ equity | | | | | 16,389 |
| | 19,725 |
|
Noncontrolling interests | | | | | 2,970 |
| | 2,593 |
|
Total Equity | | | | | $ | 19,359 |
| | $ | 22,318 |
|
Total Liabilities and Equity | | | | | $ | 52,124 |
| | $ | 61,689 |
|
Capitalization | | | | | | | |
Total debt | | | | | $ | 16,058 |
| | $ | 15,092 |
|
Total equity | | | | | 19,359 |
| | 22,318 |
|
Total | | | | | $ | 35,417 |
| | $ | 37,410 |
|
|
| | | | | | | | | |
Capitalization Ratios | | | | | | | |
Total debt | | | | | 45 | % | | 40 | % |
Total equity | | | | | 55 | % | | 60 | % |
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales Volumes and Prices | | | | | | | | | | | | | | | | | |
| Average Daily Sales Volumes | | Sales Volumes | | Average Sales Price |
| | | Oil & | | | | | | Oil & | | | | | | Oil & | | |
| Natural Gas | | Condensate | | NGLs | | Natural Gas | | Condensate | | NGLs | | Natural Gas | | Condensate | | NGLs |
| MMcf/d | | MBbls/d | | MBbls/d | | Bcf | | MMBbls | | MMBbls | | Per Mcf | | Per Bbl | | Per Bbl |
Quarter Ended June 30, 2015 | | | | | | | | | | | | | | | | | |
United States | 2,354 |
| | 240 |
| | 130 |
| | 215 |
| | 21 |
| | 12 |
| | $ | 2.28 |
| | $ | 54.14 |
| | $ | 17.98 |
|
Algeria | — |
| | 50 |
| | 6 |
| | — |
| | 5 |
| | — |
| | — |
| | 60.24 |
| | 31.11 |
|
Other International | — |
| | 28 |
| | — |
| | — |
| | 3 |
| | — |
| | — |
| | 61.82 |
| | — |
|
Total | 2,354 |
| | 318 |
| | 136 |
| | 215 |
| | 29 |
| | 12 |
| | $ | 2.28 |
| | $ | 55.78 |
| | $ | 18.50 |
|
| | | | | | | | | | | | | | | | | |
Quarter Ended June 30, 2014 | | | | | | | | | | | | | | | | | |
United States | 2,620 |
| | 196 |
| | 119 |
| | 238 |
| | 18 |
| | 11 |
| | $ | 4.16 |
| | $ | 98.69 |
| | $ | 37.39 |
|
Algeria | — |
| | 72 |
| | 1 |
| | — |
| | 7 |
| | — |
| | — |
| | 108.64 |
| | 66.69 |
|
Other International | — |
| | 23 |
| | — |
| | — |
| | 2 |
| | — |
| | — |
| | 110.16 |
| | — |
|
Total | 2,620 |
| | 291 |
| | 120 |
| | 238 |
| | 27 |
| | 11 |
| | $ | 4.16 |
| | $ | 102.04 |
| | $ | 37.66 |
|
| | | | | | | | | | | | | | | | | |
Six Months Ended June 30, 2015 | | | | | | | | | | | | | | | | | |
United States | 2,545 |
| | 238 |
| | 134 |
| | 461 |
| | 43 |
| | 24 |
| | $ | 2.45 |
| | $ | 49.23 |
| | $ | 17.63 |
|
Algeria | — |
| | 60 |
| | 6 |
| | — |
| | 11 |
| | 1 |
| | — |
| | 57.80 |
| | 32.01 |
|
Other International | — |
| | 28 |
| | — |
| | — |
| | 5 |
| | — |
| | — |
| | 55.69 |
| | — |
|
Total | 2,545 |
| | 326 |
| | 140 |
| | 461 |
| | 59 |
| | 25 |
| | $ | 2.45 |
| | $ | 51.37 |
| | $ | 18.24 |
|
| | | | | | | | | | | | | | | | | |
Six Months Ended June 30, 2014 | | | | | | | | | | | | | | | | | |
United States | 2,658 |
| | 189 |
| | 109 |
| | 481 |
| | 34 |
| | 20 |
| | $ | 4.59 |
| | $ | 96.86 |
| | $ | 40.08 |
|
Algeria | — |
| | 65 |
| | 1 |
| | — |
| | 12 |
| | — |
| | — |
| | 108.60 |
| | 66.69 |
|
Other International | — |
| | 27 |
| | — |
| | — |
| | 5 |
| | — |
| | — |
| | 109.00 |
| | — |
|
Total | 2,658 |
| | 281 |
| | 110 |
| | 481 |
| | 51 |
| | 20 |
| | $ | 4.59 |
| | $ | 100.76 |
| | $ | 40.22 |
|
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Average Daily Sales Volumes MBOE/d | | Sales Volumes MMBOE | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Quarter Ended June 30, 2015 | 846 | | 77 | | | | | | | | | | |
Quarter Ended June 30, 2014 | 848 | | 77 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Six Months Ended June 30, 2015 | 890 | | 161 | | | | | | | | | | |
Six Months Ended June 30, 2014 | 834 | | 151 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Sales Revenue and Commodity Derivatives | | | | | | | |
| Sales | | | Net Cash Received (Paid) from Settlement of Commodity Derivatives |
millions | Natural Gas | | Oil & Condensate | | NGLs | | | Natural Gas | | Oil & Condensate | | NGLs |
Quarter Ended June 30, 2015 | | | | | | | | | | | | |
United States | $ | 487 |
| | $ | 1,181 |
| | $ | 213 |
| | | $ | 77 |
| | $ | 3 |
| | $ | 2 |
|
Algeria | — |
| | 277 |
| | 16 |
| | | — |
| | — |
| | — |
|
Other International | — |
| | 158 |
| | — |
| | | — |
| | — |
| | — |
|
Total | $ | 487 |
| | $ | 1,616 |
| | $ | 229 |
| | | $ | 77 |
| | $ | 3 |
| | $ | 2 |
|
| | | | | | | | | | | | |
Quarter Ended June 30, 2014 | | | | | | | | | | | | |
United States | $ | 991 |
| | $ | 1,768 |
| | $ | 404 |
| | | $ | (41 | ) | | $ | (44 | ) | | $ | 2 |
|
Algeria | — |
| | 711 |
| | 7 |
| | | — |
| | (5 | ) | | — |
|
Other International | — |
| | 226 |
| | — |
| | | — |
| | — |
| | — |
|
Total | $ | 991 |
| | $ | 2,705 |
| | $ | 411 |
| | | $ | (41 | ) | | $ | (49 | ) | | $ | 2 |
|
| | | | | | | | | | | | |
Six Months Ended June 30, 2015 | | | | | | | | | | | | |
United States | $ | 1,128 |
| | $ | 2,121 |
| | $ | 426 |
| | | $ | 150 |
| | $ | 5 |
| | $ | 17 |
|
Algeria | — |
| | 629 |
| | 35 |
| | | — |
| | — |
| | — |
|
Other International | — |
| | 285 |
| | — |
| | | — |
| | — |
| | — |
|
Total | $ | 1,128 |
| | $ | 3,035 |
| | $ | 461 |
| | | $ | 150 |
| | $ | 5 |
| | $ | 17 |
|
| | | | | | | | | | | | |
Six Months Ended June 30, 2014 | | | | | | | | | | | | |
United States | $ | 2,208 |
| | $ | 3,308 |
| | $ | 790 |
| | | $ | (122 | ) | | $ | (60 | ) | | $ | 2 |
|
Algeria | — |
| | 1,293 |
| | 7 |
| | | — |
| | — |
| | — |
|
Other International | — |
| | 528 |
| | — |
| | | — |
| | — |
| | — |
|
Total | $ | 2,208 |
| | $ | 5,129 |
| | $ | 797 |
| | | $ | (122 | ) | | $ | (60 | ) | | $ | 2 |
|
|
| | | | | | | | | | | | | | |
Anadarko Petroleum Corporation |
Financial and Operating External Guidance |
As of July 28, 2015 |
| | | | |
Note: Guidance excludes 2015 sales volumes associated with EOR and Bossier |
| | | | |
| | 3rd-Qtr | | Full-Year |
| | Guidance (see Note) | | Guidance (see Note) |
| | | | | | | | |
| Units | | Units |
| | | | | | | | |
Total Sales Volumes (MMBOE) | | 71 |
| — |
| 73 |
| | 298 |
| — |
| 302 |
|
Total Sales Volumes (MBOE/d) | | 772 |
| — |
| 793 |
| | 816 |
| — |
| 827 |
|
| | | | | | | | |
Oil (MBbl/d) | | 301 |
| — |
| 310 |
| | 306 |
| — |
| 312 |
|
| | | | | | | | |
United States | | 216 |
| — |
| 220 |
| | 221 |
| — |
| 225 |
|
Algeria | | 58 |
| — |
| 61 |
| | 62 |
| — |
| 63 |
|
Ghana | | 27 |
| — |
| 29 |
| | 23 |
| — |
| 24 |
|
| | | | | | | | |
Natural Gas (MMcf/d) | | | | | | | | |
| | | | | | | | |
United States | | 2,135 |
| — |
| 2,180 |
| | 2,305 |
| — |
| 2,325 |
|
| | | | | | | | |
Natural Gas Liquids (MBbl/d) | | | | | | | | |
| | | | | | | | |
United States | | 108 |
| — |
| 115 |
| | 119 |
| — |
| 122 |
|
Algeria | | 6 |
| — |
| 8 |
| | 5 |
| — |
| 6 |
|
| | | | | | | | |
| | | | | | | | |
| | $ / Unit | | $ / Unit |
Price Differentials vs NYMEX (w/o hedges) | | | | | | | | |
| | | | | | | | |
Oil ($/Bbl) | | (3.70 | ) | — |
| 1.60 |
| | (3.90 | ) | — |
| 1.40 |
|
| | | | | | | | |
United States | | (6.00 | ) | — |
| (1.00 | ) | | (6.00 | ) | — |
| (1.00 | ) |
Algeria | | 2.00 |
| — |
| 8.00 |
| | 2.00 |
| — |
| 8.00 |
|
Ghana | | 2.00 |
| — |
| 8.00 |
| | 1.00 |
| — |
| 6.00 |
|
| | | | | | | | |
Natural Gas ($/Mcf) | | | | | | | | |
| | | | | | | | |
United States | | (0.45 | ) | — |
| (0.35 | ) | | (0.45 | ) | — |
| (0.35 | ) |
| | | | | | | | |
| | | | | | |
|
| | | | | | | | | | | | | | |
Anadarko Petroleum Corporation |
Financial and Operating External Guidance |
As of July 28, 2015 |
| | | | |
Note: Guidance excludes items affecting comparability |
| | | | |
| | 3rd-Qtr | | Full-Year |
| | Guidance (see Note) | | Guidance (see Note) |
| | | | | | | | |
| | $ MM | | $ MM |
Other Revenues | | | | | | | | |
Marketing and Gathering Margin | | 30 |
| — |
| 50 |
| | 140 |
| — |
| 160 |
|
Minerals and Other | | 60 |
| — |
| 70 |
| | 280 |
| — |
| 300 |
|
| | | | | | | | |
| | | | | | | | |
| | $ / BOE | | $ / BOE |
Costs and Expenses | | | | | | | | |
Oil & Gas Direct Operating | | 3.95 |
| — |
| 4.15 |
| | 3.45 |
| — |
| 3.75 |
|
Oil & Gas Transportation/Other | | 3.75 |
| — |
| 3.95 |
| | 3.70 |
| — |
| 3.90 |
|
Depreciation, Depletion, and Amortization | | 15.25 |
| — |
| 15.75 |
| | 15.40 |
| — |
| 15.70 |
|
Production Taxes (% of Product Revenue) | | 8.0 | % | — |
| 9.0 | % | | 7.5 | % | — |
| 8.5 | % |
| | | | | | | | |
| | $ MM | | $ MM |
| | | | | | | | |
General and Administrative | | 330 |
| — |
| 350 |
| | 1,225 |
| — |
| 1,275 |
|
Exploration Expense | | | | | | | | |
Non-Cash | | 90 |
| — |
| 110 |
| | 500 |
| — |
| 550 |
|
Cash | | 115 |
| — |
| 135 |
| | 375 |
| — |
| 400 |
|
Interest Expense (net) | | 200 |
| — |
| 210 |
| | 805 |
| — |
| 825 |
|
Other (Income) Expense | | 35 |
| — |
| 45 |
| | 175 |
| — |
| 225 |
|
| | | | | | | | |
Taxes | | | | | | | | |
Algeria (All current) | | 55 | % | — |
| 60 | % | | 55 | % | — |
| 60 | % |
Rest of Company (35% Current / 65% Deferred for Q3 and Expect Significant Current Tax-Benefit for FY) | | 35 | % | — |
| 45 | % | | 25 | % | — |
| 30 | % |
| | | | | | | | |
| | | | | | | | |
Avg. Shares Outstanding (MM) | | | | | | | | |
Basic | | 507 |
| — |
| 508 |
| | 507 |
| — |
| 509 |
|
Diluted | | 508 |
| — |
| 510 |
| | 508 |
| — |
| 510 |
|
| | | | | | | | |
| | | | | | | | |
Capital Investment (Excluding Western Gas Partners, LP) | $ MM | | $ MM |
| | | | | | | | |
APC Capital Expenditures | | 1,250 |
| — |
| 1,450 |
| | 5,400 |
| — |
| 5,700 |
|
| | | | | | | | |
|
| | | | | | | | | |
Anadarko Petroleum Corporation |
Commodity Hedge Positions |
As of July 28, 2015 |
| | | | | | | | | |
| | | | | Weighted Average Price per barrel |
| | | Volume (MBbls/d) | | Floor Sold | | Floor Purchased | | Ceiling Sold |
Crude Oil | | | | | | | | |
Three-Way Collars | | | | | | | |
2016 | | | | | | | |
| WTI | | 20 | $ | 45.00 | $ | 60.00 | $ | 67.00 |
| Brent | | 8 | $ | 50.00 | $ | 65.00 | $ | 75.00 |
| | | 28 | $ | 46.43 | $ | 61.43 | $ | 69.29 |
| | | | | | | |
| | | 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 July 28, 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 | 6.06% | 3M LIBOR | |
| | | | | | | |
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
|
| | | | | | | | | | | | | | | | | | | | | | | |
Average Daily Sales Volumes |
| Quarter Ended June 30, 2015 | | Quarter Ended June 30, 2014 |
| | | Oil & | | | | | | | | Oil & | | | | |
| Natural Gas | | Condensate | | NGLs | | Total | | Natural Gas | | Condensate | | NGLs | | Total |
| MMcf/d | | MBbls/d | | MBbls/d | | MBOE/d | | MMcf/d | | MBbls/d | | MBbls/d | | MBOE/d |
U.S. Onshore | 2,241 |
| | 174 |
| | 123 |
| | 671 |
| | 2,443 |
| | 134 |
| | 113 |
| | 654 |
|
Deepwater Gulf of Mexico | 113 |
| | 57 |
| | 7 |
| | 83 |
| | 176 |
| | 41 |
| | 6 |
| | 76 |
|
International and Alaska | — |
| | 87 |
| | 6 |
| | 92 |
| | — |
| | 101 |
| | 1 |
| | 102 |
|
Same-Store Sales* | 2,354 |
| | 318 |
| | 136 |
| | 846 |
| | 2,619 |
| | 276 |
| | 120 |
| | 832 |
|
China, Pinedale/Jonah, and EOR | — |
| | — |
| | — |
| | — |
| | 1 |
| | 15 |
| | — |
| | 16 |
|
Total | 2,354 |
| | 318 |
| | 136 |
| | 846 |
| | 2,620 |
| | 291 |
| | 120 |
| | 848 |
|
| | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2015 | | Six Months Ended June 30, 2014 |
| | | Crude Oil & | | | | | | | | Crude Oil & | | | | |
| Natural Gas | | Condensate | | NGLs | | Total | | Natural Gas | | Condensate | | NGLs | | Total |
| MMcf/d | | MBbls/d | | MBbls/d | | MBOE/d | | MMcf/d | | MBbls/d | | MBbls/d | | MBOE/d |
U.S. Onshore | 2,378 |
| | 171 |
| | 127 |
| | 694 |
| | 2,420 |
| | 123 |
| | 102 |
| | 628 |
|
Deepwater Gulf of Mexico | 167 |
| | 51 |
| | 7 |
| | 86 |
| | 225 |
| | 43 |
| | 6 |
| | 87 |
|
International and Alaska | — |
| | 97 |
| | 6 |
| | 103 |
| | — |
| | 95 |
| | 1 |
| | 96 |
|
Same-Store Sales* | 2,545 |
| | 319 |
| | 140 |
| | 883 |
| | 2,645 |
| | 261 |
| | 109 |
| | 811 |
|
China, Pinedale/Jonah, and EOR | — |
| | 7 |
| | — |
| | 7 |
| | 13 |
| | 20 |
| | 1 |
| | 23 |
|
Total | 2,545 |
| | 326 |
| | 140 |
| | 890 |
| | 2,658 |
| | 281 |
| | 110 |
| | 834 |
|
| | | | | | | | | | | | | | | |
| |
* | Same-store sales for the periods ended June 30, 2015 and June 30, 2014, includes sales volumes related to Bossier as the divestiture was not announced until July 2015. |
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Average Daily Sales Volumes |
| | | Year Ended December 31, 2014 |
| | | | | | | | | | | Crude Oil & | | | | |
| | | | | | | | | Natural Gas | | Condensate | | NGLs | | Total |
| | | | | | | | | MMcf/d | | MBbls/d | | MBbls/d | | MBOE/d |
U.S. Onshore | | | | | | | | | 2,311 |
| | 136 |
| | 111 |
| | 632 |
|
Deepwater Gulf of Mexico | | | | | | | | | 196 |
| | 45 |
| | 5 |
| | 83 |
|
International and Alaska | | | | | | | | | — |
| | 94 |
| | 3 |
| | 97 |
|
Same-Store Sales** | | | | | | | | | 2,507 |
| | 275 |
| | 119 |
| | 812 |
|
China, Pinedale/Jonah, EOR, and Bossier | | | | | | | | | 82 |
| | 17 |
| | — |
| | 31 |
|
Total | | | | | | | | | 2,589 |
| | 292 |
| | 119 |
| | 843 |
|
| | | | | | | | | | | | | | | |
| |
** | Same-store sales for the year ended December 31, 2014, excludes sales volumes for the recently announced Bossier divestiture, which is consistent with the 2015 third-quarter and full-year sales volumes guidance provided in this release on page 10. |
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