HOUSTON, March 7, 2017 /PRNewswire/ -- Anadarko Petroleum
Corporation (NYSE: APC) today announced its 2017 initial capital
expectations and guidance. The company will also host an investor
conference call tomorrow to discuss recent updates and
expectations, including:
HIGHLIGHTS
- Announced 2017 initial capital program of $4.5 to $4.7 billion(1)
- Increased Wolfcamp A (Delaware
Basin) net resources by 50 percent to more than 3 billion BOE
- Increased DJ Basin development area net resources by 33 percent
to more than 2 billion BOE
- Improved margins per barrel significantly as a result of higher
oil-production mix
- Completed Eagleford divestiture increasing cash on hand as of
March 3 to more than $5 billion
- Expected 25-percent increase in oil sales volumes in 2017
relative to the prior year(2)
"Our 2017 initial capital program is designed to leverage our
streamlined portfolio and sharpened focus on higher-margin oil
production, which is expected to generate stronger returns and
substantial cash flow to fund material growth over the next five
years," said Al Walker, Anadarko
Chairman, President and CEO. "With a growing lower-risk resource
base of more than 6.5 billion BOE (barrels of oil equivalent) in
our premier U.S. focus areas of the Delaware and DJ basins, and the deepwater
Gulf of Mexico, I believe Anadarko
is poised to deliver exceptional value in 2017 and well beyond.
"In 2017, we plan to allocate approximately 80 percent of our
total capital program toward our U.S. onshore upstream and
midstream activities, and our expanded position in the deepwater
Gulf of Mexico," added Walker.
"These investments provide the foundation for our increased
five-year oil growth expectations of more than 15 percent on a
compounded annual basis at current prices, and we are prepared to
be flexible throughout the year if we see the opportunity in the
Delaware and DJ basins to
accelerate activity to capture additional value. Furthermore,
sustained oil production from our deepwater Gulf of Mexico, Algeria and Ghana assets is expected to generate
significant free cash flow to support growth and fund future value
creation through exploration success and our LNG business."
2017 Initial
Capital Expectations ($4.5 - $4.7
Billion)(1)
|
|
|
|
|
|
By
Area
|
Billions
|
|
By
Type
|
|
U.S.
Onshore
|
$
|
1.9
|
|
|
U.S. Focus
Areas*
|
80
|
%
|
Deepwater &
Int'l. Operations
|
1.1
|
|
|
Int'l. Cash
Generation**
|
2
|
%
|
Deepwater &
Int'l. Exploration/LNG
|
0.8
|
|
|
Future Upside
(Exploration & LNG)
|
15
|
%
|
Midstream
|
0.6
|
|
|
Corporate
|
3
|
%
|
|
Note: All amounts
are approximates.
|
*
U.S. onshore upstream and midstream, and deepwater Gulf of
Mexico
|
** Algeria and
Ghana operations
|
Initial
Sales-Volume Expectations(2)
|
|
|
2017 Initial
Expectations
|
|
2016
|
|
|
|
|
Total
(MMBOE)
|
235 – 239
|
|
210
|
|
|
|
|
Oil
(MBOPD)
|
357 – 362
|
|
287
|
U.S. ONSHORE
During 2016, Anadarko high-graded its U.S. onshore portfolio by
divesting a number of natural-gas-weighted assets and
concentrating its top-tier positions in the Delaware and DJ basins, which resulted in an
expected 25-percent increase in liquids composition from the
U.S. onshore relative to 2015 on a same-store-sales
basis.(2)
In the Delaware Basin in
West Texas, Anadarko increased its
estimated net resources in the Wolfcamp A formation by about
50 percent to more than 3 billion BOE of net resources. In
addition, the company estimates it has more than 1 billion BOE of
incremental potential upside on its acreage in the Wolfcamp B, C
and D formations, the Bone Spring, and Avalon Shale opportunities. In 2017, the company
plans to invest approximately $820
million in Delaware Basin
upstream activities, with an additional $560
million of Anadarko capital allocated toward the expansion
of its midstream backbone to enable future growth. Anadarko plans
to average 10 to 14 operated drilling rigs during the year and
drill more than 150 operated mid-lateral-equivalent wells.
In the DJ Basin of northeast Colorado, Anadarko increased its estimated net
resources by about 33 percent as a result of improved
recoveries and additional down-spacing opportunities. The company
now estimates it has more than 2 billion BOE of net resources
within its development area, with additional upside on its acreage
in the greater DJ Basin. In 2017, Anadarko plans to invest
approximately $840 million in DJ
Basin upstream activities, average five to six operated rigs and
drill approximately 290 mid-lateral-equivalent wells.
"We expect our current 2017 U.S. onshore capital allocation to
deliver significant oil growth toward the end of the year as we
overcome the effects of last year's reduced activity levels on our
shorter-cycle onshore opportunities," added Walker. "We anticipate
achieving an exit rate of approximately 50,000 barrels of oil per
day in the Delaware Basin, which
is more than 80-percent higher than 2016, and in the DJ Basin, we
expect our oil-production exit rate to be about 100,000 barrels per
day, a 30-percent increase over the prior year."
DEEPWATER & INTERNATIONAL OPERATIONS
In 2017, Anadarko expects to invest approximately $1.1 billion in its deepwater Gulf of Mexico, Algeria and Ghana assets.
In the Gulf of Mexico, the
company plans to continue leveraging its premier infrastructure
position and drill approximately seven development tiebacks during
the year. In addition, Anadarko expects to benefit from a full year
of production from the recently acquired Freeport-McMoRan
properties, which doubled Anadarko's sales volumes to more than
160,000 BOE per day at the end of last year. Minimal capital
investments are expected to be required in 2017 to maintain the
steady, long-lived, high-margin oil production provided by the
company's strong cash-generating assets in Algeria and offshore Ghana.
DEEPWATER & INTERNATIONAL EXPLORATION AND LNG
Exploration and LNG development continue to be differentiating
components of Anadarko's business. In 2017, the company expects to
invest approximately $770 million in
its deepwater and international exploration program and LNG project
in Mozambique.
During the year, Anadarko plans to drill up to 10
exploration/appraisal wells in the deepwater Gulf of Mexico, Côte d'Ivoire, and
Colombia, where Anadarko recently
added to its previous exploration success with another discovery at
the Purple Angel prospect.
The company expects to continue advancing the Mozambique LNG
project where it has made good progress on the legal and
contractual framework, and recently submitted a Development Plan to
the Government of Mozambique for
the Golfinho/Atum discoveries.
CONFERENCE CALL TOMORROW AT 8
A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Wednesday, March 8, 2017, at 8 a.m. Central Standard Time (9 a.m. Eastern
Standard Time) to discuss its initial 2017 capital program and
guidance. The dial-in number is 877.883.0383 in the U.S. or
412.902.6506 internationally. The confirmation number is 4377341.
To access the live audio webcast and related presentation
materials, please visit the investor relations section of the
company's website at www.anadarko.com. A replay of the conference
call will also be available on the website for approximately 30
days following the call.
INVESTOR BOOK
Anadarko's updated Investor Book is available on the company's
website at http://investors.anadarko.com/investor-kit.
Four pages of supplemental materials including the company's
initial 2017 guidance, updated hedging positions and a
reconciliation of same-store-sales volumes are provided in the
tables attached to this release.
(1) Does not include capital investments made by
Western Gas Partners, LP (NYSE: WES).
(2) See the accompanying table for a reconciliation
of same-store-sales volumes, which reflects both divestitures and
acquisitions.
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
2016, the company had 1.72 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 successfully execute upon its
capital program; to meet financial and operating guidance contained
in this news release; to meet the long-term goals identified in
this news release; to successfully drill, complete, test and
produce the wells identified in this news release; and to
successfully plan, secure necessary government approvals, enter
into long-term sales contracts, finance, build, and operate the
necessary infrastructure and LNG park in Mozambique. See "Risk Factors" in the
company's 2016 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," "resource base," "potential upside," 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, 2016, 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
INVESTORS:
Robin Fielder,
robin.fielder@anadarko.com, 832.636.1462
Jim Grant, james.grant@anadarko.com,
832.636.8320
Pete Zagrzecki,
pete.zagrzecki@anadarko.com, 832.636.7727
Anadarko Petroleum
Corporation
|
Financial and
Operating External Guidance
|
2017 Q1
Guidance
|
|
|
|
|
|
Note: Guidance
excludes 2017 sales volumes associated with the Eagleford and
Marcellus* divestitures.
|
|
|
|
|
|
|
|
1st-Qtr.
|
|
Full-Year
|
|
|
Guidance (see
Note)
|
|
Guidance (see
Note)
|
|
|
Units
|
|
Units
|
|
|
|
|
|
|
|
|
|
Total Sales
Volumes (MMBOE)
|
|
59
|
|
—
|
|
61
|
|
|
235
|
|
—
|
|
239
|
|
Total Sales
Volumes (MBOE/d)
|
|
656
|
|
—
|
|
678
|
|
|
644
|
|
—
|
|
655
|
|
|
|
|
|
|
|
|
|
|
Oil
(MBbl/d)
|
|
351
|
|
—
|
|
356
|
|
|
357
|
|
—
|
|
362
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
253
|
|
—
|
|
256
|
|
|
273
|
|
—
|
|
276
|
|
Algeria
|
|
70
|
|
—
|
|
71
|
|
|
59
|
|
—
|
|
60
|
|
Ghana
|
|
28
|
|
—
|
|
29
|
|
|
25
|
|
—
|
|
26
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
(MMcf/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
1,260
|
|
—
|
|
1,300
|
|
|
1,165
|
|
—
|
|
1,195
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Liquids (MBbl/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
96
|
|
—
|
|
100
|
|
|
90
|
|
—
|
|
93
|
|
Algeria
|
|
5
|
|
—
|
|
7
|
|
|
5
|
|
—
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ /
Unit
|
|
$ /
Unit
|
Price
Differentials vs. NYMEX (w/o hedges)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
($/Bbl)
|
|
(4.90)
|
|
—
|
|
(0.90)
|
|
|
(5.10)
|
|
—
|
|
(1.00)
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
(6.00)
|
|
—
|
|
(2.00)
|
|
|
(6.00)
|
|
—
|
|
(2.00)
|
|
Algeria
|
|
(2.00)
|
|
—
|
|
2.00
|
|
|
(2.00)
|
|
—
|
|
2.00
|
|
Ghana
|
|
(2.00)
|
|
—
|
|
2.00
|
|
|
(2.00)
|
|
—
|
|
2.00
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
($/Mcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
(0.35)
|
|
—
|
|
(0.15)
|
|
|
(0.35)
|
|
—
|
|
(0.15)
|
|
|
|
|
|
|
|
|
|
|
Anadarko Petroleum
Corporation
|
Financial and
Operating External Guidance
|
2017 Q1
Guidance
|
|
|
|
|
|
Note: Guidance
excludes 2017 sales volumes associated with the Eagleford and
Marcellus* divestitures.
|
|
|
|
|
|
|
|
1st-Qtr.
|
|
Full-Year
|
|
|
Guidance (see
Note)
|
|
Guidance (see
Note)
|
|
|
$
MM
|
|
$
MM
|
Other
Revenues
|
|
|
|
|
|
|
|
|
Marketing and Gathering Margin
|
|
75
|
|
—
|
|
85
|
|
|
380
|
|
—
|
|
400
|
|
Minerals
and Other
|
|
55
|
|
—
|
|
75
|
|
|
180
|
|
—
|
|
200
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
$ /
BOE
|
|
$ /
BOE
|
Oil
& Gas Direct Operating
|
|
3.90
|
|
—
|
|
4.10
|
|
|
4.00
|
|
—
|
|
4.50
|
|
Oil
& Gas Transportation
|
|
3.40
|
|
—
|
|
3.60
|
|
|
3.50
|
|
—
|
|
3.65
|
|
Depreciation, Depletion, and Amortization
|
|
15.75
|
|
—
|
|
16.10
|
|
|
17.80
|
|
—
|
|
17.90
|
|
Production Taxes (% of Product Revenue)
|
|
6.5
|
%
|
—
|
|
7.5
|
%
|
|
6.5
|
%
|
—
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
$
MM
|
|
$
MM
|
|
|
|
|
|
|
|
|
|
General
and Administrative
|
|
260
|
|
—
|
|
280
|
|
|
1,000
|
|
—
|
|
1,050
|
|
Other
Operating Expense
|
|
20
|
|
—
|
|
30
|
|
|
30
|
|
—
|
|
40
|
|
Exploration Expense
|
|
|
|
|
|
|
|
|
Non-Cash
|
|
210
|
|
—
|
|
240
|
|
|
450
|
|
—
|
|
550
|
|
Cash
|
|
55
|
|
—
|
|
75
|
|
|
235
|
|
—
|
|
255
|
|
Interest
Expense (net)
|
|
215
|
|
—
|
|
230
|
|
|
845
|
|
—
|
|
865
|
|
Other
(Income) Expense
|
|
(5)
|
|
—
|
|
5
|
|
|
(15)
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
|
|
|
|
|
|
|
Algeria
(100% current)
|
|
60
|
%
|
—
|
|
70
|
%
|
|
60
|
%
|
—
|
|
70
|
%
|
Rest of
Company (100% deferred)
|
|
5
|
%
|
—
|
|
15
|
%
|
|
30
|
%
|
—
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
Noncontrolling
Interest
|
|
70
|
|
—
|
|
75
|
|
|
255
|
|
—
|
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg. Shares
Outstanding (MM)
|
|
|
|
|
|
|
|
|
Basic
|
|
551
|
|
—
|
|
553
|
|
|
552
|
|
—
|
|
554
|
|
Diluted
|
|
552
|
|
—
|
|
554
|
|
|
553
|
|
—
|
|
555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Investment
(Excluding Western Gas Partners, LP)
|
$
MM
|
|
$
MM
|
|
|
|
|
|
|
|
|
|
APC
Capital Expectations
|
|
950
|
|
—
|
|
1,150
|
|
|
4,500
|
|
—
|
|
4,700
|
|
____________________
|
*
Pending
|
Anadarko Petroleum
Corporation
|
Commodity Hedge
Positions
|
As of March 7,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Price per barrel
|
|
|
|
Volume
(MBbls/d)
|
|
Floor
Sold
|
|
Floor
Purchased
|
|
Ceiling
Sold
|
Oil
|
|
|
|
|
|
|
|
|
Three-Way Collars
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
WTI
|
|
68
|
$
|
40.00
|
$
|
50.00
|
$
|
58.84
|
|
Brent
|
|
23
|
$
|
40.00
|
$
|
50.00
|
$
|
62.64
|
|
|
|
91
|
$
|
40.00
|
$
|
50.00
|
$
|
59.80
|
|
|
|
|
|
|
|
|
|
Volume
|
|
Weighted Average
Price per MMBtu
|
|
|
|
(Thousand
|
|
|
|
|
|
|
|
|
|
MMBtu/d)
|
|
Floor
Sold
|
|
Floor
Purchased
|
|
Ceiling
Sold
|
Natural
Gas
|
|
|
|
|
|
|
|
|
Three-Way Collars
|
|
|
|
|
|
|
|
2017
|
|
|
682
|
$
|
2.00
|
$
|
2.75
|
$
|
3.60
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
250
|
$
|
2.00
|
$
|
2.75
|
$
|
3.54
|
Anadarko Petroleum
Corporation
|
Reconciliation of
Same-Store Sales
|
|
|
|
|
|
|
|
|
Average Daily
Sales Volumes
|
|
|
|
|
|
|
|
|
|
Oil
|
|
Natural
Gas
|
|
NGLs
|
|
Total
|
|
MBbls/d
|
|
MMcf/d
|
|
MBbls/d
|
|
MBOE/d
|
Quarter Ended
March 31, 2016
|
|
|
|
|
|
|
|
U.S.
Onshore
|
130
|
|
|
1,128
|
|
|
71
|
|
|
389
|
|
Deepwater Gulf of
Mexico
|
58
|
|
|
85
|
|
|
7
|
|
|
79
|
|
International and
Alaska
|
93
|
|
|
—
|
|
|
6
|
|
|
99
|
|
Same-Store
Sales
|
281
|
|
|
1,213
|
|
|
84
|
|
|
567
|
|
Divestitures**
|
34
|
|
|
1,090
|
|
|
44
|
|
|
260
|
|
Total
|
315
|
|
|
2,303
|
|
|
128
|
|
|
827
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2016
|
|
|
|
|
|
|
|
U.S.
Onshore
|
127
|
|
|
1,127
|
|
|
77
|
|
|
392
|
|
Deepwater Gulf of
Mexico
|
56
|
|
|
73
|
|
|
6
|
|
|
74
|
|
International and
Alaska
|
81
|
|
|
—
|
|
|
5
|
|
|
86
|
|
Same-Store
Sales
|
264
|
|
|
1,200
|
|
|
88
|
|
|
552
|
|
Divestitures**
|
32
|
|
|
988
|
|
|
43
|
|
|
240
|
|
Total
|
296
|
|
|
2,188
|
|
|
131
|
|
|
792
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30, 2016
|
|
|
|
|
|
|
|
U.S.
Onshore
|
131
|
|
|
1,067
|
|
|
79
|
|
|
388
|
|
Deepwater Gulf of
Mexico
|
65
|
|
|
77
|
|
|
6
|
|
|
84
|
|
International and
Alaska
|
93
|
|
|
—
|
|
|
7
|
|
|
100
|
|
Same-Store
Sales
|
289
|
|
|
1,144
|
|
|
92
|
|
|
572
|
|
Divestitures**
|
28
|
|
|
859
|
|
|
37
|
|
|
208
|
|
Total
|
317
|
|
|
2,003
|
|
|
129
|
|
|
780
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31, 2016
|
|
|
|
|
|
|
|
U.S.
Onshore
|
125
|
|
|
1,099
|
|
|
80
|
|
|
388
|
|
Deepwater Gulf of
Mexico
|
69
|
|
|
82
|
|
|
8
|
|
|
91
|
|
International and
Alaska
|
107
|
|
|
—
|
|
|
8
|
|
|
115
|
|
Acquisitions*
|
12
|
|
|
11
|
|
|
1
|
|
|
15
|
|
Same-Store
Sales
|
313
|
|
|
1,192
|
|
|
97
|
|
|
609
|
|
Divestitures**
|
23
|
|
|
689
|
|
|
27
|
|
|
165
|
|
Total
|
336
|
|
|
1,881
|
|
|
124
|
|
|
774
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
|
|
|
|
|
|
U.S.
Onshore
|
129
|
|
|
1,105
|
|
|
77
|
|
|
390
|
|
Deepwater Gulf of
Mexico
|
62
|
|
|
79
|
|
|
7
|
|
|
82
|
|
International and
Alaska
|
93
|
|
|
—
|
|
|
6
|
|
|
99
|
|
Acquisitions*
|
3
|
|
|
3
|
|
|
—
|
|
|
4
|
|
Same-Store
Sales
|
287
|
|
|
1,187
|
|
|
90
|
|
|
575
|
|
Divestitures**
|
29
|
|
|
906
|
|
|
38
|
|
|
218
|
|
Total
|
316
|
|
|
2,093
|
|
|
128
|
|
|
793
|
|
|
|
*
|
Includes volumes
related to the acquisition of Gulf of Mexico assets on December 15,
2016.
|
**
|
Includes East Chalk,
Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, Carthage, Eagleford,
and Marcellus (pending).
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/anadarko-announces-2017-initial-capital-program-and-guidance-300419678.html
SOURCE Anadarko Petroleum Corporation