ANADARKO PETROLEUM HOUSTON, July 28, 2015 /PRNewswire/ -- 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.
Logo - http://photos.prnewswire.com/prnh/20141103/156201LOGO
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 81 (88) 172 (186)
of derivative
instruments
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 Sales Volumes
MBOE/d 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 Floor Sold Floor Purchased Ceiling Sold
(MBbls/d)
---------
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.
PDF - http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/247937-2Q15_OpsReport_FINAL.pdf
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/anadarko-announces-second-quarter-2015-results-300120023.html
SOURCE Anadarko Petroleum Corporation
