ANADARKO PETROLEUM HOUSTON, July 24, 2017 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its second-quarter 2017 results, reporting a net loss attributable to common stockholders of $415 million, or $0.76 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by $8 million, or $0.01 per share (diluted), on an after-tax basis.((1) )Net cash provided by operating activities in the second quarter of 2017 was $857 million.
SECOND-QUARTER HIGHLIGHTS
-- Achieved a 12-percent increase in total oil sales volume over the second
quarter of 2016
-- Increased overall sales-volume product mix to 67-percent liquids
compared to 54-percent liquids in the second quarter of 2016
-- Continued deepwater Gulf of Mexico success with new tieback activities
at Horn Mountain and K2, and facility upgrades at Constitution
-- Closed divestitures totaling more than $600 million during the quarter
"Our portfolio delivered good operating results and cash flow during the second quarter with significantly improved cash margins and increased oil volumes year-over-year, even with the temporary production impacts associated with our response efforts in Colorado," said Al Walker, Anadarko Chairman, President and CEO. "Our successful divestitures further strengthened the company's cash position, while providing flexibility for the second half of the year and beyond. The current market conditions require lower capital intensity given the volatility of margins realized in this operating environment. As such, we are reducing our level of investments by $300 million for the full year, and adjusting full-year sales-volume guidance to reflect recent divestitures and the deferred production associated with the Colorado response. We feel this is a prudent move, while still expecting to average approximately 130,000 barrels of oil per day in the deepwater Gulf of Mexico and exit the year at around 150,000 barrels of oil per day from the Delaware and DJ basins combined."
OPERATIONAL HIGHLIGHTS
Anadarko's second-quarter 2017 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 57 million barrels of oil equivalent (BOE), or an average of 631,000 BOE per day.
During the second quarter, Anadarko achieved record oil sales volume in the Delaware Basin of West Texas averaging approximately 33,000 barrels of oil per day, a 52-percent increase over the second quarter of 2016. Importantly, Anadarko is in the final stages of securing operatorship for approximately 70 percent of the acreage position, which was previously part of the joint-venture agreement that recently concluded with Shell. Anadarko's working and net-revenue interest remains unchanged, and the company's efforts can begin to evolve from capturing operatorship and appraising the prior Area of Mutual Interest to development of this world-class asset. In addition, the company continues to expand takeaway capacity having recently reached an agreement to be an anchor shipper on a residue-gas line going from the Western Gas Partners, LP (WES)-operated Ramsey plant and future WES-operated Mentone plant to the Waha area. Anadarko also concluded a tranche of crude oil pipeline capacity from the Permian Basin to Gulf Coast markets.
In the DJ Basin, oil sales volume for the quarter averaged 76,000 barrels per day. The company continued to refine its completions program and achieve greater drilling efficiencies with record cycle times for short-, mid- and longer-length laterals. The company's new completion design is yielding cumulative production improvements of more than 35 percent compared to the core type-curves provided during the March Investor Conference. During the quarter, Anadarko also mobilized significant resources in its response to the Notice to Operators issued by Colorado's oil and gas regulatory authority, which included the company's additional efforts to inspect its vertical well inventory and remove all associated one-inch return lines.
In the Deepwater Gulf of Mexico, Anadarko's oil sales volume averaged 113,000 barrels per day, as the company successfully completed several planned maintenance activities and facility upgrades. The first development well of the Horn Mountain Deep discovery was brought on line ahead of schedule and is currently producing approximately 12,000 barrels of oil per day. In addition, field production continued at a nine-year high at K2, with a new tieback brought on production in April, which is currently producing more than 9,000 BOE per day. The company also expanded its industry-leading leasehold position in the recent deepwater Gulf lease sale by being awarded 11 new leases near existing opportunities and infrastructure.
Internationally, sales volume averaged 93,000 barrels per day, an increase of 25 percent over the second quarter of 2016. The year-over-year increase was largely driven by the startup of the TEN development offshore Ghana in the third-quarter of 2016. In addition, Anadarko is completing many of the core components of the legal and contractual framework for its LNG project in Mozambique. The progress helps position the company to advance negotiations in securing long-term LNG offtake contracts as it continues toward a final investment decision.
OPERATIONS REPORT
For additional details on Anadarko's second-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
CONFERENCE CALL TOMORROW AT 7:30 A.M. CDT, 8:30 A.M. EDT
Anadarko will host a conference call on Tuesday, July 25, 2017, at 7:30 a.m. Central (8:30 a.m. Eastern) to discuss second-quarter results. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 4412190. 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
Ten pages of summary financial data follow, including current hedge positions, a reconciliation of "divestiture-adjusted" or "same-store" sales, and updated financial and production guidance.
((1) )See the accompanying table for details of certain items affecting comparability.
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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 realize its expectations regarding performance, including Anadarko's ability to successfully execute upon its capital program; to meet financial and operating guidance contained in this news release, including the impact of response efforts in Colorado; to successfully drill, complete, test and produce the wells identified in this news release; to timely complete and commercially operate the projects and drilling prospects identified in this news release; to finalize the necessary steps to ensure operatorship; and to successfully plan, secure additional 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.
Anadarko Contacts
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Below are reconciliations of certain GAAP to non-GAAP financial measures, each as required under Regulation G of the Securities Exchange Act of 1934. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.
Management uses adjusted net income (loss) to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain noncash and/or other items that management does not consider to be indicative of the Company's performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company's operating and financial performance across periods, as well as facilitating comparisons to others in the Company's industry.
Quarter Ended June 30, 2017
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
--------------------------------- --- --- --------
Net income (loss) attributable to
common stockholders (GAAP) $(415) $(0.76)
Adjustments for certain items
affecting comparability
Total gains (losses) on
derivatives, net, less net cash
from settlement of commodity
derivatives* $(45) (29) (0.05)
Gains (losses) on divestitures, net 205 130 0.24
Impairments
Producing and general properties (10) (7) (0.02)
Exploration assets (82) (65) (0.12)
Restructuring charges (18) (11) (0.02)
Change in uncertain tax positions - (10) (0.02)
Certain items affecting
comparability $50 8 0.01
----------------------- --- --- ----
Adjusted net income (loss) (Non-
GAAP) $(423) $(0.77)
-------------------------------- ----- ------
* Includes $(104) million related to interest-rate derivatives and $59 million related to commodity derivatives.
Quarter Ended June 30, 2016
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
--------------------------------- --- --- --------
Net income (loss) attributable to
common stockholders (GAAP) $(692) $(1.36)
Adjustments for certain items
affecting comparability
Total gains (losses) on
derivatives, net, less net cash
from settlement of commodity
derivatives* $(371) (234) (0.46)
Gains (losses) on divestitures, net (104) (66) (0.13)
Impairments (18) (11) (0.02)
Restructuring charges (48) (30) (0.06)
Loss on early extinguishment of
debt (124) (78) (0.15)
Third-party well and platform
decommissioning obligation 56 35 0.07
Change in uncertain tax positions - (4) (0.01)
Certain items affecting
comparability $(609) (388) (0.76)
----------------------- ----- ---- -----
Adjusted net income (loss) (Non-
GAAP) $(304) $(0.60)
-------------------------------- ----- ------
* Includes $(213) million related
to interest-rate derivatives,
$(154) million related to
commodity derivatives, and $(4)
million related to gathering,
processing, and marketing
sales.
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt in the capitalization ratio is useful to investors in determining the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt. In addition, management believes that presenting Anadarko's net debt excluding WGP is useful because WGP is a separate public company with its own capital structure.
June 30, 2017
Anadarko
Anadarko WGP* excluding
millions Consolidated Consolidated WGP
-------- ------------ ------------ ---
Total debt (GAAP) $15,480 $3,281 $12,199
Less cash and cash
equivalents 6,008 189 5,819
------------------ ----- --- -----
Net debt (Non-GAAP) $9,472 $3,092 $6,380
------------------ ------ ------ ------
Anadarko
Anadarko excluding
millions Consolidated WGP
-------- ------------ ---
Net debt $9,472 $6,380
Total equity 14,656 11,472
------------ ------ ------
Adjusted
capitalization $24,128 $17,852
--------------- ------- -------
39% 36%
Net debt to adjusted
capitalization ratio
---------------------
* Western Gas Equity Partners, LP
(WGP) is a publicly traded
consolidated subsidiary of
Anadarko, and Western Gas
Partners, LP (WES) is a
consolidated subsidiary of WGP
Anadarko Petroleum Corporation
Cash Flow Information
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
millions 2017 2016 2017 2016
-------- ---- ---- ---- ----
Cash Flows from Operating Activities
------------------------------------
Net income (loss) $(334) $(611) $(609) $(1,609)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities
Depreciation, depletion,
and amortization 1,037 984 2,152 2,133
Deferred income taxes 488 (407) (172) (820)
Dry hole expense and
impairments of unproved
properties 454 10 1,466 45
Impairments 10 18 383 34
(Gains) losses on
divestitures, net (205) 104 (1,009) 102
Loss on early
extinguishment of debt 2 124 2 124
Total (gains) losses on
derivatives, net 32 311 (115) 610
Operating portion of net
cash received (paid) in
settlement of derivative
instruments 13 60 5 165
Other 74 88 157 203
Changes in assets and
liabilities (714) 548 (280) 105
--------------------- ---- --- ---- ---
Net Cash Provided by
(Used in) Operating
Activities* $857 $1,229 $1,980 $1,092
-------------------- ---- ------ ------ ------
Net Cash Provided by
(Used in) Investing
Activities $(506) $8 $1,216 $(965)
-------------------- ----- --- ------ -----
Net Cash Provided by
(Used in) Financing
Activities $(174) $(2,790) $(372) $329
-------------------- ----- ------- ----- ----
Capital Expenditures** $1,210 $728 $2,465 $1,624
--------------------- ------ ---- ------ ------
* Restructuring charges (excluding
noncash share-based compensation)
were $18 million for the quarter
ended June 30, 2017, $44 million
for the quarter ended June 30,
2016, $17 million for the six
months ended June 30, 2017, and
$224 million for the six months
ended June 30, 2016. Cash payments
for restructuring charges were $31
million for the quarter ended June
30, 2017, $103 million for the
quarter ended June 30, 2016, $50
million for the six months ended
June 30, 2017, and $182 million for
the six months ended June 30, 2016.
** Includes Western Gas Partners, LP
(WES) capital expenditures of $151
million for the quarter ended June
30, 2017, and $120 million for the
quarter ended June 30, 2016, $437
million for the six months ended
June 30, 2017, and $260 million for
the six months ended June 30, 2016.
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Six Months Ended
Summary Financial Information June 30, June 30,
millions except per-share amounts 2017 2016 2017 2016
--------------------------------- ---- ---- ---- ----
Consolidated Statements of Income
---------------------------------
Revenues and Other
------------------
Oil sales $1,422 $1,125 $3,085 $1,975
Natural-gas sales 319 320 821 686
Natural-gas liquids sales 214 235 503 413
Gathering, processing, and marketing sales 464 305 908 545
Gains (losses) on divestitures and other, net 297 (70) 1,166 (30)
--------------------------------------------- --- --- ----- ---
Total 2,716 1,915 6,483 3,589
----- ----- ----- ----- -----
Costs and Expenses
------------------
Oil and gas operating 233 202 491 410
Oil and gas transportation 229 246 478 488
Exploration 535 76 1,620 202
Gathering, processing, and marketing 359 252 710 467
General and administrative 291 305 560 754
Depreciation, depletion, and amortization 1,037 984 2,152 2,133
Other taxes 135 157 290 274
Impairments 10 18 383 34
Other operating expense 12 7 34 23
----------------------- --- --- --- ---
Total 2,841 2,247 6,718 4,785
----- ----- ----- ----- -----
Operating Income (Loss) (125) (332) (235) (1,196)
---------------------- ---- ---- ---- ------
Other (Income) Expense
----------------------
Interest expense 227 217 450 437
Loss on early extinguishment of debt 2 124 2 124
(Gains) losses on derivatives, net 32 307 (115) 604
Other (income) expense, net (14) (55) (22) (55)
--------------------------- --- --- --- ---
Total 247 593 315 1,110
----- --- --- --- -----
Income (Loss) Before Income Taxes (372) (925) (550) (2,306)
--------------------------------- ---- ---- ---- ------
Income tax expense (benefit) (38) (314) 59 (697)
--------------------------- --- ---- --- ----
Net Income (Loss) (334) (611) (609) (1,609)
---------------- ---- ---- ---- ------
Net income (loss) attributable to noncontrolling interests 81 81 124 117
---------------------------------------------------------- --- --- --- ---
Net Income (Loss) Attributable to Common Stockholders $(415) $(692) $(733) $(1,726)
----------------------------------------------------- ----- ----- ----- -------
Per Common Share
----------------
Net income (loss) attributable to common stockholders-basic $(0.76) $(1.36) $(1.34) $(3.39)
Net income (loss) attributable to common stockholders-diluted $(0.76) $(1.36) $(1.34) $(3.39)
------------------------------------------------------------- ------ ------ ------ ------
Average Number of Common Shares Outstanding-Basic 552 510 552 510
------------------------------------------------- --- --- --- ---
Average Number of Common Shares Outstanding-Diluted 552 510 552 510
--------------------------------------------------- --- --- --- ---
Exploration Expense
-------------------
Dry hole expense $367 $(5) $843 $6
Impairments of unproved properties 87 15 623 39
Geological and geophysical, exploration overhead, and other
expense 81 66 154 157
Total $535 $76 $1,620 $202
----- ---- --- ------ ----
Anadarko Petroleum Corporation
(Unaudited)
June 30, December 31,
millions 2017 2016
-------- ---- ----
Condensed Balance Sheets
------------------------
Cash and cash equivalents $6,008 $3,184
Accounts receivable, net of
allowance 1,654 1,728
Other current assets 322 354
Net properties and equipment 28,516 32,168
Other assets 2,134 2,226
Goodwill and other intangible
assets 5,714 5,904
----- -----
Total Assets $44,348 $45,564
------------ ------- -------
Short-term debt 44 42
Other current liabilities 3,110 3,286
Long-term debt 15,436 15,281
Deferred income taxes 4,232 4,324
Asset retirement obligations 2,717 2,802
Other long-term liabilities 4,153 4,332
Common stock 57 57
Paid-in capital 11,941 11,875
Retained earnings 887 1,704
Treasury stock (1,070) (1,033)
Accumulated other comprehensive
income (loss) (343) (391)
Total stockholders' equity 11,472 12,212
-------------------------- ------ ------
Noncontrolling interests 3,184 3,285
------------------------ ----- -----
Total Equity 14,656 15,497
------------ ------ ------
Total Liabilities and Equity $44,348 $45,564
---------------------------- ------- -------
Capitalization
--------------
Total debt $15,480 $15,323
Total equity 14,656 15,497
------------ ------ ------
Total $30,136 $30,820
----- ------- -------
Capitalization Ratios
---------------------
51% 50%
Total debt
49% 50%
Total equity
------------
Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
Average Daily Sales Volumes Sales Volumes Average Sales Price
Oil Natural Gas NGLs Oil Natural
Gas NGLs Oil Natural Gas NGLs
MBbls/d MMcf/d MBbls/d MMBbls Bcf MMBbls Per Bbl Per Mcf Per Bbl
------- ------ ------- ------ --- ------ ------- ------- -------
Quarter Ended June 30, 2017
United States 243 1,238 89 22 113 8 $46.68 $2.84 $24.82
Algeria 59 - 5 6 - - 48.20 - 30.48
Other International 29 - - 2 - - 49.44 - -
--- --- --- --- --- --- ----- --- ---
Total 331 1,238 94 30 113 8 $47.19 $2.84 $25.14
--- ----- --- --- --- --- ------ ----- ------
Quarter Ended June 30, 2016
United States 227 2,188 126 20 199 12 $40.25 $1.61 $19.42
Algeria 59 - 5 5 - 1 46.65 - 24.13
Other International 10 - - 1 - - 47.37 - -
--- --- --- --- --- --- ----- --- ---
Total 296 2,188 131 26 199 13 $41.77 $1.61 $19.60
--- ----- --- --- --- --- ------ ----- ------
Six Months Ended June 30, 2017
United States 256 1,547 100 46 280 18 $48.01 $2.93 $25.79
Algeria 64 - 6 12 - 1 50.89 - 34.36
Other International 29 - - 5 - - 51.57 - -
--- --- --- --- --- --- ----- --- ---
Total 349 1,547 106 63 280 19 $48.84 $2.93 $26.27
--- ----- --- --- --- --- ------ ----- ------
Six Months Ended June 30, 2016
United States 229 2,245 125 41 409 23 $34.07 $1.68 $17.24
Algeria 62 - 5 11 - 1 40.35 - 23.43
Other International 14 - - 3 - - 37.55 - -
--- --- --- --- --- --- ----- --- ---
Total 305 2,245 130 55 409 24 $35.51 $1.68 $17.49
--- ----- --- --- --- --- ------ ----- ------
Average Daily Sales
Volumes Sales Volumes
MBOE/d MMBOE
Quarter Ended June
30, 2017 631 57
Quarter Ended June
30, 2016 792 72
Six Months Ended June
30, 2017 713 129
Six Months Ended June
30, 2016 809 147
Sales Revenue and Commodity Derivatives
Sales Net Cash Received (Paid) from Settlement of
Commodity
Derivatives
millions Oil Natural Gas NGLs Oil Natural Gas NGLs
--- ----------- ---- --- ----------- ----
Quarter Ended June 30, 2017
United States $1,032 $319 $200 $14 $(1) $ -
Algeria 260 - 14 - - -
Other International 130 - - - - -
--- --- --- --- --- ---
Total $1,422 $319 $214 $14 $(1) $ -
------ ---- ---- --- --- --- ---
Quarter Ended June 30, 2016
United States $830 $320 $223 $60 $2 $(2)
Algeria 252 - 12 - - -
Other International 43 - - - - -
--- --- --- --- --- ---
Total $1,125 $320 $235 $60 $2 $(2)
------ ---- ---- --- --- ---
Six Months Ended June 30, 2017
United States $2,223 $821 $467 $15 $(5) $(3)
Algeria 594 - 36 - - -
Other International 268 - - - - -
--- --- --- --- --- ---
Total $3,085 $821 $503 $15 $(5) $(3)
------ ---- ---- --- --- ---
Six Months Ended June 30, 2016
United States $1,421 $686 $390 $148 $15 $ -
Algeria 458 - 23 - - -
Other International 96 - - - - -
--- --- --- --- --- ---
Total $1,975 $686 $413 $148 $15 $ -
------ ---- ---- ---- --- --- ---
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 24, 2017
Note: Guidance excludes 2017 sales volumes associated with the Eagleford, Marcellus, West Chalk/Eaglebine, and Utah CBM divestitures.
3rd-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
Units Units
Total Sales Volumes (MMBOE) 58 - 60 231 - 235
Total Sales Volumes (MBOE/
d) 630 - 652 633 - 644
Oil (MBbl/d) 355 - 361 346 - 351
United States 266 - 270 262 - 265
Algeria 63 - 64 59 - 60
Ghana 26 - 27 25 - 26
Natural Gas (MMcf/d)
United States 1,085 - 1,120 1,140 - 1,165
Natural Gas Liquids (MBbl/
d)
United States 91 - 95 91 - 93
Algeria 4 - 5 5 - 6
$ / Unit $ / Unit
Price Differentials vs
NYMEX (w/o hedges)
Oil ($/Bbl) (3.50) - 0.50 (3.50) - 0.50
United States (4.00) - - (4.00) - -
Algeria (2.00) - 2.00 (2.00) - 2.00
Ghana (2.00) - 2.00 (2.00) - 2.00
Natural Gas ($/Mcf)
United States (0.50) - (0.30) (0.40) - (0.20)
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 24, 2017
Note: Guidance excludes items affecting comparability.
3rd-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
$ MM $ MM
Other Revenues
Marketing and Gathering Margin 115 - 125 415 - 435
Minerals and Other 45 - 65 200 - 220
$ / BOE $ / BOE
Costs and Expenses
Oil & Gas Direct Operating 4.45 - 4.65 3.80 - 4.30
Oil & Gas Transportation 3.40 - 3.60 3.55 - 3.70
Depreciation, Depletion, and
Amortization 18.90 - 19.15 17.85 - 17.95
Production Taxes (% of Product
Revenue) 7.0% - 8.0% 6.5% - 7.5%
$ MM $ MM
General and Administrative
(excludes restructuring charges) 260 - 280 1,000 - 1,050
Other Operating Expense 120 - 130 160 - 170
Exploration Expense
Non-Cash 145 - 165 885 - 985
Cash 65 - 85 275 - 295
Interest Expense (net) 220 - 235 895 - 915
Other (Income) Expense (15) - (5) (40) - (25)
Taxes
Algeria (100% Current) 60% - 70% 60% - 70%
Rest of Company ((200)% Current/
300% Deferred for Q3 and 20% - 30% 20% - 30%
(100)% Current/200% Deferred for
Total Year)
Noncontrolling Interest 50 - 60 235 - 255
Avg. Shares Outstanding (MM)
Basic 552 - 554 552 - 554
Diluted 552 - 554 553 - 555
Capital Investment (Excluding
Western Gas Partners, LP) $ MM $ MM
APC Capital Expenditures 1,100 - 1,200 4,200 - 4,400
Anadarko Petroleum Corporation
Commodity Hedge Positions
As of July 24, 2017
Weighted Average Price per barrel
Volume Floor Sold Floor Purchased Ceiling Sold
(MBbls/d)
---------
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 857 $2.10 $2.85 $3.64
2018 250 $2.00 $2.75 $3.54
Interest-Rate Derivatives
As of July 24, 2017
Instrument Notional Amt. Reference Period Mandatory Rate Paid Rate Received
Termination Date
--- ----------------
Swap $550 Million Sept. 2016 - 2046 Sept. 2020 6.418% 3M LIBOR
Swap $250 Million Sept. 2016 - 2046 Sept. 2022 6.809% 3M LIBOR
Swap $200 Million Sept. 2017 - 2047 Sept. 2018 6.049% 3M LIBOR
Swap $100 Million Sept. 2017 - 2047 Sept. 2020 6.891% 3M LIBOR
Swap $250 Million Sept. 2017 - 2047 Sept. 2021 6.570% 3M LIBOR
Swap $250 Million Sept. 2017 - 2047 Sept. 2023 6.761% 3M LIBOR
---- ------------ ----------------- ---------- ----- --------
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes
Quarter Ended June 30, 2017 Quarter Ended June 30, 2016
Oil Natural NGLs Total Oil Natural NGLs Total
Gas MBbls/d MBOE/d Gas MBbls/d MBOE/d
MMcf/d MMcf/d
MBbls/d MBbls/d
-------- --------
U.S. Onshore 115 1,042 79 368 123 1,093 76 382
Deepwater Gulf of
Mexico 113 109 9 140 56 73 6 74
International and
Alaska 99 - 5 104 81 - 5 86
Same-Store Sales 327 1,151 93 612 260 1,166 87 542
--- ----- --- --- --- ----- --- ---
Divestitures* 4 87 1 19 36 1,022 44 250
--- --- --- --- --- ----- --- ---
Total 331 1,238 94 631 296 2,188 131 792
--- ----- --- --- --- ----- --- ---
Six Months Ended June 30, 2017 Six Months Ended June 30, 2016
Oil Natural NGLs Total Oil Natural NGLs Total
Gas MBbls/d MBOE/d Gas MBbls/d MBOE/d
MMcf/d MMcf/d
MBbls/d MBbls/d
-------- --------
U.S. Onshore 116 1,078 83 379 123 1,094 73 378
Deepwater Gulf of
Mexico 119 119 10 149 57 78 7 77
International and
Alaska 104 - 6 110 87 - 5 92
Same-Store Sales 339 1,197 99 638 267 1,172 85 547
--- ----- --- --- --- ----- --- ---
Divestitures* 10 350 7 75 38 1,073 45 262
--- --- --- --- --- ----- --- ---
Total 349 1,547 106 713 305 2,245 130 809
--- ----- --- --- --- ----- --- ---
* Includes Eagleford,
Marcellus, Eaglebine, Utah
CBM, East Chalk, Wamsutter,
Ozona, Elm Grove, Hugoton,
Hearne, and Carthage.
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