ANADARKO PETROLEUM HOUSTON, Oct. 31, 2017 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its third-quarter 2017 results, reporting a net loss attributable to common stockholders of $699 million, or $1.27 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 $272 million, or $0.50 per share (diluted), on an after-tax basis.((1) )Net cash provided by operating activities in the third quarter of 2017 was $639 million.
RECENT HIGHLIGHTS
-- Announced a $2.5 billion share-repurchase program and entered into an
accelerated share repurchase (ASR) agreement to execute upon the first
$1.0 billion by year end
-- Achieved double-digit oil-volume growth over second-quarter 2017 in the
Delaware Basin, DJ Basin and deepwater Gulf of Mexico assets
-- Improved oil production mix to 57 percent versus 42 percent in the third
quarter of 2016, significantly improving margins per barrel
-- Entered into an agreement to sell the company's Moxa asset in southwest
Wyoming for approximately $350 million
-- Received clarity on the Ghana maritime boundary, enabling additional
high-margin oil development, and completed the foundational Legal and
Contractual Framework for the Mozambique LNG project
"I am very proud of the efforts exhibited by our people and the results achieved in the face of an unusually active hurricane season in the Gulf of Mexico and a continuing volatile commodity environment," said Al Walker, Anadarko Chairman, President and CEO. "We have made significant progress in shifting our production mix toward higher-value oil, which has improved our margins per barrel((2)) by about 34 percent year over year. We expect to improve our margins further as we finalize the sale of our Moxa gas asset, continue focusing investments in our high-quality oil plays, and drive greater efficiencies into the system. Although we have adjusted our full-year sales-volume guidance to reflect the impacts of hurricanes Harvey, Irma and Nate, as well as the sale of our Moxa asset, we still expect to exit 2017 with production rates of approximately 150,000 barrels of oil per day combined from the Delaware and DJ basins, and more than 130,000 barrels of oil per day from the deepwater Gulf of Mexico.
"Looking to 2018, we will continue to demonstrate financial discipline as a foundational principle," added Walker. "We will remain focused on returns by continuing to allocate upstream capital toward the higher-margin assets in our portfolio, which should generate substantial free cash flow in a $50 oil-price environment, with total capital spending, including Anadarko midstream spending on infrastructure in the Delaware Basin, inside of discretionary cash flow from operations."
OPERATIONAL HIGHLIGHTS
Anadarko's third-quarter 2017 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 58 million barrels of oil equivalent (BOE), or an average of 626,000 BOE per day.
In the Delaware Basin, Anadarko remains on track to achieve its expected exit rate of approximately 50,000 barrels of oil per day (BOPD). In the third quarter, the company achieved a new oil sales-volume record of 44,500 BOPD, while averaging 37,000 BOPD - a 13-percent increase over the second quarter of 2017. Anadarko averaged 16 rigs and six completions crews in the basin during the quarter, as it continued to focus on capturing operatorship over approximately 70 percent of its gross acreage position. Anadarko also made significant progress in applying its proven development model to the Delaware Basin, which includes building gathering and processing infrastructure to enable future growth and expanding takeaway capacity.
Anadarko also has a clear line of sight to reaching its expected exit rate of about 100,000 BOPD in the DJ Basin, where in the third quarter it achieved an oil production record of more than 90,000 BOPD, while averaging 83,000 BOPD, representing a 10-percent increase over the prior quarter. The company averaged six operated rigs and four completions crews in the basin during the quarter. The number of wells turned to sales increased by 70 percent versus the second-quarter 2017. The company continues to see strong results from its new completion design, which has been applied to more than 70 wells, the majority of which have been producing more than 150 days. These wells are demonstrating a cumulative oil uplift of more than 40 percent when compared to the previous design.
In the deepwater Gulf of Mexico, the company increased oil production by more than 10 percent relative to the second quarter of 2017, averaging 126,000 BOPD during the quarter. Production of approximately 840,000 BOE was deferred during the quarter as a result of hurricanes Harvey and Irma. The company's hub-and-spoke infrastructure continues to deliver significant value with new tiebacks at Horn Mountain and Marlin. Anadarko also added new tieback opportunities as the apparent high bidder on 10 blocks in the most recent Gulf of Mexico lease sale.
International and Alaska sales volume averaged 102,000 barrels per day, slightly less than the prior quarter due to the timing of liftings in Algeria. The International Tribunal for the Law of the Sea (ITLOS) has defined the border between Ghana and Côte d'Ivoire, which enables continued development in the TEN field. In addition, the partnership received approval from the Ghanaian government for the Jubilee full-field plan of development earlier this month, with drilling operations expected to commence in 2018. Anadarko also is continuing to generate substantial momentum with its Mozambique LNG project, having finalized the "marine concession" agreements with the Government of Mozambique during the quarter. These agreements marked the completion of the foundational Legal and Contractual Framework. Subsequent to quarter end, Anadarko also reached a 20-year Sale and Purchase Agreement (SPA) for 2.6 million tonnes of LNG per annum with PTT Public Company Limited of Thailand. The SPA is pending approval by the Government of Thailand.
OPERATIONS REPORT
For additional details on Anadarko's third-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL SUMMARY
Anadarko ended the third quarter of 2017 with $5.25 billion of cash on hand. In September, the company announced a $2.5 billion share-repurchase program, which is authorized to extend through the end of 2018. Subsequently, Anadarko entered into an ASR agreement to complete the repurchase of $1.0 billion of shares prior to the end of 2017. In October, Anadarko entered into a definitive agreement to sell its Moxa asset in southwest Wyoming for approximately $350 million.
CONFERENCE CALL TOMORROW AT 8:00 A.M. CDT, 9:00 A.M. EDT
Anadarko will host a conference call on Wednesday, Nov. 1, 2017, at 8 a.m. Central (9 a.m. Eastern) to discuss third-quarter results. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 2812178. 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.
(2) See the accompanying Adjusted
EBITDAX (Margin) table for a
reconciliation of GAAP to the non-
GAAP financial measure and a
statement indicating why management
believes the non-GAAP financial
measure provides useful information
for investors.
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 realize its expectations regarding performance; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to finalize the capital program for 2018; to meet financial and operating guidance and achieve the production levels identified in this news release; to meet the long-term goals identified in this news release; to consummate the transactions described in this release; to successfully complete the share-repurchase program; to successfully drill, complete, test and produce the wells identified in this news release; to timely complete and commercially operate the projects, infrastructure 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 September 30, 2017
Before After Per Share
millions except per-share
amounts Tax Tax (diluted)
------------------------- --- --- --------
Net income (loss) attributable
to common stockholders (GAAP) $(699) $(1.27)
Adjustments for certain items
affecting comparability
Total gains (losses) on
derivatives, net, less net
cash from settlement of
commodity derivatives* $(98) (62) (0.11)
Gains (losses) on
divestitures, net (194) (123) (0.23)
Impairments -exploration
assets (106) (82) (0.15)
Change in uncertain tax
positions (5) (0.01)
Certain items affecting
comparability $(398) (272) (0.50)
----------------------- ----- ---- -----
Adjusted net income (loss)
(Non-GAAP) $(427) $(0.77)
-------------------------- ----- ------
* Includes $(39) million related
to interest-rate derivatives
and $(59) million related to
commodity derivatives.
Quarter Ended September 30, 2016
Before After Per Share
millions except per-
share amounts Tax Tax (diluted)
-------------------- --- --- --------
Net income (loss)
attributable to common
stockholders (GAAP) $(830) $(1.61)
Adjustments for certain
items affecting
comparability
Total gains (losses) on
derivatives, net, less
net cash from
settlement of
commodity derivatives* $(88) (56) (0.11)
Gains (losses) on
divestitures, net (414) (261) (0.51)
Impairments -producing
properties (27) (17) (0.03)
Restructuring charges (112) (71) (0.14)
Tax indemnification 39 25 0.05
Change in uncertain tax
positions - 9 0.02
Certain items affecting
comparability $(602) (371) (0.72)
----------------------- ----- ---- -----
Adjusted net income
(loss) (Non-GAAP) $(459) $(0.89)
------------------- ----- ------
* Includes $(84) million related
to interest-rate derivatives
and $(4) million related to
commodity derivatives.
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Management believes that the presentation of Adjusted EBITDAX (Margin) provides information useful in
assessing the Company's operating and financial performance across periods.
Quarter Ended
September 30,
millions 2017 2016
-------- ---- ----
Net income (loss)
attributable to
common stockholders
(GAAP) $(699) $(830)
Interest expense 230 220
Income tax expense
(benefit) (425) (260)
DD&A 1,083 1,069
Exploration expense 751 304
(Gains) losses on
divestitures, net 194 414
Impairments - 27
Total (gains) losses
on derivatives, net,
less net cash from
settlement of
commodity
derivatives 98 88
Restructuring charges 3 112
--------------------- --- ---
Consolidated Adjusted
EBITDAX (Margin)
(Non-GAAP) $1,235 $1,144
--------------------- ------ ------
Total barrels of oil
equivalent (BOE) 58 72
-------------------- --- ---
Consolidated Adjusted
EBITDAX (Margin) per
BOE $21.29 $15.89
--------------------- ------ ------
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.
September 30, 2017
Anadarko
Anadarko WGP* excluding
millions Consolidated Consolidated WGP
-------- ------------ ------------ ---
Total debt (GAAP) $15,573 $3,372 $12,201
Less cash and cash
equivalents 5,251 153 5,098
------------------ ----- --- -----
Net debt (Non-GAAP) $10,322 $3,219 $7,103
------------------ ------- ------ ------
Anadarko
Anadarko excluding
millions Consolidated WGP
-------- ------------ ---
Net debt $10,322 $7,103
Total equity 13,922 10,782
------------ ------ ------
Adjusted
capitalization $24,244 $17,885
--------------- ------- -------
Net debt to adjusted
capitalization ratio 43% 40%
--------------------- --- ---
* 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 Nine Months Ended
September 30, September 30,
millions 2017 2016 2017 2016
-------- ---- ---- ---- ----
Cash Flows from Operating Activities
------------------------------------
Net income (loss) $(641) $(747) $(1,250) $(2,356)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities
Depreciation, depletion,
and amortization 1,083 1,069 3,235 3,202
Deferred income taxes (854) (301) (1,026) (1,121)
Dry hole expense and
impairments of unproved
properties 678 255 2,144 300
Impairments - 27 383 61
(Gains) losses on
divestitures, net 194 414 (815) 516
Loss on early
extinguishment of debt - - 2 124
Total (gains) losses on
derivatives, net 82 24 (33) 634
Operating portion of net
cash received (paid) in
settlement of
derivative instruments 16 64 21 229
Other 68 53 225 256
Changes in assets and
liabilities 13 (73) (267) 32
--------------------- --- --- ---- ---
Net Cash Provided by
(Used in) Operating
Activities* $639 $785 $2,619 $1,877
-------------------- ---- ---- ------ ------
Net Cash Provided by
(Used in) Investing
Activities $(1,242) $(291) $(26) $(1,256)
-------------------- ------- ----- ---- -------
Net Cash Provided by
(Used in) Financing
Activities $(155) $2,092 $(527) $2,421
-------------------- ----- ------ ----- ------
Capital Expenditures
--------------------
Exploration and
production and other $976 $586 $2,877 $1,921
Midstream - Anadarko** 131 16 258 45
Midstream - WES 224 95 661 355
Total 1,331 697 3,796 2,321
----- ----- --- ----- -----
* Restructuring charges (excluding noncash share-
based compensation) were $3 million for the
quarter ended September 30, 2017, $110 million
for the quarter ended September 30, 2016, $20
million for the nine months ended September 30,
2017, and $334 million for the nine months ended
September 30, 2016. Cash payments for
restructuring charges were $2 million for the
quarter ended September 30, 2017, $35 million
for the quarter ended September 30, 2016, $52
million for the nine months ended September 30,
2017, and $217 million for the nine months ended
September 30, 2016.
** Excludes Western Gas Partners, LP (WES).
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Nine Months Ended
Summary Financial
Information September 30, September 30,
millions except per-
share amounts 2017 2016 2017 2016
-------------------- ---- ---- ---- ----
Consolidated Statements of Income
---------------------------------
Revenues and Other
------------------
Oil sales $1,567 $1,239 $4,652 $3,214
Natural-gas sales 269 435 1,090 1,121
Natural-gas liquids
sales 265 227 768 640
Gathering, processing,
and marketing sales 509 350 1,417 895
Gains (losses) on
divestitures and other,
net (114) (358) 1,052 (388)
------------------------ ---- ---- ----- ----
Total 2,496 1,893 8,979 5,482
----- ----- ----- ----- -----
Costs and Expenses
------------------
Oil and gas operating 257 198 748 608
Oil and gas
transportation 220 256 698 744
Exploration 751 304 2,371 506
Gathering, processing,
and marketing 398 291 1,108 758
General and
administrative 280 362 840 1,116
Depreciation, depletion,
and amortization 1,083 1,069 3,235 3,202
Production, property,
and other taxes 159 148 449 422
Impairments - 27 383 61
Other operating expense 123 31 157 54
----------------------- --- --- --- ---
Total 3,271 2,686 9,989 7,471
----- ----- ----- ----- -----
Operating Income (Loss) (775) (793) (1,010) (1,989)
---------------------- ---- ---- ------ ------
Other (Income) Expense
----------------------
Interest expense 230 220 680 657
Loss on early
extinguishment of debt - - 2 124
(Gains) losses on
derivatives, net 82 25 (33) 629
Other (income) expense,
net (21) (31) (43) (86)
----------------------- --- --- --- ---
Total 291 214 606 1,324
----- --- --- --- -----
Income (Loss) Before
Income Taxes (1,066) (1,007) (1,616) (3,313)
-------------------- ------ ------ ------ ------
Income tax expense
(benefit) (425) (260) (366) (957)
------------------ ---- ---- ---- ----
Net Income (Loss) (641) (747) (1,250) (2,356)
---------------- ---- ---- ------ ------
Net income (loss)
attributable to
noncontrolling
interests 58 83 182 200
----------------- --- --- --- ---
Net Income (Loss)
Attributable to Common
Stockholders $(699) $(830) $(1,432) $(2,556)
----------------------- ----- ----- ------- -------
Per Common Share
----------------
Net income (loss)
attributable to common
stockholders-basic $(1.27) $(1.61) $(2.60) $(5.00)
Net income (loss)
attributable to common
stockholders-diluted $(1.27) $(1.61) $(2.61) $(5.00)
----------------------- ------ ------ ------ ------
Average Number of Common
Shares Outstanding-
Basic 553 517 552 512
------------------------ --- --- --- ---
Average Number of Common
Shares Outstanding-
Diluted 553 517 552 512
------------------------ --- --- --- ---
Exploration Expense
-------------------
Dry hole expense $565 $203 $1,408 $209
Impairments of unproved
properties 113 52 736 91
Geological and
geophysical,
exploration overhead,
and other expense 73 49 227 206
---------------------- --- --- --- ---
Total 751 304 2,371 506
----- --- --- ----- ---
Anadarko Petroleum Corporation
(Unaudited)
September 30, December 31,
millions 2017 2016
-------- ---- ----
Condensed Balance Sheets
------------------------
Cash and cash equivalents $5,251 $3,184
Accounts receivable, net of
allowance 1,882 1,728
Other current assets 340 354
Net properties and equipment 27,832 32,168
Other assets 2,152 2,226
Goodwill and other intangible
assets 5,671 5,904
----- -----
Total Assets $43,128 $45,564
------------ ------- -------
Short-term debt 149 42
Other current liabilities 3,534 3,286
Long-term debt 15,424 15,281
Deferred income taxes 3,378 4,324
Asset retirement obligations 2,747 2,802
Other long-term liabilities 3,974 4,332
Common stock 57 57
Paid-in capital 11,972 11,875
Retained earnings 160 1,704
Treasury stock (1,070) (1,033)
Accumulated other comprehensive
income (loss) (337) (391)
Total stockholders' equity 10,782 12,212
-------------------------- ------ ------
Noncontrolling interests 3,140 3,285
------------------------ ----- -----
Total Equity 13,922 15,497
------------ ------ ------
Total Liabilities and Equity $43,128 $45,564
---------------------------- ------- -------
Capitalization
--------------
Total debt $15,573 $15,323
Total equity 13,922 15,497
------------ ------ ------
Total $29,495 $30,820
----- ------- -------
Capitalization Ratios
---------------------
Total debt 53% 50%
Total equity 47% 50%
------------ --- ---
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 September 30, 2017
United States 266 1,086 88 25 100 9 $46.89 $2.69 $31.07
Algeria 60 - 4 6 - - 52.91 - 32.98
Other International 27 - - 2 - - 51.95 - -
--- --- --- --- --- --- ----- --- ---
Total 353 1,086 92 33 100 9 $48.31 $2.69 $31.15
--- ----- --- --- --- --- ------ ----- ------
Quarter Ended September 30, 2016
United States 233 2,003 122 22 184 11 $41.29 $2.36 $18.87
Algeria 65 - 7 7 - - 45.88 - 23.74
Other International 19 - - 1 - - 45.61 - -
--- --- --- --- --- --- ----- --- ---
Total 317 2,003 129 30 184 11 $42.49 $2.36 $19.13
--- ----- --- --- --- --- ------ ----- ------
Nine Months Ended September 30, 2017
United States 259 1,392 96 71 380 27 $47.63 $2.87 $27.43
Algeria 63 - 5 18 - 1 51.54 - 34.02
Other International 28 - - 7 - - 51.70 - -
--- --- --- --- --- --- ----- --- ---
Total 350 1,392 101 96 380 28 $48.66 $2.87 $27.77
--- ----- --- --- --- --- ------ ----- ------
Nine Months Ended September 30, 2016
United States 230 2,164 124 63 593 34 $36.52 $1.89 $17.78
Algeria 63 - 6 18 - 1 42.27 - 23.55
Other International 16 - - 4 - - 40.80 - -
--- --- --- --- --- --- ----- --- ---
Total 309 2,164 130 85 593 35 $37.91 $1.89 $18.04
--- ----- --- --- --- --- ------ ----- ------
Average Daily Sales
Volumes Sales Volumes
MBOE/d MMBOE
Quarter Ended September 30, 2017 626 58
Quarter Ended September 30, 2016 780 72
Nine Months Ended September 30, 2017 683 187
Nine Months Ended September 30, 2016 800 219
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 September 30, 2017
United States $1,145 $269 $253 $12 $4 $ -
Algeria 291 - 12 - - -
Other International 131 - - - - -
--- --- --- --- --- ---
Total $1,567 $269 $265 $12 $4 $ -
------ ---- ---- --- --- --- ---
Quarter Ended September 30, 2016
United States $884 $435 $212 $66 $(2) $(1)
Algeria 276 - 15 - - -
Other International 79 - - - - -
--- --- --- --- --- ---
Total $1,239 $435 $227 $66 $(2) $(1)
------ ---- ---- --- --- ---
Nine Months Ended September 30, 2017
United States $3,368 $1,090 $720 $27 $(1) $(3)
Algeria 885 - 48 - - -
Other International 399 - - - - -
--- --- --- --- --- ---
Total $4,652 $1,090 $768 $27 $(1) $(3)
------ ------ ---- --- --- ---
Nine Months Ended September 30, 2016
United States $2,305 $1,121 $602 $214 $13 $(1)
Algeria 734 - 38 - - -
Other International 175 - - - - -
--- --- --- --- --- ---
Total $3,214 $1,121 $640 $214 $13 $(1)
------ ------ ---- ---- --- ---
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of October 31, 2017
Note: Guidance excludes 2017 sales volumes associated with the Eagleford, Marcellus, West Chalk/Eaglebine, Utah CBM and Moxa divestitures.
4th-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
Units Units
Total Sales Volumes (MMBOE) 56 - 58 224 - 228
Total Sales Volumes (MBOE/d) 609 - 630 614 - 625
Oil (MBbl/d) 357 - 364 343 - 348
United States 279 - 283 257 - 260
Algeria 51 - 53 59 - 60
Ghana 27 - 28 27 - 28
Natural Gas (MMcf/d)
United States 1,000 - 1,035 1,065 - 1,085
Natural Gas Liquids (MBbl/d)
United States 84 - 88 87 - 90
Algeria 2 - 4 5 - 6
$ / Unit $ / Unit
Price Differentials vs NYMEX
(w/o hedges)
Oil ($/Bbl) (1.50) - 2.50 (2.75) - 1.25
United States (2.00) - 2.00 (3.00) - 1.00
Algeria - - 4.00 (2.00) - 2.00
Ghana - - 4.00 (2.00) - 2.00
Natural Gas ($/Mcf)
United States (0.40) - (0.20) (0.35) - 0.25
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of October 31, 2017
Note: Guidance excludes items affecting comparability.
4th-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
$ MM $ MM
Other Revenues
Marketing and Gathering Margin 100 - 110 410 - 420
Minerals and Other 45 - 65 280 - 300
$ / BOE $ / BOE
Costs and Expenses
Oil & Gas Direct Operating 4.40 - 4.65 3.95 - 4.30
Oil & Gas Transportation 3.50 - 3.70 3.60 - 3.80
Depreciation, Depletion, and
Amortization 19.00 - 19.20 17.75 - 17.85
Production Taxes (% of Product
Revenue) 6.0% - 7.0% 6.0% - 7.0%
$ MM $ MM
General and Administrative 240 - 260 1,060 - 1,080
Other Operating Expense 30 - 50 185 - 205
Exploration Expense
Non-Cash 10 - 40 1,445 - 1,475
Cash 65 - 85 280 - 300
Interest Expense (net) 220 - 235 900 - 915
Other (Income) Expense (25) - (15) (65) - (55)
Taxes
Algeria (100% Current) 60% - 70% 60% - 70%
Rest of Company (60% Current/40%
Deferred for Q4 and (50)% Current/
150% Deferred for Total Year) 30% - 40% 30% - 40%
Noncontrolling Interest 50 - 60 230 - 240
Avg. Shares Outstanding (MM)
Basic 534 - 538 548 - 549
Diluted 534 - 538 548 - 549
Capital Investment (Excluding Western
Gas Partners, LP) $ MM $ MM
APC Capital Expenditures 1,065 - 1,265 4,200 - 4,400
Anadarko Petroleum Corporation
Commodity Hedge Positions
As of October 31, 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 October 31, 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
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Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes
Quarter Ended September 30, 2017 Quarter Ended September 30, 2016
Oil Natural Gas NGLs Total Oil Natural Gas NGLs Total
MMcf/d MBbls/d MBOE/d MMcf/d MBbls/d MBOE/d
MBbls/d MBbls/d
-------- --------
U.S. Onshore 129 980 78 370 126 1,034 78 376
Gulf of Mexico 126 106 10 154 65 77 6 84
International and
Alaska 98 - 4 102 93 - 7 100
Same-Store Sales 353 1,086 92 626 284 1,111 91 560
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Divestitures* - - - - 33 892 38 220
--- --- --- --- --- --- --- ---
Total 353 1,086 92 626 317 2,003 129 780
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Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Oil Natural Gas NGLs Total Oil Natural Gas NGLs Total
MMcf/d MBbls/d MBOE/d MMcf/d MBbls/d MBOE/d
MBbls/d MBbls/d
-------- --------
U.S. Onshore 120 1,042 81 374 124 1,074 76 379
Gulf of Mexico 121 118 10 151 59 78 6 78
International and
Alaska 102 - 5 107 89 - 6 95
Same-Store Sales 343 1,160 96 632 272 1,152 88 552
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Divestitures* 7 232 5 51 37 1,012 42 248
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Total 350 1,392 101 683 309 2,164 130 800
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* Includes Eagleford, Marcellus,
Eaglebine, Utah CBM, East
Chalk, Wamsutter, Ozona, Elm
Grove, Hugoton, Hearne, and
Carthage.
View original content with multimedia:http://www.prnewswire.com/news-releases/anadarko-announces-third-quarter-2017-results-300546718.html
SOURCE Anadarko Petroleum Corporation
