Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ANADARKO PETROLEUM CORP | apc20171q-8xk.htm |
Exhibit 99
NEWS
ANADARKO ANNOUNCES FIRST-QUARTER
2017 RESULTS
HOUSTON, May 2, 2017 – Anadarko Petroleum Corporation (NYSE: APC) today announced its first-quarter 2017 results, reporting a net loss attributable to common stockholders of $318 million, or $0.58 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 $12 million, or $0.02 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the first quarter of 2017 was $1.12 billion.
FIRST-QUARTER HIGHLIGHTS
• | Increased total year-over-year sales volume by approximately 20 percent on a divestiture-adjusted basis(2) |
• | Achieved oil production of 353,000 barrels per day on a divestiture-adjusted basis, bolstered by record oil sales volume in the Deepwater Gulf of Mexico and Delaware Basin(2) |
• | Enhanced liquids product mix to 61 percent versus 53 percent year over year, contributing to significantly improved margins |
• | Completed Eagleford and Marcellus asset divestitures for net cash proceeds of $2.8 billion, prior to final closing adjustments |
“The first quarter of 2017 provides a clear picture of the power of our streamlined portfolio and the three ‘Ds’, with record oil sales volume, significantly improved margins and strong cash flow,” said Al Walker, Anadarko Chairman, President and CEO. “We have largely completed our divestiture program and ended the quarter with nearly $6 billion of cash on hand. These actions have increased our liquids product mix which, combined with the strengthening of commodity prices, substantially expanded our margins year over year. During the quarter, we continued to increase activity in the Delaware and DJ basins, adding six rigs to bring our current total to 21 across the U.S. onshore. In March, we also announced a 1.5-billion-barrel increase to our estimated net resources in the two basins, which now total more than 5 billion BOE.
2
This proven performance, continuing efficiency gains and financial flexibility have us well positioned to deliver a compound annual oil growth rate of better than 15 percent over the next five years at current commodity prices while spending within cash inflows.”
OPERATIONS SUMMARY
Anadarko’s first-quarter 2017 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 72 million BOE, or an average of 795,000 BOE per day. On a divestiture-adjusted basis, sales volume totaled approximately 61 million BOE, or 672,000 BOE per day.(2)
OPERATIONAL HIGHLIGHTS
During the first quarter of 2017, Anadarko continued to accelerate drilling activity in the U.S. onshore. The company achieved an all-time high for oil sales volume in the Delaware Basin, averaging approximately 31,000 barrels of oil per day. The company added five operated rigs during the quarter and has added one more subsequent to quarter-end, bringing the total number of operated rigs in the Delaware Basin to 15. The company continues to take action to establish operatorship in sections where it was not previously determined and expects these activities to result in operatorship of approximately 70 percent within the Area of Mutual Interest.
In the DJ Basin, Anadarko’s sales volume averaged 242,000 BOE per day. The company added one rig, bringing its total operated rig count to six, all drilling multi-well development pads.
In the Deepwater Gulf of Mexico, Anadarko’s sales volume more than doubled year over year to approximately 160,000 BOE per day, reflecting the benefit of last December’s property acquisition from Freeport-McMoRan and the continued strong performance at Lucius and Caesar/Tonga. The company continued to advance its hub-and-spoke opportunities, with field production at K2 reaching a nine-year record. Anadarko also drilled the first development well at Horn Mountain encountering more than 70 net feet of oil pay and expects to bring it on line later this year. In addition, the Calpurnia exploration well encountered nearly 60 net feet of oil pay in Miocene-aged sands. Calpurnia is expected to be tied back to one of Anadarko’s nearby operated facilities in the Green Canyon protraction area. Anadarko recently completed drilling operations at the Shenandoah-6 appraisal and sidetrack well, which did not encounter the oil-water contact in the eastern portion of the field. The company has currently suspended appraisal activity in the field while it evaluates the path forward.
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Internationally, the company increased sales volume by approximately 17 percent year over year, driven by oil volumes from the TEN project offshore Ghana, which achieved first oil in August 2016. During the quarter, Anadarko also announced the Purple Angel discovery offshore Colombia, which is located approximately three miles from its previously announced Kronos discovery. Subsequent to quarter-end, the company made its third discovery offshore Colombia at the Gorgon prospect, which encountered 260-360 net feet of natural gas pay. The drillship in Colombia will be mobilized to West Africa in the second quarter to continue the company’s exploration and appraisal program offshore Côte d’Ivoire.
OPERATIONS REPORT
For additional details on Anadarko’s first-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report 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, May 3, 2017, at 8 a.m. Central (9 a.m. Eastern) to discuss first-quarter results. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 3348513. 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 table for a reconciliation of divestiture-adjusted volumes, which are intended to present performance of Anadarko’s continuing asset base, giving effect to recent divestitures.
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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; 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 timely complete and commercially operate the projects and drilling prospects identified in this news release. 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 U.S. 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. We may use terms in this presentation, such as “estimated net resources,” and similar terms and quantities of “estimated proved reserves” using underlying management assumptions that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. These quantities may not constitute "reserves" within the meaning of the SEC’s rules. Estimates and drilling locations have not been risked by our management. Actual quantities that may be ultimately recovered from our interests may differ substantially. Factors affecting ultimate recovery include the scope of our ongoing drilling program, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors; and our actual drilling results, including geological and mechanical factors affecting recovery rates. Such estimates may change significantly as development of our oil and gas assets provide additional data.
U.S. Investors are urged to consider closely the oil and gas disclosures in our Form 10-K for the year ended December 31, 2016, File No. 001-08968, available from us at www.anadarko.com or by writing to us at: Anadarko
Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380 Attn: Investor Relations. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
# # #
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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
Jim Grant, james.grant@anadarko.com, 832.636.8320
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
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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 March 31, 2017 | ||||||||||||
Before | After | Per Share | ||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
Net income (loss) attributable to common (GAAP) | $ | (318 | ) | $ | (0.58 | ) | ||||||
Adjustments for certain items affecting comparability | ||||||||||||
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* | $ | 155 | 99 | 0.18 | ||||||||
Gains (losses) on divestitures, net | 804 | 509 | 0.92 | |||||||||
Impairments | ||||||||||||
Producing and general properties | (373 | ) | (237 | ) | (0.43 | ) | ||||||
Exploration assets | (532 | ) | (338 | ) | (0.61 | ) | ||||||
Change in uncertain tax positions (FIN 48) | — | (21 | ) | (0.04 | ) | |||||||
Certain items affecting comparability | $ | 54 | 12 | 0.02 | ||||||||
Adjusted net income (loss) (Non-GAAP) | $ | (330 | ) | $ | (0.60 | ) | ||||||
* | Includes $12 million related to interest-rate derivatives, $141 million related to commodity derivatives, and $2 million related to gathering, processing, and marketing sales. |
Quarter Ended March 31, 2016 | ||||||||||||
Before | After | Per Share | ||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
Net income (loss) attributable to common stockholders (GAAP) | $ | (1,034 | ) | $ | (2.03 | ) | ||||||
Adjustments for certain items affecting comparability | ||||||||||||
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* | $ | (404 | ) | (255 | ) | (0.50 | ) | |||||
Gains (losses) on divestitures, net | 2 | 1 | — | |||||||||
Impairments | (16 | ) | (10 | ) | (0.02 | ) | ||||||
Restructuring charges | (203 | ) | (128 | ) | (0.25 | ) | ||||||
Change in uncertain tax positions (FIN 48) | — | (73 | ) | (0.14 | ) | |||||||
Certain items affecting comparability | $ | (621 | ) | (465 | ) | (0.91 | ) | |||||
Adjusted net income (loss) (Non-GAAP) | $ | (569 | ) | $ | (1.12 | ) | ||||||
* | Includes $(325) million related to interest-rate derivatives, $(75) million related to commodity derivatives, and $(4) million related to gathering, processing, and marketing sales. |
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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.
March 31, 2017 | |||||||||||||
Anadarko | |||||||||||||
Anadarko | WGP* | excluding | |||||||||||
millions | Consolidated | Consolidated | WGP | ||||||||||
Total debt (GAAP) | $ | 15,326 | $ | 3,120 | $ | 12,206 | |||||||
Less cash and cash equivalents | 5,831 | 123 | 5,708 | ||||||||||
Net debt (Non-GAAP) | $ | 9,495 | $ | 2,997 | $ | 6,498 | |||||||
Anadarko | |||||||||||||
Anadarko | excluding | ||||||||||||
millions | Consolidated | WGP | |||||||||||
Net debt | $ | 9,495 | $ | 6,498 | |||||||||
Total equity | 15,079 | 11,856 | |||||||||||
Adjusted capitalization | $ | 24,574 | $ | 18,354 | |||||||||
Net debt to adjusted capitalization ratio | 39 | % | 35 | % | |||||
* | 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. |
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Anadarko Petroleum Corporation
Cash Flow Information
(Unaudited)
Quarter Ended | |||||||
March 31, | |||||||
millions | 2017 | 2016 | |||||
Cash Flows from Operating Activities | |||||||
Net income (loss) | $ | (275 | ) | $ | (998 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||
Depreciation, depletion, and amortization | 1,115 | 1,149 | |||||
Deferred income taxes | (660 | ) | (413 | ) | |||
Dry hole expense and impairments of unproved properties | 1,012 | 35 | |||||
Impairments | 373 | 16 | |||||
(Gains) losses on divestitures, net | (804 | ) | (2 | ) | |||
Total (gains) losses on derivatives, net | (147 | ) | 299 | ||||
Operating portion of net cash received (paid) in settlement of derivative instruments | (8 | ) | 105 | ||||
Other | 83 | 115 | |||||
Changes in assets and liabilities | 434 | (443 | ) | ||||
Net Cash Provided by (Used in) Operating Activities* | $ | 1,123 | $ | (137 | ) | ||
Net Cash Provided by (Used in) Investing Activities | $ | 1,722 | $ | (973 | ) | ||
Net Cash Provided by (Used in) Financing Activities | $ | (198 | ) | $ | 3,119 | ||
Capital Expenditures** | $ | 1,255 | $ | 896 | |||
* | Restructuring charges (excluding share-based compensation) were $180 million for the quarter ended March 31, 2016. Cash payments for restructuring charges were $19 million for the quarter ended March 31, 2017, and $79 million for the quarter ended March 31, 2016. |
** | Includes Western Gas Partners, LP (WES) capital expenditures of $286 million for the quarter ended March 31, 2017, and $140 million for the quarter ended March 31, 2016. |
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Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended | |||||||
Summary Financial Information | March 31, | ||||||
millions except per-share amounts | 2017 | 2016 | |||||
Consolidated Statements of Income | |||||||
Revenues and Other | |||||||
Oil sales | $ | 1,663 | $ | 850 | |||
Natural-gas sales | 502 | 366 | |||||
Natural-gas liquids sales | 289 | 178 | |||||
Gathering, processing, and marketing sales | 444 | 240 | |||||
Gains (losses) on divestitures and other, net | 869 | 40 | |||||
Total | 3,767 | 1,674 | |||||
Costs and Expenses | |||||||
Oil and gas operating | 258 | 208 | |||||
Oil and gas transportation | 249 | 242 | |||||
Exploration | 1,085 | 126 | |||||
Gathering, processing, and marketing | 351 | 215 | |||||
General and administrative | 269 | 449 | |||||
Depreciation, depletion, and amortization | 1,115 | 1,149 | |||||
Other taxes | 155 | 117 | |||||
Impairments | 373 | 16 | |||||
Other operating expense | 22 | 16 | |||||
Total | 3,877 | 2,538 | |||||
Operating Income (Loss) | (110 | ) | (864 | ) | |||
Other (Income) Expense | |||||||
Interest expense | 223 | 220 | |||||
(Gains) losses on derivatives, net | (147 | ) | 297 | ||||
Other (income) expense, net | (8 | ) | — | ||||
Total | 68 | 517 | |||||
Income (Loss) Before Income Taxes | (178 | ) | (1,381 | ) | |||
Income tax expense (benefit) | 97 | (383 | ) | ||||
Net Income (Loss) | (275 | ) | (998 | ) | |||
Net income (loss) attributable to noncontrolling interests | 43 | 36 | |||||
Net Income (Loss) Attributable to Common Stockholders | $ | (318 | ) | $ | (1,034 | ) | |
Per Common Share | |||||||
Net income (loss) attributable to common stockholders—basic | $ | (0.58 | ) | $ | (2.03 | ) | |
Net income (loss) attributable to common stockholders—diluted | $ | (0.58 | ) | $ | (2.03 | ) | |
Average Number of Common Shares Outstanding—Basic | 551 | 509 | |||||
Average Number of Common Shares Outstanding—Diluted | 551 | 509 | |||||
Exploration Expense | |||||||
Dry hole expense | $ | 476 | $ | 11 | |||
Impairments of unproved properties | 537 | 24 | |||||
Geological and geophysical expense | 37 | 37 | |||||
Exploration overhead and other | 35 | 54 | |||||
Total | $ | 1,085 | $ | 126 | |||
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Anadarko Petroleum Corporation
(Unaudited)
March 31, | December 31, | ||||||||||
millions | 2017 | 2016 | |||||||||
Condensed Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 5,831 | $ | 3,184 | |||||||
Accounts receivable, net of allowance | 1,577 | 1,728 | |||||||||
Other current assets | 299 | 354 | |||||||||
Net properties and equipment | 29,065 | 32,168 | |||||||||
Other assets | 2,182 | 2,226 | |||||||||
Goodwill and other intangible assets | 5,739 | 5,904 | |||||||||
Total Assets | $ | 44,693 | $ | 45,564 | |||||||
Short-term debt | 42 | 42 | |||||||||
Other current liabilities | 3,720 | 3,286 | |||||||||
Long-term debt | 15,284 | 15,281 | |||||||||
Deferred income taxes | 3,664 | 4,324 | |||||||||
Asset retirement obligations | 2,684 | 2,802 | |||||||||
Other long-term liabilities | 4,220 | 4,332 | |||||||||
Common stock | 57 | 57 | |||||||||
Paid-in capital | 11,914 | 11,875 | |||||||||
Retained earnings | 1,330 | 1,704 | |||||||||
Treasury stock | (1,054 | ) | (1,033 | ) | |||||||
Accumulated other comprehensive income (loss) | (391 | ) | (391 | ) | |||||||
Total stockholders’ equity | 11,856 | 12,212 | |||||||||
Noncontrolling interests | 3,223 | 3,285 | |||||||||
Total Equity | 15,079 | 15,497 | |||||||||
Total Liabilities and Equity | $ | 44,693 | $ | 45,564 | |||||||
Capitalization | |||||||||||
Total debt | $ | 15,326 | $ | 15,323 | |||||||
Total equity | 15,079 | 15,497 | |||||||||
Total | $ | 30,405 | $ | 30,820 | |||||||
Capitalization Ratios | |||||||||
Total debt | 50 | % | 50 | % | |||||
Total equity | 50 | % | 50 | % | |||||
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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 March 31, 2017 | |||||||||||||||||||||||||||||
United States | 269 | 1,859 | 112 | 24 | 167 | 10 | $ | 49.23 | $ | 3.00 | $ | 26.57 | |||||||||||||||||
Algeria | 70 | — | 6 | 6 | — | 1 | 53.20 | — | 37.57 | ||||||||||||||||||||
Other International | 28 | — | — | 3 | — | — | 53.77 | — | — | ||||||||||||||||||||
Total | 367 | 1,859 | 118 | 33 | 167 | 11 | $ | 50.34 | $ | 3.00 | $ | 27.17 | |||||||||||||||||
Quarter Ended March 31, 2016 | |||||||||||||||||||||||||||||
United States | 232 | 2,303 | 122 | 21 | 210 | 11 | $ | 28.04 | $ | 1.75 | $ | 14.98 | |||||||||||||||||
Algeria | 65 | — | 6 | 6 | — | — | 34.62 | — | 22.78 | ||||||||||||||||||||
Other International | 18 | — | — | 2 | — | — | 32.27 | — | — | ||||||||||||||||||||
Total | 315 | 2,303 | 128 | 29 | 210 | 11 | $ | 29.65 | $ | 1.75 | $ | 15.32 | |||||||||||||||||
Average Daily Sales Volumes MBOE/d | Sales Volumes MMBOE | ||||||||||||||||||||||||||||
Quarter Ended March 31, 2017 | 795 | 72 | |||||||||||||||||||||||||||
Quarter Ended March 31, 2016 | 827 | 75 | |||||||||||||||||||||||||||
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 March 31, 2017 | ||||||||||||||||||||||||
United States | $ | 1,191 | $ | 502 | $ | 267 | $ | 1 | $ | (4 | ) | $ | (3 | ) | ||||||||||
Algeria | 334 | — | 22 | — | — | — | ||||||||||||||||||
Other International | 138 | — | — | — | — | — | ||||||||||||||||||
Total | $ | 1,663 | $ | 502 | $ | 289 | $ | 1 | $ | (4 | ) | $ | (3 | ) | ||||||||||
Quarter Ended March 31, 2016 | ||||||||||||||||||||||||
United States | $ | 591 | $ | 366 | $ | 167 | $ | 88 | $ | 13 | $ | 2 | ||||||||||||
Algeria | 206 | — | 11 | — | — | — | ||||||||||||||||||
Other International | 53 | — | — | — | — | — | ||||||||||||||||||
Total | $ | 850 | $ | 366 | $ | 178 | $ | 88 | $ | 13 | $ | 2 | ||||||||||||
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Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of May 2, 2017 | ||||||||||||||
Note: Guidance excludes 2017 sales volumes associated with the Eagleford and Marcellus divestitures. | ||||||||||||||
2nd-Qtr | Full-Year | |||||||||||||
Guidance (see Note) | Guidance (see Note) | |||||||||||||
Units | Units | |||||||||||||
Total Sales Volumes (MMBOE) | 57 | — | 59 | 235 | — | 239 | ||||||||
Total Sales Volumes (MBOE/d) | 626 | — | 648 | 644 | — | 655 | ||||||||
Oil (MBbl/d) | 336 | — | 342 | 357 | — | 362 | ||||||||
United States | 248 | — | 252 | 273 | — | 276 | ||||||||
Algeria | 61 | — | 62 | 59 | — | 60 | ||||||||
Ghana | 27 | — | 28 | 25 | — | 26 | ||||||||
Natural Gas (MMcf/d) | ||||||||||||||
United States | 1,215 | — | 1,250 | 1,170 | — | 1,200 | ||||||||
Natural Gas Liquids (MBbl/d) | ||||||||||||||
United States | 89 | — | 93 | 91 | — | 94 | ||||||||
Algeria | 5 | — | 6 | 5 | — | 6 | ||||||||
$ / Unit | $ / Unit | |||||||||||||
Price Differentials vs NYMEX (w/o hedges) | ||||||||||||||
Oil ($/Bbl) | (4.20 | ) | — | (0.20 | ) | (4.30 | ) | — | (0.30 | ) | ||||
United States | (5.00 | ) | — | (1.00 | ) | (5.00 | ) | — | (1.00 | ) | ||||
Algeria | (2.00 | ) | — | 2.00 | (2.00 | ) | — | 2.00 | ||||||
Ghana | (2.00 | ) | — | 2.00 | (2.00 | ) | — | 2.00 | ||||||
Natural Gas ($/Mcf) | ||||||||||||||
United States | (0.50 | ) | — | (0.30 | ) | (0.40 | ) | — | (0.20 | ) | ||||
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Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of May 2, 2017 | ||||||||||||||
Note: Guidance excludes items affecting comparability. | ||||||||||||||
2nd-Qtr | Full-Year | |||||||||||||
Guidance (see Note) | Guidance (see Note) | |||||||||||||
$ MM | $ MM | |||||||||||||
Other Revenues | ||||||||||||||
Marketing and Gathering Margin | 95 | — | 105 | 400 | — | 420 | ||||||||
Minerals and Other | 40 | — | 60 | 180 | — | 200 | ||||||||
$ / BOE | $ / BOE | |||||||||||||
Costs and Expenses | ||||||||||||||
Oil & Gas Direct Operating | 4.15 | — | 4.35 | 3.90 | — | 4.40 | ||||||||
Oil & Gas Transportation | 3.40 | — | 3.60 | 3.50 | — | 3.65 | ||||||||
Depreciation, Depletion, and Amortization | 18.15 | — | 18.40 | 17.70 | — | 17.80 | ||||||||
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 | 5 | — | 10 | 30 | — | 40 | ||||||||
Exploration Expense | ||||||||||||||
Non-Cash | 95 | — | 125 | 885 | — | 985 | ||||||||
Cash | 55 | — | 75 | 235 | — | 255 | ||||||||
Interest Expense (net) | 215 | — | 230 | 880 | — | 900 | ||||||||
Other (Income) Expense | (5 | ) | — | 5 | (15 | ) | — | — | ||||||
Taxes | ||||||||||||||
Algeria (100% Deferred for Q2 and 100% Current for Total Year) | 60 | % | — | 70 | % | 60 | % | — | 70 | % | ||||
Rest of Company ((10)% Current/110% Deferred for Q2 and (150)% Current/250% Deferred for Total Year) | 25 | % | — | 35 | % | 25 | % | — | 35 | % | ||||
Noncontrolling Interest | 45 | — | 55 | 205 | — | 225 | ||||||||
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 | 1,050 | — | 1,250 | 4,500 | — | 4,700 | ||||||||
14
Anadarko Petroleum Corporation | |||||||||
Commodity Hedge Positions | |||||||||
As of May 2, 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 | ||
Interest-Rate Derivatives | |||||
As of May 2, 2017 | |||||
Instrument | Notional Amt. | Reference Period | Mandatory Termination Date | Rate Paid | Rate Received |
Swap | $500 Million | Sept. 2016 – 2046 | Sept. 2018 | 6.559% | 3M LIBOR |
Swap | $300 Million | Sept. 2016 – 2046 | Sept. 2020 | 6.509% | 3M LIBOR |
Swap | $450 Million | Sept. 2017 – 2047 | Sept. 2018 | 6.445% | 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 |
15
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes | |||||||||||||||||||||||
Quarter Ended March 31, 2017 | Quarter Ended March 31, 2016 | ||||||||||||||||||||||
Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | ||||||||||||||||
U.S. Onshore | 119 | 1,146 | 88 | 398 | 130 | 1,128 | 71 | 389 | |||||||||||||||
Deepwater Gulf of Mexico | 125 | 129 | 12 | 159 | 58 | 85 | 7 | 79 | |||||||||||||||
International and Alaska | 109 | — | 6 | 115 | 93 | — | 6 | 99 | |||||||||||||||
Same-Store Sales | 353 | 1,275 | 106 | 672 | 281 | 1,213 | 84 | 567 | |||||||||||||||
Divestitures* | 14 | 584 | 12 | 123 | 34 | 1,090 | 44 | 260 | |||||||||||||||
Total | 367 | 1,859 | 118 | 795 | 315 | 2,303 | 128 | 827 | |||||||||||||||
* | Includes East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, Carthage, Eagleford, and Marcellus. |