Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ANADARKO PETROLEUM CORP | apc20172q-8xk.htm |
Exhibit 99
NEWS
ANADARKO ANNOUNCES SECOND-QUARTER
2017 RESULTS
REDUCES FULL-YEAR ANTICIPATED CAPITAL INVESTMENTS
MAINTAINS EXPECTED OIL PRODUCTION EXIT RATES
HOUSTON, July 24, 2017 – 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
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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
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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
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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 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. |
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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.
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 | |||||||||
Net debt to adjusted capitalization ratio | 39 | % | 36 | % | |||||
* | 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 | 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. |
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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 | |||||||
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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 | |||||||||
Total debt | 51 | % | 50 | % | |||||
Total equity | 49 | % | 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 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 MBOE/d | Sales Volumes 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 | $ | — | ||||||||||||
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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 | ) | ||||
12
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 (100)% Current/200% Deferred for Total Year) | 20 | % | — | 30 | % | 20 | % | — | 30 | % | ||||
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 | ||||||||
13
Anadarko Petroleum Corporation | |||||||||
Commodity Hedge Positions | |||||||||
As of July 24, 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 | 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 Termination Date | Rate Paid | Rate Received |
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 |
14
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes | |||||||||||||||||||||||
Quarter Ended June 30, 2017 | Quarter Ended June 30, 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 | 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 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 | 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. |