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News Releases

Anadarko Announces 2017 Fourth-Quarter And Full-Year Results
UPDATES 2018 CAPITAL PROGRAM AND SALES-VOLUME GUIDANCE

HOUSTON, Feb. 6, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2017 fourth‑quarter results, reporting net income attributable to common stockholders of $976 million, or $1.80 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by $870 million, or $1.62 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the fourth quarter of 2017 was $1.4 billion.

For the year ended Dec. 31, 2017, Anadarko reported a net loss attributable to common stockholders of $456 million, or $0.85 per share (diluted). Full-year 2017 net cash provided by operating activities totaled $4.0 billion.

2017 HIGHLIGHTS

  • Further improved oil sales-volume product mix to 53 percent, with liquids increasing to 67 percent, contributing to a 67-percent improvement in margins per barrel(2)
  • Achieved production exit rates totaling more than 150,000 barrels of oil per day (BOPD) combined from the Delaware and DJ basins
  • Closed more than $4.0 billion of asset divestitures
  • Announced $2.5 billion share repurchase program and, by year end, repurchased 21.9 million shares for approximately $1.1 billion (average price of $48.33 per share)
  • Achieved completion of the Legal and Contractual Framework and commenced resettlement for the Mozambique LNG project

"Given the significant volatility the energy sector faced in 2017, we continued to focus on capital efficiency throughout the year by investing upstream capital within discretionary cash flow, while materially improving margins per barrel – an approach that produced very encouraging results as we concluded the year," said Al Walker, Anadarko Chairman, President and CEO. "These operational efficiencies, an improving market environment, and strong momentum provide an exciting backdrop to 2018. Our capital-investment program this year is well positioned to deliver attractive cash returns that produce healthy production growth. As we have stated previously, we will complement this capital-efficient investment plan with additional share buybacks, increases to our dividend yield, and improvements to our credit metrics, as market conditions permit, rather than materially increasing our capital expenditures to pursue greater production volume."

SALES VOLUMES AND PROVED RESERVES
Anadarko's full-year sales volumes of oil, natural gas and natural gas liquids (NGLs) totaled 245 million barrels of oil equivalent (BOE), or an average of 672,000 BOE per day. Fourth-quarter 2017 sales volumes of oil, natural gas and NGLs averaged approximately 637,000 BOE per day.

In 2017, Anadarko organically added 244 million BOE of proved reserves before the effects of price revisions. Anadarko's costs incurred were $4.1 billion. The company's oil and natural gas exploration and development costs were $4.2 billion.(2) The company estimates its proved reserves at year-end 2017 totaled 1.44 billion BOE, with 78 percent of its reserves categorized as proved developed. At year-end 2017, Anadarko's proved reserves were comprised of 63 percent liquids and 37 percent natural gas.

OPERATING HIGHLIGHTS
By year-end 2017, oil sales volumes in the Delaware Basin of West Texas surpassed 50,000 BOPD, representing a 69-percent increase over the fourth quarter of 2016. The company also made significant progress toward full development mode as it successfully concluded its drilling program to capture 70‑percent operatorship across its 240,000-net-acre position.

In the DJ Basin of northeast Colorado, Anadarko achieved record sales volumes of more than 254,000 BOE per day. Oil sales volumes surpassed 100,000 BOPD in December, driving an increase of almost 20 percent over the previous quarter. In addition, the company's new completion design implemented in 2017 increased its estimated ultimate recovery (EUR) to 690,000 BOE per well in the contiguous core, representing an increase of more than 20-percent over the previous type curve.

Gulf of Mexico sales volumes averaged 143,000 BOE per day in the fourth quarter, representing a 35-percent increase over the fourth quarter of 2016. Oil sales volumes for the quarter averaged 120,000 BOPD, a 48-percent increase over the fourth quarter of 2016, while also reflecting the impact of Hurricane Nate and the prolonged shutdown at the third-party-operated Enchilada platform.

Anadarko's international and frontier operations averaged 94,000 barrels per day during the fourth quarter of 2017, representing an 18-percent decrease relative to the fourth quarter of 2016, which was largely driven by statutory maintenance on the El Merk facility in Algeria and the timing and size of tanker liftings. Additionally, during the fourth quarter, the company made meaningful progress with its Mozambique LNG project by beginning the resettlement process to prepare the onshore location for the future LNG park.

OPERATIONS REPORT
For additional details on Anadarko's fourth-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.

FINANCIAL HIGHLIGHTS
During the year, Anadarko generated $4.0 billion of net cash provided by operating activities while investing $3.8 billion on upstream exploration and development activities.(3) The company ended 2017 with $4.6 billion of cash on hand and closed asset divestitures totaling more than $4.0 billion during the year. Subsequent to year end, Anadarko divested its non-operated interest in its Alaska assets for approximately $400 million. The transaction is subject to regulatory approval.

During the fourth quarter, approximately $1.1 billion of the company's previously announced $2.5 billion share-repurchase program was executed under an accelerated share repurchase (ASR) agreement and through open-market purchases. In February 2018, Anadarko completed a repurchase of 8.5 million shares for $500 million (average price of $58.82 per share) under an additional ASR agreement. To date, the company has completed $1.6 billion of repurchases under the program, totaling 30.4 million shares at an average price of $51.27 per share.

Subsequent to year end, the company amended both its $3.0 billion, five-year credit facility to extend the maturity date to January 2022 and its $2.0 billion, 364-day credit facility to extend the maturity date to January 2019.

2018 CAPITAL PROGRAM AND SALES-VOLUME GUIDANCE
Anadarko's 2018 guidance has been adjusted from its November 2017 news release for the divestiture of its Alaska assets and anticipated production impacts related to non-operated downtime in the Gulf of Mexico. The company expects full-year capital investments in the range of $4.1 to $4.5 billion, not including capital investments made by Western Gas Partners, LP (NYSE: WES).



2018 Capital(a)
($ Million)


2018 Total
Sales Volume(b)
(Million BOE)


2018 Oil
Sales Volume(b)
(Thousand BOPD)

November 2017 Guidance


$4,200 - $4,600


245 - 255


385 - 405

Adjustment


(100)


(7)(c)


(16)(d)

New Guidance


$4,100 - $4,500


238 - 248


370 - 390








Note: All amounts are approximate.

(a) Does not include WES capital investments.

(b) See the accompanying table for a reconciliation of divestiture-adjusted sales volume.

(c) Includes Alaska divestiture (4 million BOE) and GOM, primarily driven by non-operated downtime.

(d) Includes Alaska divestiture (11 thousand BOPD) and GOM, primarily driven by non-operated downtime.

CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host an investor conference call on Wednesday, Feb. 7, 2018, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2017 results as well as details of the company's 2018 capital program and expectations. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 4262361. 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
Twelve pages of summary financial data follow, including costs incurred, proved reserves, 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 GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.



(3)

Does not include Anadarko midstream capital investments or capital investments made by Western Gas Partners, LP (NYSE: WES).

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 2017, the company had 1.44 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 finalize year-end reserves; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to meet financial and operating guidance; to timely complete and commercially operate the projects and drilling prospects identified in this news release; to consummate the transaction described in this news release; to finalize the necessary steps to secure operatorship; to successfully complete the share repurchase program and to enter into additional programs; to increase the dividend; to reduce debt; 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
Kate Sloan, kate.sloan@anadarko.com, 832.636.2562
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089

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 December 31, 2017



Before


After


Per Share

millions except per-share amounts


Tax


Tax


(diluted)

Net income (loss) attributable to common stockholders (GAAP)




$

976



$

1.80


Adjustments for certain items affecting comparability







Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*


$

(168)



(105)



(0.20)


Gains (losses) on divestitures, net


(141)



(83)



(0.15)


Impairments







Producing properties


(25)



(16)



(0.03)


Exploration assets


(24)



(15)



(0.03)


Early termination of rig


(39)



(25)



(0.05)


Change in uncertain tax positions




(56)



(0.10)


Impact of tax reform legislation




1,170



2.18


Certain items affecting comparability


$

(397)



870



1.62


Adjusted net income (loss) (Non-GAAP)




$

106



$

0.18




*

Includes $(171) million related to commodity derivatives, $(1) million related to interest-rate derivatives, and $4 million related to gathering, processing, and marketing sales.

 



Quarter Ended December 31, 2016



Before


After


Per Share

millions except per-share amounts


Tax


Tax


(diluted)

Net income (loss) attributable to common stockholders (GAAP)




$

(515)



$

(0.94)


Adjustments for certain items affecting comparability







Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*


$

304



193



0.35


Gains (losses) on divestitures, net


(241)



(155)



(0.28)


Impairments







Producing and general properties


(166)



(101)



(0.18)


Exploration assets


(149)



(115)



(0.21)


Restructuring charges


(26)



(16)



(0.03)


Early termination of rig


(49)



(32)



(0.06)


Loss on early extinguishment of debt


(31)



(20)



(0.04)


Environmental reserves


21



13



0.03


Change in uncertain tax positions




(10)



(0.02)


Certain items affecting comparability


$

(337)



(243)



(0.44)


Adjusted net income (loss) (Non-GAAP)




$

(272)



$

(0.50)




*

Includes $(179) million related to commodity derivatives and $483 million related to interest-rate 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.


Years Ended
December 31,

millions

2017


2016

Net income (loss) attributable to common stockholders (GAAP)

$

(456)



$

(3,071)


Interest expense

932



890


Income tax expense (benefit)

(1,477)



(1,021)


DD&A

4,279



4,301


Exploration expense

2,541



946


(Gains) losses on divestitures, net

(674)



757


Impairments

408



227


Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives

156



559


Restructuring charges

21



389


Other operating expense



1


Loss on early extinguishment of debt

2



155


Certain other nonoperating items



(58)


Consolidated Adjusted EBITDAX (Margin) (Non-GAAP)

$

5,732



$

4,075


Total barrels of oil equivalent (BOE)

245



290


Consolidated Adjusted EBITDAX (Margin) per BOE

$

23.40



$

14.05


Management believes oil and natural gas exploration and development costs is a more accurate reflection of the expenditures incurred during the current year excluding certain obligations to be paid in future periods.

millions

Year Ended
December 31,
2017

Costs incurred (GAAP)*

$

4,093


Asset retirement obligation liabilities incurred

(5)


Cash expenditures for asset retirement obligations

131


Oil and natural gas exploration and development costs (Non-GAAP)

$

4,219




*

Includes $499 million of unproved property acquisitions.

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.


December 31, 2017






Anadarko


Anadarko


WGP*


excluding

millions

Consolidated


Consolidated


WGP

Total debt (GAAP)

$

15,689



$

3,493



$

12,196


Less cash and cash equivalents

4,553



80



4,473


Net debt (Non-GAAP)

$

11,136



$

3,413



$

7,723













Anadarko




Anadarko


excluding

millions



Consolidated


WGP

Net debt



$

11,136



$

7,723


Total equity



13,790



10,696


Adjusted capitalization



$

24,926



$

18,419









Net debt to adjusted capitalization ratio

45

%



42

%



*

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


Year Ended


December 31,


December 31,

millions

2017


2016


2017


2016

Cash Flows from Operating Activities








Net income (loss)

$

1,039



$

(452)



$

(211)



$

(2,808)


Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities








Depreciation, depletion, and amortization

1,044



1,099



4,279



4,301


Deferred income taxes

(1,143)



(117)



(2,169)



(1,238)


Dry hole expense and impairments of unproved properties

77



313



2,221



613


Impairments

25



166



408



227


(Gains) losses on divestitures, net

141



241



(674)



757


Loss on early extinguishment of debt



31



2



155


Total (gains) losses on derivatives, net

164



(342)



131



292


Operating portion of net cash received (paid) in settlement of derivative instruments

4



38



25



267


Other

78



86



303



342


Changes in assets and liabilities

(39)



60



(306)



92


Net Cash Provided by (Used in) Operating Activities*

$

1,390



$

1,123



$

4,009



$

3,000


Net Cash Provided by (Used in) Investing Activities

$

(1,002)



$

(1,506)



$

(1,028)



$

(2,762)


Net Cash Provided by (Used in) Financing Activities

$

(1,086)



$

(413)



$

(1,613)



$

2,008










Capital Expenditures








Exploration and Production and other

$

1,009



$

843



$

3,886



$

2,764


Midstream - Anadarko**

200



15



458



59


Midstream - WES

295



135



956



491


Total

$

1,504



$

993



$

5,300



$

3,314




*

Restructuring charges (excluding noncash share-based compensation) were $1 million for the quarter ended December 31, 2017, $23 million for the quarter ended December 31, 2016, $21 million for the year ended December 31, 2017, and $357 million for the year ended December 31, 2016. Cash payments for restructuring charges were $1 million for the quarter ended December 31, 2017, $30 million for the quarter ended December 31, 2016, $53 million for the year ended December 31, 2017, and $247 million for the year ended December 31, 2016.

**

Excludes WES.

 

Anadarko Petroleum Corporation

(Unaudited)



Quarter Ended


Year ended

Summary Financial Information

December 31,


December 31,

millions except per-share amounts

2017


2016


2017


2016

Consolidated Statements of Income








Revenues and Other








Oil sales

$

1,900



$

1,454



$

6,552



$

4,668


Natural-gas sales

258



443



1,348



1,564


Natural-gas liquids sales

301



281



1,069



921


Gathering, processing, and marketing sales

583



399



2,000



1,294


Gains (losses) on divestitures and other, net

(113)



(190)



939



(578)


Total

2,929



2,387



11,908



7,869


Costs and Expenses








Oil and gas operating

252



203



1,000



811


Oil and gas transportation

216



258



914



1,002


Exploration

170



440



2,541



946


Gathering, processing, and marketing

452



329



1,560



1,087


General and administrative

235



324



1,075



1,440


Depreciation, depletion, and amortization

1,044



1,099



4,279



4,301


Production, property, and other taxes

133



114



582



536


Impairments

25



166



408



227


Other operating expense

64



64



221



118


Total

2,591



2,997



12,580



10,468


Operating Income (Loss)

338



(610)



(672)



(2,599)


Other (Income) Expense








Interest expense

252



233



932



890


Loss on early extinguishment of debt



31



2



155


(Gains) losses on derivatives, net

168



(343)



135



286


Other (income) expense, net

(10)



(15)



(53)



(101)


Total

410



(94)



1,016



1,230


Income (Loss) Before Income Taxes

(72)



(516)



(1,688)



(3,829)


Income tax expense (benefit)

(1,111)



(64)



(1,477)



(1,021)


Net Income (Loss)

1,039



(452)



(211)



(2,808)


Net income (loss) attributable to noncontrolling interests

63



63



245



263


Net Income (Loss) Attributable to Common Stockholders

$

976



$

(515)



$

(456)



$

(3,071)


Per Common Share








Net income (loss) attributable to common stockholders—basic

$

1.80



$

(0.94)



$

(0.85)



$

(5.90)


Net income (loss) attributable to common stockholders—diluted

$

1.80



$

(0.94)



$

(0.85)



$

(5.90)


Average Number of Common Shares Outstanding—Basic

537



551



548



522


Average Number of Common Shares Outstanding—Diluted

537



551



548



522










Exploration Expense








Dry hole expense

$

25



$

188



$

1,433



$

397


Impairments of unproved properties

52



125



788



216


Geological and geophysical, exploration overhead, and other expense

93



127



320



333


Total

$

170



$

440



$

2,541



$

946


 

Anadarko Petroleum Corporation

(Unaudited)



December 31,


December 31,

millions

2017


2016

Condensed Balance Sheets




Cash and cash equivalents

$

4,553



$

3,184


Accounts receivable, net of allowance

1,829



1,728


Other current assets

380



354


Net properties and equipment

27,451



32,168


Other assets

2,211



2,226


Goodwill and other intangible assets

5,662



5,904


Total Assets

$

42,086



$

45,564


Short-term debt - Anadarko*

142



42


Other current liabilities

3,764



3,286


Long-term debt - Anadarko*

12,054



12,162


Long-term debt - WES and WGP

3,493



3,119


Deferred income taxes

2,234



4,324


Asset retirement obligations

2,500



2,802


Other long-term liabilities

4,109



4,332


Common stock

57



57


Paid-in capital

12,000



11,875


Retained earnings

1,109



1,704


Treasury stock

(2,132)



(1,033)


Accumulated other comprehensive income (loss)

(338)



(391)


Total stockholders' equity

10,696



12,212


Noncontrolling interests

3,094



3,285


Total Equity

13,790



15,497


Total Liabilities and Equity

$

42,086



$

45,564


Capitalization




Total debt

$

15,689



$

15,323


Total equity

13,790



15,497


Total

$

29,479



$

30,820







Capitalization Ratios





Total debt

53

%


50

%

Total equity

47

%


50

%



*

Excludes WES and WGP

 

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 December 31, 2017


















United States

287



1,064



90



26



98



7



$

54.97



$

2.63



$

34.99


Algeria

54





3



4





1



61.35





45.29


Other International

26







3







60.75






Total

367



1,064



93



33



98



8



$

56.32



$

2.63



$

35.28




















Quarter Ended December 31, 2016


















United States

240



1,881



116



22



173



10



$

46.31



$

2.56



$

24.24


Algeria

68





8



6





1



49.39





30.10


Other International

28







3







47.18






Total

336



1,881



124



31



173



11



$

47.01



$

2.56



$

24.62




















Year Ended December 31, 2017


















United States

266



1,309



95



97



478



34



$

49.62



$

2.82



$

29.24


Algeria

61





4



22





2



53.74





35.64


Other International

28







10







53.84






Total

355



1,309



99



129



478



36



$

50.66



$

2.82



$

29.54




















Year Ended December 31, 2016


















United States

233



2,093



122



85



766



44



$

39.06



$

2.04



$

19.32


Algeria

64





6



24





2



44.15





25.63


Other International

19







7







43.18






Total

316



2,093



128



116



766



46



$

40.34



$

2.04



$

19.64







































Average Daily Sales
Volumes
MBOE/d


Sales Volumes
MMBOE





























Quarter Ended December 31, 2017

637


58











Quarter Ended December 31, 2016

774


71





























Year Ended December 31, 2017

672


245











Year Ended December 31, 2016

793


290





























 

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 December 31, 2017













United States

$

1,450



$

258



$

290




$

(1)



$

5



$


Algeria

305





11









Other International

145













Total

$

1,900



$

258



$

301




$

(1)



$

5



$















Quarter Ended December 31, 2016













United States

$

1,025



$

443



$

259




$

39



$



$


Algeria

309





22









Other International

120













Total

$

1,454



$

443



$

281




$

39



$



$















Year Ended December 31, 2017











United States

$

4,818



$

1,348



$

1,010




$

26



$

4



$

(3)


Algeria

1,190





59









Other International

544













Total

$

6,552



$

1,348



$

1,069




$

26



$

4



$

(3)















Year Ended December 31, 2016











United States

$

3,330



$

1,564



$

861




$

253



$

13



$

(1)


Algeria

1,043





60









Other International

295













Total

$

4,668



$

1,564



$

921




$

253



$

13



$

(1)


 

Anadarko Petroleum Corporation

Estimated Year-End Proved Reserves 2015 - 2017















MMBOE


2017


2016


2015

Proved Reserves







Beginning of year


1,722



2,057



2,858


Reserves additions and revisions







Discoveries and extensions


114



40



29


Infill-drilling additions


71



69



89


Drilling-related reserves additions and revisions


185



109



118


Other non-price-related revisions


59



191



289


Net organic reserves additions


244



300



407


Acquisition of proved reserves in place


3



97



1


Price-related revisions


92



(147)



(624)


Total reserves additions and revisions


339



250



(216)


Sales in place


(379)



(294)



(279)


Production


(243)



(291)



(306)


End of year


1,439



1,722



2,057


Proved Developed Reserves







Beginning of year


1,325



1,632



1,969


End of year


1,127



1,325



1,632


 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of February 6, 2018






Note: Guidance excludes sales volumes for Alaska due to divestiture.








1st-Qtr


Full-Year



Guidance (see Note)


Guidance (see Note)


Units


Units










Total Sales Volumes (MMBOE)


55



58



238



248


Total Sales Volumes (MBOE/d)


611



644



652



679











Oil (MBbl/d)


352



365



370



390











United States


270



280



286



303


Algeria


55



56



57



58


Ghana


27



29



27



29











Natural Gas (MMcf/d)


















United States


1,025



1,075



1,085



1,125











Natural Gas Liquids (MBbl/d)


















United States


87



92



93



96


Algeria


4



6



5



6






















$ / Unit


$ / Unit

Price Differentials vs NYMEX (w/o hedges)


















Oil ($/Bbl)


(0.80)



3.20



(1.90)



2.30











United States


(2.00)



2.00



(3.00)



1.00


Algeria


3.00



7.00



2.00



7.00


Ghana


3.00



7.00



2.00



7.00











Natural Gas ($/Mcf)


















United States


(0.35)



(0.15)



(0.45)



(0.20)











 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of February 6, 2018






Note: Guidance excludes items affecting comparability.








1st-Qtr


Full-Year



Guidance (see Note)


Guidance (see Note)



$ MM


$ MM

Other Revenues









Marketing and Gathering Margin


145



165



700



780


Minerals and Other


30



50



190



230






















$ / BOE


$ / BOE

Costs and Expenses









Oil & Gas Direct Operating


4.70



4.90



4.25



4.75


Oil & Gas Transportation and Other


3.40



3.60



3.50



3.75


Depreciation, Depletion, and Amortization


18.50



19.00



18.25



18.75


Production Taxes (% of Product Revenue)


6.0

%


7.0

%


6.0

%


7.0

%












$ MM


$ MM










General and Administrative


240



260



945



995


Other Operating Expense


5



15



40



50


Exploration Expense









Non-Cash


40



70



150



200


Cash


50



60



200



220


Interest Expense (net)


230



240



925



975


Other (Income) Expense


(5)



5



(20)



20











Taxes









Algeria  (100% Current)


60

%


70

%


60

%


70

%

Rest of Company  (25% Current/75% Deferred for Q1 and 35% Current/65% Deferred for Total Year)


15

%


25

%


15

%


25

%










Noncontrolling Interest


50



70



300



350




















Avg. Shares Outstanding (MM)









Basic


520



530



520



530


Diluted


520



530



520



530




















Capital Investment (Excluding Western Gas Partners, LP)

$ MM


$ MM










APC Capital Expenditures


1,200



1,400



4,100



4,500


 

Anadarko Petroleum Corporation

Commodity Hedge Positions

As of February 6, 2018












Weighted Average Price per barrel


Volume

(MBbls/d)


Floor Sold


Floor Purchased


Ceiling Sold

Oil









Two-Way Collars









2018










WTI

108



$

50.00

$

60.48










Fixed Price - Financial









2018










Brent

84

$

61.45










Volume


Weighted Average Price per MMBtu


(thousand










MMBtu/d)


Floor Sold


Floor Purchased


Ceiling Sold

Natural Gas









Three-Way Collars









2018

250

$

2.00

$

2.75

$

3.54












Fixed Price - Financial









2018

280

$

3.02





 







Interest-Rate Derivatives

As of February 6, 2018







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

 

Anadarko Petroleum Corporation

Reconciliation of Same-Store Sales


Average Daily Sales Volumes


Quarter Ended December 31, 2017


Quarter Ended December 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

156



934



79



390



120



986



76



360


Gulf of Mexico

120



85



9



143



81



93



9



106


International

80





3



83



96





8



104


Same-Store Sales

356



1,019



91



616



297



1,079



93



570


Divestitures*

11



45



2



21



39



802



31



204


Total

367



1,064



93



637



336



1,881



124



774







Year Ended December 31, 2017


Year Ended December 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

128



966



79



368



123



991



73



361


Gulf of Mexico

121



107



10



149



65



82



7



86


International

89





4



93



83





6



89


Same-Store Sales

338



1,073



93



610



271



1,073



86



536


Divestitures*

17



236



6



62



45



1,020



42



257


Total

355



1,309



99



672



316



2,093



128



793




















*

Includes Eagleford, Marcellus, Eaglebine, Utah CBM, Moxa, Alaska, East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, and Carthage.

 









Note: Data for the quarter ended March 31, 2017, is presented for comparability to the company's First-Quarter 2018 Guidance.









Average Daily Sales Volumes


Quarter Ended March 31, 2017


Oil
MBbls/d


Natural Gas
MMcf/d


NGLs
MBbls/d


Total
MBOE/d

U.S. Onshore

115



1,058



85



376


Gulf of Mexico

125



129



12



159


International

98





6



104


Same-Store Sales

338



1,187



103



639


Divestitures*

29



672



15



156


Total

367



1,859



118



795












*

Includes Eagleford, Marcellus, Eaglebine, Utah CBM, Moxa, Alaska, East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, and Carthage.

 

SOURCE Anadarko Petroleum Corporation

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