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Quarterly Results

2016 Second Quarter
Anadarko Announces Second-Quarter 2016 Results

 

 

HOUSTON, July 26, 2016 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the second quarter of 2016, including a net loss attributable to common stockholders of $692 million, or $1.36 per share (diluted). The net loss includes certain items typically excluded by the investment community in published estimates, which in the aggregate decreased net income by $388 million or $0.76 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the second quarter of 2016 was $1.229 billion. Discretionary cash flow from operations totaled $669 million.(2)     

HIGHLIGHTS

  • Achieved record production levels at three operated Gulf of Mexico facilities and in the U.S. onshore Delaware and DJ basins
  • Encountered more than 1,040 net feet of oil pay at the Shenandoah-5 appraisal well and increased working interest in this operated deepwater discovery
  • Closed $2.5 billion of monetizations year to date
  • Retired $3 billion of near-term maturities with proceeds from debt issued during the first quarter

"Our portfolio continues to perform exceptionally well, and we've continued to significantly reduce our cost structure throughout the year," said Al Walker, Anadarko Chairman, President and CEO. "As a result of the record sales volumes from our Lucius and Caesar/Tonga fields in the Gulf of Mexico, as well as the improving well performance in the Delaware and DJ basins, we are increasing the midpoint of our full-year divestiture-adjusted(3) sales-volume guidance by 2 million BOE (barrels of oil equivalent). Additionally, we've been very successful monetizing assets through the first six months of this year and have increased the high end of our target range to $3.5 billion in total proceeds expected by year end. As stated previously, we intend to use sales proceeds to retire debt, including the remaining $750 million of 2017 maturities. In addition, should the commodity-price outlook continue to improve, we will evaluate redeploying some of the additional cash generated via operations and asset sales toward our highest-quality U.S. onshore opportunities."

OPERATIONS SUMMARY

Anadarko's second-quarter sales volumes of natural gas, oil and natural gas liquids (NGLs) totaled 72 million BOE, or an average of 792,000 BOE per day.

In the Delaware Basin of West Texas, Anadarko averaged record net sales volumes of 41,000 BOE per day, and exited the quarter at approximately 45,000 BOE per day. The company has continued its delineation program, running six rigs to further its understanding of both the vertical and areal potential across its 600,000-gross-acre position in the heart of the play. In the DJ Basin of northeast Colorado, Anadarko continued to optimize the performance of its base production during the second quarter, achieving record net sales volumes of approximately 243,000 BOE per day.

In the Gulf of Mexico, the company achieved several production records. The Lucius platform achieved a 24-hour gross production record and averaged sales volumes above the facility's 80,000 barrels of oil per day (BOPD) nameplate capacity. In addition, the company's Constitution spar recently achieved a production record of 65,000 BOPD, and its K2 complex also achieved an eight-year-high production rate of 28,000 BOPD. During the quarter, Anadarko continued to advance its understanding of the Shenandoah discovery, as it encountered more than 1,040 net feet of oil pay in the Shenandoah-5 appraisal well, expanding the eastern extent of the field. Additionally, the company increased its working interest in Shenandoah to 33 percent and added several new exploration opportunities to the portfolio by participating in a preferential-right process.

Internationally, the TEN field offshore Ghana is 97-percent complete with installation, hook-up and commissioning on schedule and first oil expected in the third quarter of 2016. At the adjacent Jubilee field, following maintenance on the floating production, storage and offloading vessel (FPSO) and implementation of new production and offtake procedures, production has ramped back up and is expected to average approximately 85,000 BOPD during the second half of the year. The partnership determined a long-term solution to convert the FPSO to a permanently moored facility, with the work program expected to be completed in the first half of 2017. Until the work program is complete, shuttle tankers will continue to be utilized to deliver offtake. Offshore Côte d'Ivoire, Anadarko continued its successful appraisal program with the drilling of the Paon-3AR horizontal sidetrack, which will be followed by a drillstem and interference testing program in the third quarter. In advancing the Mozambique LNG project, Anadarko achieved a significant milestone by submitting the Resettlement Plan for government review.

OPERATIONS REPORT

For details on Anadarko's operations and exploration program, including detailed tables illustrating divestiture-adjusted(3) information, please refer to the comprehensive report on second-quarter 2016 activity. The report is available at www.anadarko.com.

FINANCIAL SUMMARY

Anadarko ended the second quarter with approximately $1.4 billion of cash on hand. Year to date, Anadarko has generated approximately $2.5 billion in monetizations, including proceeds received during the second quarter from the secondary offering of Western Gas Equity Partners (NYSE: WGP) common units and divestitures of the company's Wamsutter and non-core Permian assets.

CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT

Anadarko will host a conference call on Wednesday, July 27, 2016, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company's outlook for the remainder of 2016. The dial-in number is 877.883.0383 in the United States or 412.902.6506 internationally. The confirmation number is 0728576. 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

Nine 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 GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.
(3) See the accompanying table for a reconciliation of "divestiture-adjusted" or "same-store" sales volumes, which are intended to present performance of Anadarko's continuing asset base, giving effect to recent divestitures.

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 2015, the company had approximately 2.06 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 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 in this challenging economic environment and meet financial and operating guidance, identify and complete additional monetization transactions, reduce its debt, timely complete and commercially operate the projects and drilling prospects identified in this news release, and successfully plan, secure necessary 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 2015 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:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Brian Kuck, brian.kuck@anadarko.com, 832.636.7135
Shandell Szabo, shandell.szabo@anadarko.com, 832.636.3977
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727

Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP), cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP) and free cash flow (non-GAAP), and total debt (GAAP) to net debt (non-GAAP), each as required under Regulation G of the Securities Exchange Act of 1934. The Company also provides non-GAAP definitions and reconciliations on its website located at www.anadarko.com/investor-kit. 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, 2016

   

Before

 

After

 

Per Share

millions except per-share amounts

 

Tax

 

Tax

 

(diluted)

Net income (loss) attributable to common stockholders

     

$

(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 (FIN 48)

 

   

(4)

   

(0.01)

 

Certain items affecting comparability

 

$

(609)

   

(388)

   

(0.76)

 

Adjusted net income (loss)

     

$

(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.         

 
   

Quarter Ended June 30, 2015

   

Before

 

After

 

Per Share

millions except per-share amounts

 

Tax

 

Tax

 

(diluted)

Net income (loss) attributable to common stockholders

     

$

61

   

$

0.12

 

Adjustments for certain items affecting comparability

           

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

 

$

229

   

145

   

0.28

 

Gains (losses) on divestitures, net

 

(91)

   

(77)

   

(0.15)

 

Impairments

 

(30)

   

(20)

   

(0.04)

 

Change in uncertain tax positions (FIN 48)

 

   

9

   

0.02

 

Certain items affecting comparability

 

$

108

   

57

   

0.11

 

Adjusted net income (loss)

     

$

4

   

$

0.01

 
 

* Includes $312 million related to interest-rate derivatives and $(83) million related to commodity derivatives.

 

Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures

Management believes that discretionary cash flow from operations and free cash flow are useful to management and investors as a measure of a company's ability to internally fund its capital expenditures and to service or incur additional debt. These measures eliminate the impact of certain items that management does not consider to be indicative of the Company's performance from period to period.

 

 

Quarter Ended

 

Six Months Ended

 

June 30,

 

June 30,

millions

2016

 

2015

 

2016

 

2015

Net cash provided by (used in) operating activities

$

1,229

   

$

1,243

   

$

1,092

   

$

(3,261)

 

Add back

             

Increase (decrease) in accounts receivable

(876)

   

462

   

(922)

   

105

 

(Increase) decrease in accounts payable and accrued expenses

314

   

(81)

   

717

   

198

 

Other items, net

14

   

(339)

   

100

   

269

 

Tronox settlement payment

   

   

   

5,215

 

Certain nonoperating and other excluded items

(12)

   

   

168

   

26

 

Current taxes related to asset monetizations

   

88

   

   

316

 

Discretionary cash flow from operations

$

669

   

$

1,373

   

$

1,155

   

$

2,868

 

Less capital expenditures*

728

   

1,401

   

1,624

   

3,223

 

Free cash flow**

$

(59)

   

$

(28)

   

$

(469)

   

$

(355)

 
 

* Includes Western Gas Partners, LP (WES) capital expenditures of $120 million for the quarter ended June 30, 2016, and $122 million for the quarter ended June 30, 2015, $260 million for the six months ended June 30, 2016, and $278 million for the six months ended June 30, 2015.

 

** Free cash flow for the six months ended June 30, 2015, includes a $595 million current tax benefit associated with the Tronox settlement.

 

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, 2016

             

Anadarko

     

Anadarko

 

WGP*

 

excluding

millions

   

Consolidated

 

Consolidated

 

WGP

Total debt

   

$

15,673

   

$

2,960

   

$

12,713

 

Less cash and cash equivalents

   

1,394

   

160

   

1,234

 

Net debt

   

$

14,279

   

$

2,800

   

$

11,479

 
               
             

Anadarko

         

Anadarko

 

excluding

millions

       

Consolidated

 

WGP

Net debt

       

$

14,279

   

$

11,479

 

Total equity

       

14,600

   

11,281

 

Adjusted capitalization

       

$

28,879

   

$

22,760

 
                       

Net debt to adjusted capitalization ratio

         

49

%

   

50

%

 

* Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko and WES is a consolidated subsidiary of WGP.

 

Anadarko Petroleum Corporation

(Unaudited)

 
 

Quarter Ended

 

Six Months Ended

Summary Financial Information

June 30,

 

June 30,

millions except per-share amounts

2016

 

2015

 

2016

 

2015

Consolidated Statements of Income

             

Revenues and Other

             

Oil and condensate sales

$

1,125

   

$

1,616

   

$

1,975

   

$

3,035

 

Natural-gas sales

320

   

487

   

$

686

   

1,128

 

Natural-gas liquids sales

235

   

229

   

413

   

461

 

Gathering, processing, and marketing sales

305

   

305

   

545

   

598

 

Gains (losses) on divestitures and other, net

(70)

   

(1)

   

(30)

   

(265)

 

Total

1,915

   

2,636

   

3,589

   

4,957

 

Costs and Expenses

             

Oil and gas operating

202

   

226

   

410

   

522

 

Oil and gas transportation

246

   

283

   

488

   

588

 

Exploration

76

   

103

   

202

   

1,186

 

Gathering, processing, and marketing

252

   

255

   

467

   

509

 

General and administrative

305

   

278

   

754

   

585

 

Depreciation, depletion, and amortization

984

   

1,214

   

2,133

   

2,470

 

Other taxes

157

   

151

   

274

   

333

 

Impairments

18

   

30

   

34

   

2,813

 

Other operating expense

7

   

6

   

23

   

69

 

Total

2,247

   

2,546

   

4,785

   

9,075

 

Operating Income (Loss)

(332)

   

90

   

(1,196)

   

(4,118)

 

Other (Income) Expense

             

Interest expense

217

   

201

   

437

   

417

 

Loss on early extinguishment of debt

124

   

   

124

   

 

(Gains) losses on derivatives, net

307

   

(311)

   

604

   

(159)

 

Other (income) expense, net

(55)

   

15

   

(55)

   

62

 

Tronox-related contingent loss

   

   

   

5

 

Total

593

   

(95)

   

1,110

   

325

 

Income (Loss) Before Income Taxes

(925)

   

185

   

(2,306)

   

(4,443)

 

Income tax expense (benefit)

(314)

   

77

   

(697)

   

(1,315)

 

Net Income (Loss)

(611)

   

108

   

(1,609)

   

(3,128)

 

Net income (loss) attributable to noncontrolling interests

81

   

47

   

117

   

79

 

Net Income (Loss) Attributable to Common Stockholders

$

(692)

   

$

61

   

$

(1,726)

   

$

(3,207)

 

Per Common Share

             

Net income (loss) attributable to common stockholders—basic

$

(1.36)

   

$

0.12

   

$

(3.39)

   

$

(6.32)

 

Net income (loss) attributable to common stockholders—diluted

$

(1.36)

   

$

0.12

   

$

(3.39)

   

$

(6.32)

 

Average Number of Common Shares Outstanding—Basic

510

   

508

   

510

   

507

 

Average Number of Common Shares Outstanding—Diluted

510

   

509

   

510

   

507

 
               

Exploration Expense

             

Dry hole expense

$

(5)

   

$

13

   

$

6

   

$

42

 

Impairments of unproved properties

15

   

18

   

39

   

998

 

Geological and geophysical expense

32

   

16

   

69

   

38

 

Exploration overhead and other

34

   

56

   

88

   

108

 

Total

$

76

   

$

103

   

$

202

   

$

1,186

 

 

Anadarko Petroleum Corporation

(Unaudited)

 
 

Quarter Ended

 

Six Months Ended

Summary Financial Information

June 30,

 

June 30,

millions

2016

 

2015

 

2016

 

2015

Cash Flows from Operating Activities

             

Net income (loss)

$

(611)

   

$

108

   

$

(1,609)

   

$

(3,128)

 

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

             

Depreciation, depletion, and amortization

984

   

1,214

   

2,133

   

2,470

 

Deferred income taxes

(407)

   

11

   

(820)

   

(1,187)

 

Dry hole expense and impairments of unproved properties

10

   

31

   

45

   

1,040

 

Impairments

18

   

30

   

34

   

2,813

 

(Gains) losses on divestitures, net

104

   

91

   

102

   

425

 

Loss on early extinguishment of debt

124

   

   

124

   

 

Total (gains) losses on derivatives, net

311

   

(310)

   

610

   

(158)

 

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

60

   

81

   

165

   

172

 

Other

88

   

29

   

203

   

74

 

Changes in assets and liabilities

             

  Tronox-related contingent liability

   

   

   

(5,210)

 

  (Increase) decrease in accounts receivable

876

   

(462)

   

922

   

(105)

 

  Increase (decrease) in accounts payable and accrued expenses

(314)

   

81

   

(717)

   

(198)

 

  Other items, net

(14)

   

339

   

(100)

   

(269)

 

Net Cash Provided by (Used in) Operating Activities

$

1,229

   

$

1,243

   

$

1,092

   

$

(3,261)

 
               

Capital Expenditures

$

728

   

$

1,401

   

$

1,624

   

$

3,223

 

 

         

June 30,

 

December 31,

millions

       

2016

 

2015

Condensed Balance Sheets

             

Cash and cash equivalents

       

$

1,394

   

$

939

 

Accounts receivable, net of allowance

       

1,500

   

2,469

 

Other current assets

       

318

   

573

 

Net properties and equipment

       

32,345

   

33,751

 

Other assets

       

2,239

   

2,268

 

Goodwill and other intangible assets

       

6,237

   

6,331

 

Total Assets

       

$

44,033

   

$

46,331

 

Short-term debt

       

32

   

32

 

Other current liabilities

       

3,212

   

4,148

 

Long-term debt

       

15,641

   

15,636

 

Deferred income taxes

       

4,686

   

5,400

 

Other long-term liabilities

       

5,862

   

5,658

 

Stockholders' equity

       

11,281

   

12,819

 

Noncontrolling interests

       

3,319

   

2,638

 

Total Equity

       

$

14,600

   

$

15,457

 

Total Liabilities and Equity

       

$

44,033

   

$

46,331

 

Capitalization

             

Total debt

       

$

15,673

   

$

15,668

 

Total equity

       

14,600

   

15,457

 

Total

       

$

30,273

   

$

31,125

 
                       

Capitalization Ratios

                     

Total debt

         

52

%

   

50

%

Total equity

         

48

%

   

50

%

 

Anadarko Petroleum Corporation

(Unaudited)

 

Sales Volumes and Prices

                                 
 

Average Daily Sales Volumes

 

Sales Volumes

 

Average Sales Price

 

Oil &

         

Oil &

         

Oil &

       
 

Condensate

 

Natural Gas

 

NGLs

 

Condensate

 

Natural Gas

 

NGLs

 

Condensate

 

Natural Gas

 

NGLs

 

MBbls/d

 

MMcf/d

 

MBbls/d

 

MMBbls

 

Bcf

 

MMBbls

 

Per Bbl

 

Per Mcf

 

Per Bbl

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

 
                                   

Quarter Ended June 30, 2015

                                 

United States

240

   

2,354

   

130

   

21

   

215

   

12

   

$

54.14

   

$

2.28

   

$

17.98

 

Algeria

50

   

   

6

   

5

   

   

   

60.24

   

   

31.11

 

Other International

28

   

   

   

3

   

   

   

61.82

   

   

 

Total

318

   

2,354

   

136

   

29

   

215

   

12

   

$

55.78

   

$

2.28

   

$

18.50

 
                                   

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

 
                                   

Six Months Ended June 30, 2015

                                 

United States

238

   

2,545

   

134

   

43

   

461

   

24

   

$

49.23

   

$

2.45

   

$

17.63

 

Algeria

60

   

   

6

   

11

   

   

1

   

57.80

   

   

32.01

 

Other International

28

   

   

   

5

   

   

   

55.69

   

   

 

Total

326

   

2,545

   

140

   

59

   

461

   

25

   

$

51.37

   

$

2.45

   

$

18.24

 
                                   
                                   
 

Average Daily Sales Volumes

MBOE/d

 

Sales Volumes

MMBOE

                   
                                   

Quarter Ended June 30, 2016

792

 

72

                   

Quarter Ended June 30, 2015

846

 

77

                   
                                   

Six Months Ended June 30, 2016

809

 

147

                   

Six Months Ended June 30, 2015

890

 

161

                   
                                   

 

Sales Revenue and Commodity Derivatives

             
 

Sales

   

Net Cash Received (Paid) from Settlement of Commodity Derivatives

millions

Oil & Condensate

 

Natural Gas

 

NGLs

   

Oil & Condensate

 

Natural Gas

 

NGLs

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)

 
                         

Quarter Ended June 30, 2015

                       

United States

$

1,181

   

$

487

   

$

213

     

$

3

   

$

77

   

$

2

 

Algeria

277

   

   

16

     

   

   

 

Other International

158

   

   

     

   

   

 

Total

$

1,616

   

$

487

   

$

229

     

$

3

   

$

77

   

$

2

 
                         

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

   

$

 
                         

Six Months Ended June 30, 2015

                   

United States

$

2,121

   

$

1,128

   

$

426

     

$

5

   

$

150

   

$

17

 

Algeria

629

   

   

35

     

   

   

 

Other International

285

   

   

     

   

   

 

Total

$

3,035

   

$

1,128

   

$

461

     

$

5

   

$

150

   

$

17

 

 

 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of July 26, 2016

         

Note: Guidance excludes 2016 sales volumes associated with the East Chalk and Wamsutter divestitures.

         
   

3rd-Qtr

 

Full-Year

   

Guidance (see Note)

 

Guidance (see Note)

 

 Units

 

 Units

                 

Total Sales Volumes (MMBOE)

 

68

 

 

70

   

277

 

 

281

 

Total Sales Volumes (MBOE/d)

 

739

 

 

761

   

757

 

 

768

 
                 

Oil (MBbl/d)

 

301

 

 

307

   

303

 

 

308

 
                 

United States

 

222

 

 

225

   

223

 

 

226

 

Algeria

 

62

 

 

64

   

63

 

 

64

 

Ghana

 

17

 

 

18

   

17

 

 

18

 
                 

Natural Gas (MMcf/d)

               
                 

United States

 

1,895

 

 

1,935

   

2,000

 

 

2,020

 
                 

Natural Gas Liquids (MBbl/d)

               
                 

United States

 

114

 

 

118

   

114

 

 

117

 

Algeria

 

5

 

 

7

   

5

 

 

7

 
                 
                 
   

$ / Unit

 

$ / Unit

Price Differentials vs NYMEX (w/o hedges)

               
                 

Oil ($/Bbl)

 

(6.70)

 

 

(2.20)

   

(6.90)

 

 

(2.50)

 
                 

United States

 

(8.00)

 

 

(3.00)

   

(8.00)

 

 

(3.00)

 

Algeria

 

(3.00)

 

 

   

(4.00)

 

 

(1.00)

 

Ghana

 

(3.00)

 

 

   

(4.00)

 

 

(1.00)

 
                 

Natural Gas ($/Mcf)

               
                 

United States

 

(0.55)

 

 

(0.40)

   

(0.45)

 

 

(0.35)

 
                 

 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of July 26, 2016

         

Note: Guidance excludes items affecting comparability.

         
   

3rd-Qtr

 

Full-Year

   

Guidance (see Note)

 

Guidance (see Note)

   

 $ MM

 

 $ MM

Other Revenues

               

Marketing and Gathering Margin

 

20

 

 

40

   

120

 

 

140

 

Minerals and Other

 

35

 

 

55

   

155

 

 

175

 
                 
                 
   

$ / BOE

 

$ / BOE

Costs and Expenses

               

Oil & Gas Direct Operating

 

3.15

 

 

3.30

   

3.05

 

 

3.25

 

Oil & Gas Transportation

 

3.20

 

 

3.40

   

3.25

 

 

3.45

 

Depreciation, Depletion, and Amortization

 

14.90

 

 

15.35

   

14.80

 

 

15.00

 

Production Taxes (% of Product Revenue)

 

8.0

%

 

9.0

%

 

8.0

%

 

9.0

%

                 
   

$ MM

 

$ MM

                 

General and Administrative (excludes restructuring charges)

 

245

 

 

265

   

950

 

 

1,000

 

Other Operating Expense

 

25

 

 

35

   

75

 

 

85

 

Exploration Expense

               

  Non-Cash

 

40

 

 

60

   

350

 

 

450

 

  Cash

 

50

 

 

70

   

260

 

 

280

 

Interest Expense (net)

 

210

 

 

225

   

865

 

 

885

 

Other (Income) Expense (includes noncontrolling interest)

 

70

 

 

80

   

250

 

 

275

 
                 

Taxes

               

Algeria  (100% current)

 

60

%

 

70

%

 

65

%

 

75

%

Rest of Company (10% Current/90% Deferred for Q3 and Total Year)

 

35

%

 

45

%

 

30

%

 

40

%

                 
                 

Avg. Shares Outstanding (MM)

               

Basic

 

510

 

 

511

   

510

 

 

511

 

Diluted

 

510

 

 

511

   

511

 

 

512

 
                 
                 

Capital Investment (Excluding Western Gas Partners, LP)

$ MM

 

$ MM

                 

APC Capital Expenditures

 

650

 

 

750

   

2,600

 

 

2,800

 
                 

 

Anadarko Petroleum Corporation

Commodity Hedge Positions

As of July 26, 2016

                   
         

Weighted Average Price per barrel

     

Volume

(MBbls/d)

 

Floor Sold

 

Floor Purchased

 

Ceiling Sold

Oil

               

Three-Way Collars

             

2016

             
 

WTI

 

65

$

41.54

$

53.08

$

62.25

 

Brent

 

18

$

47.22

$

59.44

$

69.47

     

83

$

42.77

$

54.46

$

63.82

           
     

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 July 26, 2016

           

Instrument

Notional Amt.

Reference Period

Mandatory

Termination Date

Rate Paid

Rate Received

Swap

$50 Million

Sept. 2016 – 2026

Sept. 2016

5.910%

3M LIBOR

Swap

$50 Million

Sept. 2016 – 2046

Sept. 2016

6.290%

3M LIBOR

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

 

 

Anadarko Petroleum Corporation

Reconciliation of Same-Store Sales

 

Average Daily Sales Volumes

 

Quarter Ended March 31, 2016

 

Quarter Ended March 31, 2015

 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

U.S. Onshore

162

   

2,125

   

110

   

626

   

166

   

2,138

   

125

   

647

 

Deepwater Gulf of Mexico

58

   

85

   

7

   

79

   

46

   

221

   

6

   

89

 

International and Alaska

93

   

   

6

   

99

   

107

   

   

7

   

114

 

Same-Store Sales

313

   

2,210

   

123

   

804

   

319

   

2,359

   

138

   

850

 

Divestitures*

2

   

93

   

5

   

23

   

16

   

379

   

5

   

84

 

Total

315

   

2,303

   

128

   

827

   

335

   

2,738

   

143

   

934

 
       
 

Quarter Ended June 30, 2016

 

Quarter Ended June 30, 2015

 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

U.S. Onshore

157

   

2,033

   

116

   

612

   

172

   

1,889

   

117

   

604

 

Deepwater Gulf of Mexico

56

   

73

   

6

   

74

   

57

   

113

   

7

   

83

 

International and Alaska

81

   

   

5

   

86

   

87

   

   

6

   

93

 

Same-Store Sales

294

   

2,106

   

127

   

772

   

316

   

2,002

   

130

   

780

 

Divestitures*

2

   

82

   

4

   

20

   

2

   

352

   

6

   

66

 

Total

296

   

2,188

   

131

   

792

   

318

   

2,354

   

136

   

846

 
                               
 

Six Months Ended June 30, 2016

 

Six Months Ended June 30, 2015

 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

U.S. Onshore

159

   

2,079

   

113

   

618

   

169

   

2,013

   

122

   

626

 

Deepwater Gulf of Mexico

57

   

78

   

7

   

77

   

51

   

167

   

7

   

86

 

International and Alaska

87

   

   

5

   

92

   

97

   

   

6

   

103

 

Same-Store Sales

303

   

2,157

   

125

   

787

   

317

   

2,180

   

135

   

815

 

Divestitures*

2

   

88

   

5

   

22

   

9

   

365

   

5

   

75

 

Total

305

   

2,245

   

130

   

809

   

326

   

2,545

   

140

   

890

 
                               

* Includes Wamsutter, East Chalk, EOR, Bossier, and Powder River Basin CBM.

 

Average Daily Sales Volumes

     

Year Ended December 31, 2015

                 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

U.S. Onshore

               

163

   

1,909

   

111

   

593

 

Deepwater Gulf of Mexico

               

53

   

152

   

7

   

85

 

International and Alaska

               

94

   

   

6

   

100

 

Same-Store Sales

               

310

   

2,061

   

124

   

778

 

Divestitures*

               

7

   

273

   

6

   

58

 

Total

               

317

   

2,334

   

130

   

836

 
                               

* Includes Wamsutter, East Chalk, EOR, Bossier, and Powder River Basin CBM.

 

PDF - http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/APC-2Q16-OpsReport.pdf   

 

SOURCE Anadarko Petroleum Corporation

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