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Quarterly Results

2016 Third Quarter
Anadarko Announces Third-Quarter Results

HOUSTON, Oct. 31, 2016 – Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the third quarter of 2016, including a net loss attributable to common stockholders of $830 million, or $1.61 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 $371 million or $0.72 per share (diluted) on an after-tax basis.(1) Net cash provided by operating activities in the third quarter of 2016 was $785 million.              

           

HIGHLIGHTS

• Delivered strong sales volumes with oil volumes exceeding the midpoint of guidance by approximately 13,000 barrels per day

• Further reduced costs, with both capital expenditures and lease operating expense (LOE) per barrel of oil equivalent (BOE) favorable to guidance

• Closed nearly $3 billion of monetizations year to date

• Announced $2 billion acquisition of Freeport McMoRan’s deepwater Gulf of Mexico assets

 

“Anadarko delivered strong operating performance and generated net cash of $785 million during the quarter,” said Al Walker, Anadarko Chairman, President and CEO. “We are increasing our 2016 full-year divestiture-adjusted(2) sales-volume guidance by 8 million BOE from the midpoint of our initial expectations and further enhancing our financial position with line of sight to more than $4 billion of monetizations for the year. We have accelerated activity with two additional rigs in both the Delaware Basin and the DJ Basin in conjunction with our $2 billion deepwater Gulf of Mexico property acquisition, which remains on track to close prior to year end. Collectively, these actions and results have streamlined our operations, strengthened our financial position and provide confidence in our ability to deliver a 10- to 12-percent compounded annual oil growth rate over the next five years.”

 

OPERATIONS SUMMARY

Anadarko’s third-quarter sales volumes of natural gas, oil and natural gas liquids (NGLs) totaled 72 million BOE, or an average of 780,000 BOE per day.

In the Delaware Basin of West Texas, Anadarko increased oil sales volumes by approximately 10,000 barrels per day to 27,000 barrels per day, a 60-percent increase relative to the third quarter of 2015 and a 22-percent increase over the second quarter of this year. Anadarko is currently running eight rigs in the basin as it continues to delineate the stacked-pay potential across its 580,000-gross-acre position. In the DJ Basin of northeast Colorado, the company increased sales volumes by 28,000 BOE per day over the third quarter of 2015, averaging 248,000 BOE per day.

In the Gulf of Mexico, the company increased oil sales volumes by 10,000 barrels per day to 65,000 barrels per day, an 18-percent increase over the third quarter of 2015. This increase was primarily driven by the company’s low-cost development activity as it tied back newly completed wells to Lucius, K2 and Caesar/Tonga. The company also announced the acquisition of Freeport McMoRan’s deepwater Gulf of Mexico assets, which will be immediately accretive upon closing. The transaction, which will double both Anadarko’s total Gulf of Mexico production and its working interest in Lucius, is expected to close during the fourth quarter of this year and is subject to customary closing conditions.

Internationally, the TEN complex offshore Ghana achieved first oil on time and on budget and is currently producing approximately 40,000 gross barrels of oil per day as it continues to ramp up toward facility capacity. Additionally, the company conducted a successful drillstem test of its Paon field offshore Côte d’Ivoire as it continues to evaluate the potential commerciality of this discovery.

 

OPERATIONS REPORT

For details on Anadarko’s operations and exploration program, including detailed tables illustrating divestiture-adjusted(2) information, please refer to the comprehensive report on third-quarter 2016 activity. The report is available at www.anadarko.com.

 

FINANCIAL SUMMARY

Anadarko ended the third quarter with approximately $4 billion of cash on hand, which was significantly enhanced by the company’s successful $2.16 billion equity offering during the quarter and its successful monetization program year to date. Anadarko plans to use approximately $1.8 billion of its cash on hand to fund the Gulf of Mexico acquisition and plans to redeem its remaining $750 million of senior notes due September 2017. During the third quarter, the company signed an agreement to divest its Carthage assets in East Texas for more than $1 billion, with the transaction expected to close by year end. As a result of these actions taken throughout the year to strengthen the company’s financial position, both Moody’s and S&P recently improved their ratings outlook to “stable.”

 

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

Anadarko will host a conference call on Tuesday, Nov. 1, 2016, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss third-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 8528639. 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

Eleven pages of summary financial data follow, including current hedge positions, a reconciliation of “divestiture-adjusted” or “same-store” sales, and updated financial and production guidance.

 

(1) See the accompanying table for details of certain items affecting comparability.

(2) See the accompanying table for a reconciliation of “divestiture-adjusted” or “same-store” sales volumes, which are intended to present performance of Anadarko’s continuing asset base, giving effect to recent divestitures.

 

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, consummate the transactions described in this news release and 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 achieve production expectations on its projects. 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

Robin Fielder, robin.fielder@anadarko.com, 832.636.1462

Jim Grant, james.grant@anadarko.com, 832.636.8320

Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) and total debt (GAAP) to net debt (non-GAAP), each as required under Regulation G of the Securities Exchange Act of 1934. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.

 

Management uses adjusted net income (loss) to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain noncash and/or other items that management does not consider to be indicative of the Company’s performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company’s operating and financial performance across periods, as well as facilitating comparisons to others in the Company’s industry.

 

 

Quarter Ended September 30, 2016

 

 

Before

 

After

 

Per Share

millions except per-share amounts

 

Tax

 

Tax

 

(diluted)

Net income (loss) attributable to common stockholders

 

 

 

$

(830

)

 

$

(1.61

)

Adjustments for certain items affecting comparability

 

 

 

 

 

 

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

commodity derivatives*

 

$

(88

)

 

(56

)

 

(0.11

)

Gains (losses) on divestitures, net

 

(414

)

 

(261

)

 

(0.51

)

Impairments - producing properties

 

(27

)

 

(17

)

 

(0.03

)

Restructuring charges

 

(112

)

 

(71

)

 

(0.14

)

Tax indemnification

 

39

 

 

25

 

 

0.05

 

Change in uncertain tax positions (FIN 48)

 

 

 

9

 

 

0.02

 

Certain items affecting comparability

 

$

(602

)

 

(371

)

 

(0.72

)

Adjusted net income (loss)

 

 

 

$

(459

)

 

$

(0.89

)

 

*    Includes $(84) million related to interest-rate derivatives and $(4) million related to commodity derivatives.  

 

 

 

Quarter Ended September 30, 2015

 

 

Before

 

After

 

Per Share

millions except per-share amounts

 

Tax

 

Tax

 

(diluted)

Net income (loss) attributable to common stockholders

 

 

 

$

(2,235

)

 

$

(4.41

)

Adjustments for certain items affecting comparability

 

 

 

 

 

 

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

 

$

(360

)

 

(227

)

 

(0.45

)

Gains (losses) on divestitures, net (after noncontrolling interest)

 

(613

)

 

(388

)

 

(0.76

)

Impairments

 

 

 

 

 

 

Producing properties

 

(758

)

 

(479

)

 

(0.94

)

Exploration assets

 

(787

)

 

(698

)

 

(1.38

)

Inventory adjustments

 

(33

)

 

(22

)

 

(0.04

)

Change in uncertain tax positions (FIN 48)

 

 

 

(28

)

 

(0.05

)

Other adjustments

 

(40

)

 

(35

)

 

(0.07

)

Certain items affecting comparability

 

$

(2,591

)

 

(1,877

)

 

(3.69

)

Adjusted net income (loss)

 

 

 

$

(358

)

 

$

(0.72

)

 

*    Includes $(407) million related to interest-rate derivatives, $46 million related to commodity derivatives, and $1 million related to gathering, processing, and marketing sales.

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.

 

 

 

September 30, 2016

 

 

 

 

 

 

 

Anadarko

 

 

 

Anadarko

 

WGP*

 

excluding

millions

 

 

Consolidated

 

Consolidated

 

WGP

Total debt

 

 

$

15,878

 

 

$

2,935

 

 

$

12,943

 

Less cash and cash equivalents

 

 

3,980

 

 

146

 

 

3,834

 

Net debt

 

 

$

11,898

 

 

$

2,789

 

 

$

9,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anadarko

 

 

 

 

 

Anadarko

 

excluding

millions

 

 

 

 

Consolidated

 

WGP

Net debt

 

 

 

 

$

11,898

 

 

$

9,109

 

Total equity

 

 

 

 

15,912

 

 

12,600

 

Adjusted capitalization

 

 

 

 

$

27,810

 

 

$

21,709

 

 

Net debt to adjusted capitalization ratio

 

 

 

 

43

%

 

42

%

 

 

*    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

Cash Flow Information

(Unaudited)

 

Quarter Ended

 

Nine Months Ended

 

September 30,

 

September 30,

millions

2016

 

2015

 

2016

 

2015

Cash Flows from Operating Activities

 

 

 

 

 

 

 

Net income (loss)

$

(747

)

 

$

(2,160

)

 

$

(2,356

)

 

$

(5,288

)

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

 

 

 

 

 

 

 

Depreciation, depletion, and amortization

1,069

 

 

1,111

 

 

3,202

 

 

3,581

 

Deferred income taxes

(301

)

 

(1,440

)

 

(1,121

)

 

(2,627

)

Dry hole expense and impairments of unproved properties

255

 

 

953

 

 

300

 

 

1,993

 

Impairments

27

 

 

758

 

 

61

 

 

3,571

 

(Gains) losses on divestitures, net

414

 

 

578

 

 

516

 

 

1,003

 

Loss on early extinguishment of debt

 

 

 

 

124

 

 

 

Total (gains) losses on derivatives, net

24

 

 

281

 

 

634

 

 

123

 

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

64

 

 

79

 

 

229

 

 

251

 

Other

53

 

 

145

 

 

256

 

 

219

 

Changes in assets and liabilities*

(73

)

 

822

 

 

32

 

 

(4,960

)

Net Cash Provided by (Used in) Operating Activities**

$

785

 

 

$

1,127

 

 

$

1,877

 

 

$

(2,134

)

Net Cash Provided by (Used in) Investing Activities

$

(291

)

 

$

(911

)

 

$

(1,256

)

 

$

(3,696

)

Net Cash Provided by (Used in) Financing Activities

$

2,092

 

 

$

(315

)

 

$

2,421

 

 

$

534

 

 

 

 

 

 

 

 

 

Capital Expenditures***

$

697

 

 

$

1,352

 

 

$

2,321

 

 

$

4,575

 

 

*    The nine months ended September 30, 2015, includes a $5,210 million decrease for the Tronox-related contingent liability.

** Restructuring charges (excluding stock-based compensation) were $110 million for the quarter ended September 30, 2016, and $334 million for the nine months ended September 30, 2016. Cash payments for restructuring charges were $35 million for the quarter ended September 30, 2016, and $217 million for the nine months ended September 30, 2016.

***Includes Western Gas Partners, LP (WES) capital expenditures of $95 million for the quarter ended September 30, 2016, and $127 million for the quarter ended September 30, 2015, $355 million for the nine months ended September 30, 2016, and $405 million for the nine months ended September 30, 2015.

Anadarko Petroleum Corporation

(Unaudited)

 

Quarter Ended

 

Nine Months Ended

Summary Financial Information

September 30,

 

September 30,

millions except per-share amounts

2016

 

2015

 

2016

 

2015

Consolidated Statements of Income

 

 

 

 

 

 

 

Revenues and Other

 

 

 

 

 

 

 

Oil and condensate sales

$

1,239

 

 

$

1,229

 

 

$

3,214

 

 

$

4,264

 

Natural-gas sales

435

 

 

484

 

 

1,121

 

 

1,612

 

Natural-gas liquids sales

227

 

 

183

 

 

640

 

 

644

 

Gathering, processing, and marketing sales

350

 

 

334

 

 

895

 

 

932

 

Gains (losses) on divestitures and other, net

(358

)

 

(542

)

 

(388

)

 

(807

)

Total

1,893

 

 

1,688

 

 

5,482

 

 

6,645

 

Costs and Expenses

 

 

 

 

 

 

 

Oil and gas operating

198

 

 

262

 

 

608

 

 

784

 

Oil and gas transportation

256

 

 

265

 

 

744

 

 

853

 

Exploration

304

 

 

1,074

 

 

506

 

 

2,260

 

Gathering, processing, and marketing

291

 

 

289

 

 

758

 

 

798

 

General and administrative

362

 

 

303

 

 

1,116

 

 

888

 

Depreciation, depletion, and amortization

1,069

 

 

1,111

 

 

3,202

 

 

3,581

 

Other taxes

148

 

 

127

 

 

422

 

 

460

 

Impairments

27

 

 

758

 

 

61

 

 

3,571

 

Other operating expense

31

 

 

48

 

 

54

 

 

117

 

Total

2,686

 

 

4,237

 

 

7,471

 

 

13,312

 

Operating Income (Loss)

(793

)

 

(2,549

)

 

(1,989

)

 

(6,667

)

Other (Income) Expense

 

 

 

 

 

 

 

Interest expense

220

 

 

199

 

 

657

 

 

616

 

Loss on early extinguishment of debt

 

 

 

 

124

 

 

 

(Gains) losses on derivatives, net

25

 

 

282

 

 

629

 

 

123

 

Other (income) expense, net

(31

)

 

47

 

 

(86

)

 

109

 

Tronox-related contingent loss

 

 

 

 

 

 

5

 

Total

214

 

 

528

 

 

1,324

 

 

853

 

Income (Loss) Before Income Taxes

(1,007

)

 

(3,077

)

 

(3,313

)

 

(7,520

)

Income tax expense (benefit)

(260

)

 

(917

)

 

(957

)

 

(2,232

)

Net Income (Loss)

(747

)

 

(2,160

)

 

(2,356

)

 

(5,288

)

Net income (loss) attributable to noncontrolling interests

83

 

 

75

 

 

200

 

 

154

 

Net Income (Loss) Attributable to Common Stockholders

$

(830

)

 

$

(2,235

)

 

$

(2,556

)

 

$

(5,442

)

Per Common Share

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders—basic

$

(1.61

)

 

$

(4.41

)

 

$

(5.00

)

 

$

(10.73

)

Net income (loss) attributable to common stockholders—diluted

$

(1.61

)

 

$

(4.41

)

 

$

(5.00

)

 

$

(10.73

)

Average Number of Common Shares Outstanding—Basic

517

 

 

508

 

 

512

 

 

508

 

Average Number of Common Shares Outstanding—Diluted

517

 

 

508

 

 

512

 

 

508

 

 

 

 

 

 

 

 

 

Exploration Expense

 

 

 

 

 

 

 

Dry hole expense

$

203

 

 

$

817

 

 

$

209

 

 

$

859

 

Impairments of unproved properties

52

 

 

136

 

 

91

 

 

1,134

 

Geological and geophysical expense

12

 

 

67

 

 

81

 

 

105

 

Exploration overhead and other

37

 

 

54

 

 

125

 

 

162

 

Total

$

304

 

 

$

1,074

 

 

$

506

 

 

$

2,260

 

 

Anadarko Petroleum Corporation

(Unaudited)

 

 

 

 

 

September 30,

 

December 31,

millions

 

 

 

 

2016

 

2015

Condensed Balance Sheets

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

$

3,980

 

 

$

939

 

Accounts receivable, net of allowance

 

 

 

 

1,591

 

 

2,469

 

Other current assets

 

 

 

 

347

 

 

573

 

Net properties and equipment

 

 

 

 

31,099

 

 

33,751

 

Other assets

 

 

 

 

2,203

 

 

2,268

 

Goodwill and other intangible assets

 

 

 

 

6,197

 

 

6,331

 

Total Assets

 

 

 

 

$

45,417

 

 

$

46,331

 

Short-term debt

 

 

 

 

788

 

 

32

 

Other current liabilities

 

 

 

 

2,974

 

 

4,148

 

Long-term debt

 

 

 

 

15,090

 

 

15,636

 

Deferred income taxes

 

 

 

 

4,343

 

 

5,400

 

Other long-term liabilities

 

 

 

 

6,310

 

 

5,658

 

Stockholders’ equity

 

 

 

 

12,600

 

 

12,819

 

Noncontrolling interests

 

 

 

 

3,312

 

 

2,638

 

Total Equity

 

 

 

 

$

15,912

 

 

$

15,457

 

Total Liabilities and Equity

 

 

 

 

$

45,417

 

 

$

46,331

 

Capitalization

 

 

 

 

 

 

 

Total debt

 

 

 

 

$

15,878

 

 

$

15,668

 

Total equity

 

 

 

 

15,912

 

 

15,457

 

Total

 

 

 

 

$

31,790

 

 

$

31,125

 

 

Capitalization Ratios

 

 

 

 

 

 

 

Total debt

 

 

 

 

50

%

 

50

%

Total equity

 

 

 

 

50

%

 

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 September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

233

 

 

2,003

 

 

122

 

 

22

 

 

184

 

 

11

 

 

$

41.29

 

 

$

2.36

 

 

$

18.87

 

Algeria

65

 

 

 

 

7

 

 

7

 

 

 

 

 

 

45.88

 

 

 

 

23.74

 

Other International

19

 

 

 

 

 

 

1

 

 

 

 

 

 

45.61

 

 

 

 

 

Total

317

 

 

2,003

 

 

129

 

 

30

 

 

184

 

 

11

 

 

$

42.49

 

 

$

2.36

 

 

$

19.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

224

 

 

2,186

 

 

117

 

 

21

 

 

201

 

 

11

 

 

$

43.48

 

 

$

2.41

 

 

$

15.83

 

Algeria

49

 

 

 

 

5

 

 

4

 

 

 

 

1

 

 

47.86

 

 

 

 

25.18

 

Other International

28

 

 

 

 

 

 

3

 

 

 

 

 

 

46.30

 

 

 

 

 

Total

301

 

 

2,186

 

 

122

 

 

28

 

 

201

 

 

12

 

 

$

44.45

 

 

$

2.41

 

 

$

16.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

230

 

 

2,164

 

 

124

 

 

63

 

 

593

 

 

34

 

 

$

36.52

 

 

$

1.89

 

 

$

17.78

 

Algeria

63

 

 

 

 

6

 

 

18

 

 

 

 

1

 

 

42.27

 

 

 

 

23.55

 

Other International

16

 

 

 

 

 

 

4

 

 

 

 

 

 

40.80

 

 

 

 

 

Total

309

 

 

2,164

 

 

130

 

 

85

 

 

593

 

 

35

 

 

$

37.91

 

 

$

1.89

 

 

$

18.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

233

 

 

2,424

 

 

128

 

 

64

 

 

662

 

 

35

 

 

$

47.37

 

 

$

2.44

 

 

$

17.08

 

Algeria

56

 

 

 

 

6

 

 

15

 

 

 

 

2

 

 

54.90

 

 

 

 

29.79

 

Other International

28

 

 

 

 

 

 

8

 

 

 

 

 

 

52.58

 

 

 

 

 

Total

317

 

 

2,424

 

 

134

 

 

87

 

 

662

 

 

37

 

 

$

49.16

 

 

$

2.44

 

 

$

17.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Sales Volumes

MBOE/d

 

Sales Volumes

MMBOE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2016

780

 

72

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2015

787

 

73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2016

800

 

219

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2015

855

 

234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

884

 

 

$

435

 

 

$

212

 

 

 

$

66

 

 

$

(2

)

 

$

(1

)

Algeria

276

 

 

 

 

15

 

 

 

 

 

 

 

 

Other International

79

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

1,239

 

 

$

435

 

 

$

227

 

 

 

$

66

 

 

$

(2

)

 

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

897

 

 

$

484

 

 

$

170

 

 

 

$

1

 

 

$

78

 

 

$

 

Algeria

214

 

 

 

 

13

 

 

 

 

 

 

 

 

Other International

118

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

1,229

 

 

$

484

 

 

$

183

 

 

 

$

1

 

 

$

78

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

United States

$

2,305

 

 

$

1,121

 

 

$

602

 

 

 

$

214

 

 

$

13

 

 

$

(1

)

Algeria

734

 

 

 

 

38

 

 

 

 

 

 

 

 

Other International

175

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

3,214

 

 

$

1,121

 

 

$

640

 

 

 

$

214

 

 

$

13

 

 

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

United States

$

3,018

 

 

$

1,612

 

 

$

596

 

 

 

$

6

 

 

$

228

 

 

$

17

 

Algeria

843

 

 

 

 

48

 

 

 

 

 

 

 

 

Other International

403

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

4,264

 

 

$

1,612

 

 

$

644

 

 

 

$

6

 

 

$

228

 

 

$

17

 

 

 

 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of October 31, 2016

 

 

 

 

 

Note: Guidance excludes 2016 sales volumes associated with the East Chalk, Wamsutter, Ozona, Elm Grove,

Hugoton, Hearne, and Carthage* divestitures.

 

 

 

 

 

 

 

4th-Qtr

 

Full-Year

 

 

Guidance (see Note)

 

Guidance (see Note)

 

 Units

 

 Units

 

 

 

 

 

 

 

 

 

Total Sales Volumes (MMBOE)

 

64

 

 

66

 

 

262

 

 

264

 

Total Sales Volumes (MBOE/d)

 

696

 

 

717

 

 

716

 

 

721

 

 

 

 

 

 

 

 

 

 

Oil (MBbl/d)

 

307

 

 

314

 

 

304

 

 

308

 

 

 

 

 

 

 

 

 

 

United States

 

223

 

 

227

 

 

225

 

 

227

 

Algeria

 

57

 

 

59

 

 

61

 

 

62

 

Ghana

 

27

 

 

28

 

 

18

 

 

19

 

 

 

 

 

 

 

 

 

 

Natural Gas (MMcf/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

1,685

 

 

1,725

 

 

1,785

 

 

1,800

 

 

 

 

 

 

 

 

 

 

Natural Gas Liquids (MBbl/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

101

 

 

105

 

 

104

 

 

106

 

Algeria

 

6

 

 

8

 

 

5

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ / Unit

 

$ / Unit

Price Differentials vs NYMEX (w/o hedges)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil ($/Bbl)

 

(5.20

)

 

(1.40

)

 

(5.50

)

 

(2.50

)

 

 

 

 

 

 

 

 

 

United States

 

(6.00

)

 

(2.00

)

 

(6.00

)

 

(3.00

)

Algeria

 

(3.00

)

 

 

 

(4.00

)

 

(1.00

)

Ghana

 

(3.00

)

 

 

 

(4.00

)

 

(1.00

)

 

 

 

 

 

 

 

 

 

Natural Gas ($/Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

(0.45

)

 

(0.35

)

 

(0.45

)

 

(0.35

)

 

 

 

 

 

 

 

 

 

 

* Pending

 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of October 31, 2016

 

 

 

 

 

Note: Guidance excludes items affecting comparability.

 

 

 

 

 

 

 

4th-Qtr

 

Full-Year

 

 

Guidance (see Note)

 

Guidance (see Note)

 

 

 $ MM

 

 $ MM

Other Revenues

 

 

 

 

 

 

 

 

Marketing and Gathering Margin

 

45

 

 

65

 

 

185

 

 

195

 

Minerals and Other

 

35

 

 

55

 

 

170

 

 

180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ / BOE

 

$ / BOE

Costs and Expenses

 

 

 

 

 

 

 

 

Oil & Gas Direct Operating

 

3.60

 

 

3.90

 

 

2.95

 

 

3.05

 

Oil & Gas Transportation

 

3.35

 

 

3.55

 

 

3.35

 

 

3.45

 

Depreciation, Depletion, and Amortization

 

15.25

 

 

15.75

 

 

14.80

 

 

15.00

 

Production Taxes (% of Product Revenue)

 

7.5

%

 

8.5

%

 

8.0

%

 

9.0

%

 

 

 

 

 

 

 

 

 

 

 

$ MM

 

$ MM

 

 

 

 

 

 

 

 

 

General and Administrative (excludes restructuring charges)

 

245

 

 

265

 

 

980

 

 

1,005

 

Other Operating Expense

 

20

 

 

30

 

 

75

 

 

85

 

Exploration Expense

 

 

 

 

 

 

 

 

Non-Cash

 

165

 

 

185

 

 

450

 

 

550

 

Cash

 

50

 

 

70

 

 

250

 

 

270

 

Interest Expense (net)

 

220

 

 

235

 

 

875

 

 

890

 

Other (Income) Expense

 

 

 

5

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

Taxes

 

 

 

 

 

 

 

 

Algeria  (100% current)

 

60

%

 

70

%

 

65

%

 

75

%

Rest of Company  (60% Current/40% Deferred for Q4 and

30% Current/70% Deferred for Total Year)

 

25

%

 

35

%

 

25

%

 

35

%

 

 

 

 

 

 

 

 

 

Noncontrolling Interest

 

65

 

 

70

 

 

265

 

 

270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avg. Shares Outstanding (MM)

 

 

 

 

 

 

 

 

Basic

 

550

 

 

552

 

 

521

 

 

522

 

Diluted

 

550

 

 

552

 

 

522

 

 

523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Investment (Excluding Western Gas Partners, LP)

$ MM

 

$ MM

 

 

 

 

 

 

 

 

 

APC Capital Expenditures

 

885

 

 

985

 

 

2,850

 

 

2,950

 

 

 

 

 

 

 

 

 

 

 

 

Anadarko Petroleum Corporation

Commodity Hedge Positions

As of October 31, 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 October 31, 2016

 

 

 

 

 

 

Instrument

Notional Amt.

Reference Period

Mandatory

Termination Date

Rate Paid

Rate Received

Swap

$500 Million

Sept. 2016 – 2046

Sept. 2018

6.559%

3M LIBOR

Swap

$300 Million

Sept. 2016 – 2046

Sept. 2020

6.509%

3M LIBOR

Swap

$450 Million

Sept. 2017 – 2047

Sept. 2018

6.445%

3M LIBOR

Swap

$100 Million

Sept. 2017 – 2047

Sept. 2020

6.891%

3M LIBOR

Swap

$250 Million

Sept. 2017 – 2047

Sept. 2021

6.570%

3M LIBOR

 

 

 

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

160

 

 

2,017

 

 

102

 

 

598

 

 

164

 

 

2,007

 

 

117

 

 

615

 

Deepwater Gulf of Mexico

58

 

 

85

 

 

7

 

 

79

 

 

46

 

 

221

 

 

6

 

 

89

 

International and Alaska

93

 

 

 

 

6

 

 

99

 

 

107

 

 

 

 

7

 

 

114

 

Same-Store Sales

311

 

 

2,102

 

 

115

 

 

776

 

 

317

 

 

2,228

 

 

130

 

 

818

 

Divestitures*

4

 

 

201

 

 

13

 

 

51

 

 

18

 

 

510

 

 

13

 

 

116

 

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

156

 

 

1,925

 

 

109

 

 

586

 

 

170

 

 

1,771

 

 

110

 

 

575

 

Deepwater Gulf of Mexico

56

 

 

73

 

 

6

 

 

74

 

 

57

 

 

113

 

 

7

 

 

83

 

International and Alaska

81

 

 

 

 

5

 

 

86

 

 

87

 

 

 

 

6

 

 

93

 

Same-Store Sales

293

 

 

1,998

 

 

120

 

 

746

 

 

314

 

 

1,884

 

 

123

 

 

751

 

Divestitures*

3

 

 

190

 

 

11

 

 

46

 

 

4

 

 

470

 

 

13

 

 

95

 

Total

296

 

 

2,188

 

 

131

 

 

792

 

 

318

 

 

2,354

 

 

136

 

 

846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30, 2016

 

Quarter Ended September 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

158

 

 

1,824

 

 

109

 

 

571

 

 

155

 

 

1,648

 

 

96

 

 

526

 

Deepwater Gulf of Mexico

65

 

 

77

 

 

6

 

 

84

 

 

55

 

 

158

 

 

7

 

 

88

 

International and Alaska

93

 

 

 

 

7

 

 

100

 

 

85

 

 

 

 

5

 

 

90

 

Same-Store Sales

316

 

 

1,901

 

 

122

 

 

755

 

 

295

 

 

1,806

 

 

108

 

 

704

 

Divestitures*

1

 

 

102

 

 

7

 

 

25

 

 

6

 

 

380

 

 

14

 

 

83

 

Total

317

 

 

2,003

 

 

129

 

 

780

 

 

301

 

 

2,186

 

 

122

 

 

787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*    Includes East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, Carthage (pending), EOR, Bossier, and Powder River Basin CBM.

 

Average Daily Sales Volumes

 

Nine Months Ended September 30, 2016

 

Nine Months Ended September 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

158

 

 

1,922

 

 

108

 

 

587

 

 

163

 

 

1,807

 

 

107

 

 

572

 

Deepwater Gulf of Mexico

59

 

 

78

 

 

6

 

 

78

 

 

53

 

 

164

 

 

7

 

 

87

 

International and Alaska

89

 

 

 

 

6

 

 

95

 

 

92

 

 

 

 

6

 

 

98

 

Same-Store Sales

306

 

 

2,000

 

 

120

 

 

760

 

 

308

 

 

1,971

 

 

120

 

 

757

 

Divestitures*

3

 

 

164

 

 

10

 

 

40

 

 

9

 

 

453

 

 

14

 

 

98

 

Total

309

 

 

2,164

 

 

130

 

 

800

 

 

317

 

 

2,424

 

 

134

 

 

855

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

 

 

 

 

 

 

Oil & Condensate MBbls/d

 

Natural Gas MMcf/d

 

NGLs MBbls/d

 

Total MBOE/d

U.S. Onshore

 

 

 

 

 

 

 

 

163

 

 

1,788

 

 

105

 

 

566

 

Deepwater Gulf of Mexico

 

 

 

 

 

 

 

 

53

 

 

152

 

 

7

 

 

85

 

International and Alaska

 

 

 

 

 

 

 

 

94

 

 

 

 

6

 

 

100

 

Same-Store Sales

 

 

 

 

 

 

 

 

310

 

 

1,940

 

 

118

 

 

751

 

Divestitures*

 

 

 

 

 

 

 

 

7

 

 

394

 

 

12

 

 

85

 

Total

 

 

 

 

 

 

 

 

317

 

 

2,334

 

 

130

 

 

836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*    Includes East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, Carthage (pending), EOR, Bossier, and Powder River Basin CBM.

 

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