Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ANADARKO PETROLEUM CORP | apc20162q-8xk.htm |
Exhibit 99
NEWS
ANADARKO ANNOUNCES SECOND-QUARTER 2016 RESULTS
HOUSTON, July 26, 2016 – 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.”
2
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.
3
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.
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.
4
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
5
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. |
6
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. |
7
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 | |||||||
8
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 | % | |||||
9
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 | ||||||||||||
10
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 | ) | ||||
11
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 | ||||||||
12
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 |
13
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. |