Attached files
| file | filename |
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| 8-K - 8-K - ANADARKO PETROLEUM CORP | apc20173q-8xk.htm |
Exhibit 99
NEWS
ANADARKO ANNOUNCES THIRD-QUARTER
2017 RESULTS
HOUSTON, Oct. 31, 2017 – Anadarko Petroleum Corporation (NYSE: APC) today announced its third-quarter 2017 results, reporting a net loss attributable to common stockholders of $699 million, or $1.27 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by $272 million, or $0.50 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the third quarter of 2017 was $639 million.
RECENT HIGHLIGHTS
• | Announced a $2.5 billion share-repurchase program and entered into an accelerated share repurchase (ASR) agreement to execute upon the first $1.0 billion by year end |
• | Achieved double-digit oil-volume growth over second-quarter 2017 in the Delaware Basin, DJ Basin and deepwater Gulf of Mexico assets |
• | Improved oil production mix to 57 percent versus 42 percent in the third quarter of 2016, significantly improving margins per barrel |
• | Entered into an agreement to sell the company’s Moxa asset in southwest Wyoming for approximately $350 million |
• | Received clarity on the Ghana maritime boundary, enabling additional high-margin oil development, and completed the foundational Legal and Contractual Framework for the Mozambique LNG project |
“I am very proud of the efforts exhibited by our people and the results achieved in the face of an unusually active hurricane season in the Gulf of Mexico and a continuing volatile commodity environment,” said Al Walker, Anadarko Chairman, President and CEO. “We have made significant progress in shifting our production mix toward higher-value oil, which has improved our margins per barrel(2) by about 34 percent year over year. We expect to improve our margins further as we finalize the sale of our Moxa gas asset, continue focusing investments in our high-quality oil plays, and drive greater efficiencies into the system. Although we have adjusted our full-year sales-volume guidance to reflect the impacts of hurricanes Harvey, Irma and Nate, as well as the sale of our Moxa asset, we still expect to exit 2017 with production
2
rates of approximately 150,000 barrels of oil per day combined from the Delaware and DJ basins, and more than 130,000 barrels of oil per day from the deepwater Gulf of Mexico.
“Looking to 2018, we will continue to demonstrate financial discipline as a foundational principle,” added Walker. “We will remain focused on returns by continuing to allocate upstream capital toward the higher-margin assets in our portfolio, which should generate substantial free cash flow in a $50 oil-price environment, with total capital spending, including Anadarko midstream spending on infrastructure in the Delaware Basin, inside of discretionary cash flow from operations.”
OPERATIONAL HIGHLIGHTS
Anadarko’s third-quarter 2017 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 58 million barrels of oil equivalent (BOE), or an average of 626,000 BOE per day.
In the Delaware Basin, Anadarko remains on track to achieve its expected exit rate of approximately 50,000 barrels of oil per day (BOPD). In the third quarter, the company achieved a new oil sales-volume record of 44,500 BOPD, while averaging 37,000 BOPD - a 13-percent increase over the second quarter of 2017. Anadarko averaged 16 rigs and six completions crews in the basin during the quarter, as it continued to focus on capturing operatorship over approximately 70 percent of its gross acreage position. Anadarko also made significant progress in applying its proven development model to the Delaware Basin, which includes building gathering and processing infrastructure to enable future growth and expanding takeaway capacity.
Anadarko also has a clear line of sight to reaching its expected exit rate of about 100,000 BOPD in the DJ Basin, where in the third quarter it achieved an oil production record of more than 90,000 BOPD, while averaging 83,000 BOPD, representing a 10-percent increase over the prior quarter. The company averaged six operated rigs and four completions crews in the basin during the quarter. The number of wells turned to sales increased by 70 percent versus the second-quarter 2017. The company continues to see strong results from its new completion design, which has been applied to more than 70 wells, the majority of which have been producing more than 150 days. These wells are demonstrating a cumulative oil uplift of more than 40 percent when compared to the previous design.
In the deepwater Gulf of Mexico, the company increased oil production by more than 10 percent relative to the second quarter of 2017, averaging 126,000 BOPD during the quarter. Production of approximately 840,000 BOE was deferred during the quarter as a result of hurricanes Harvey and Irma. The company’s hub-and-spoke infrastructure continues to deliver significant value with new tiebacks at Horn Mountain and Marlin. Anadarko also added new tieback opportunities as the apparent high bidder on 10 blocks in the most recent Gulf of Mexico lease sale.
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International and Alaska sales volume averaged 102,000 barrels per day, slightly less than the prior quarter due to the timing of liftings in Algeria. The International Tribunal for the Law of the Sea (ITLOS) has defined the border between Ghana and Côte d’Ivoire, which enables continued development in the TEN field. In addition, the partnership received approval from the Ghanaian government for the Jubilee full-field plan of development earlier this month, with drilling operations expected to commence in 2018. Anadarko also is continuing to generate substantial momentum with its Mozambique LNG project, having finalized the “marine concession” agreements with the Government of Mozambique during the quarter. These agreements marked the completion of the foundational Legal and Contractual Framework. Subsequent to quarter end, Anadarko also reached a 20-year Sale and Purchase Agreement (SPA) for 2.6 million tonnes of LNG per annum with PTT Public Company Limited of Thailand. The SPA is pending approval by the Government of Thailand.
OPERATIONS REPORT
For additional details on Anadarko’s third-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL SUMMARY
Anadarko ended the third quarter of 2017 with $5.25 billion of cash on hand. In September, the company announced a $2.5 billion share-repurchase program, which is authorized to extend through the end of 2018. Subsequently, Anadarko entered into an ASR agreement to complete the repurchase of $1.0 billion of shares prior to the end of 2017. In October, Anadarko entered into a definitive agreement to sell its Moxa asset in southwest Wyoming for approximately $350 million.
CONFERENCE CALL TOMORROW AT 8:00 A.M. CDT, 9:00 A.M. EDT
Anadarko will host a conference call on Wednesday, Nov. 1, 2017, at 8 a.m. Central (9 a.m. Eastern) to discuss third-quarter results. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 2812178. 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.
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FINANCIAL DATA
Ten pages of summary financial data follow, including current hedge positions, a reconciliation of “divestiture-adjusted” or “same-store” sales, and updated financial and production guidance.
(1) See the accompanying table for details of certain items affecting comparability.
(2) See the accompanying Adjusted EBITDAX (Margin) table for a reconciliation of GAAP to the non-GAAP financial measure and a statement indicating why management believes the non-GAAP financial measure provides useful information for investors.
Anadarko Petroleum Corporation’s mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As of year-end 2016, the company had 1.72 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko’s ability to realize its expectations regarding performance; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to finalize the capital program for 2018; to meet financial and operating guidance and achieve the production levels identified in this news release; to meet the long-term goals identified in this news release; to consummate the transactions described in this release; to successfully complete the share-repurchase program; to successfully drill, complete, test and produce the wells identified in this news release; to timely complete and commercially operate the projects, infrastructure and drilling prospects identified in this news release; to finalize the necessary steps to ensure operatorship; and to successfully plan, secure additional government approvals, enter into long-term sales contracts, finance, build, and operate the necessary infrastructure and LNG park in Mozambique. See “Risk Factors” in the company’s 2016 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
# # #
Anadarko Contacts
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
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Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Below are reconciliations of certain GAAP to non-GAAP financial measures, each as required under Regulation G of the Securities Exchange Act of 1934. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.
Management uses adjusted net income (loss) to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain noncash and/or other items that management does not consider to be indicative of the Company’s performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company’s operating and financial performance across periods, as well as facilitating comparisons to others in the Company’s industry.
Quarter Ended September 30, 2017 | ||||||||||||
Before | After | Per Share | ||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
Net income (loss) attributable to common stockholders (GAAP) | $ | (699 | ) | $ | (1.27 | ) | ||||||
Adjustments for certain items affecting comparability | ||||||||||||
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* | $ | (98 | ) | (62 | ) | (0.11 | ) | |||||
Gains (losses) on divestitures, net | (194 | ) | (123 | ) | (0.23 | ) | ||||||
Impairments - exploration assets | (106 | ) | (82 | ) | (0.15 | ) | ||||||
Change in uncertain tax positions | (5 | ) | (0.01 | ) | ||||||||
Certain items affecting comparability | $ | (398 | ) | (272 | ) | (0.50 | ) | |||||
Adjusted net income (loss) (Non-GAAP) | $ | (427 | ) | $ | (0.77 | ) | ||||||
* | Includes $(39) million related to interest-rate derivatives and $(59) million related to commodity derivatives. |
Quarter Ended September 30, 2016 | ||||||||||||
Before | After | Per Share | ||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
Net income (loss) attributable to common stockholders (GAAP) | $ | (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 | — | 9 | 0.02 | |||||||||
Certain items affecting comparability | $ | (602 | ) | (371 | ) | (0.72 | ) | |||||
Adjusted net income (loss) (Non-GAAP) | $ | (459 | ) | $ | (0.89 | ) | ||||||
* | Includes $(84) million related to interest-rate derivatives and $(4) million related to commodity derivatives. |
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Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Management believes that the presentation of Adjusted EBITDAX (Margin) provides information useful in assessing the Company’s operating and financial performance across periods.
Quarter Ended September 30, | |||||||
millions | 2017 | 2016 | |||||
Net income (loss) attributable to common stockholders (GAAP) | $ | (699 | ) | $ | (830 | ) | |
Interest expense | 230 | 220 | |||||
Income tax expense (benefit) | (425 | ) | (260 | ) | |||
DD&A | 1,083 | 1,069 | |||||
Exploration expense | 751 | 304 | |||||
(Gains) losses on divestitures, net | 194 | 414 | |||||
Impairments | — | 27 | |||||
Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives | 98 | 88 | |||||
Restructuring charges | 3 | 112 | |||||
Consolidated Adjusted EBITDAX (Margin) (Non-GAAP) | $ | 1,235 | $ | 1,144 | |||
Total barrels of oil equivalent (BOE) | 58 | 72 | |||||
Consolidated Adjusted EBITDAX (Margin) per BOE | $ | 21.29 | $ | 15.89 | |||
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, 2017 | |||||||||||||
Anadarko | |||||||||||||
Anadarko | WGP* | excluding | |||||||||||
millions | Consolidated | Consolidated | WGP | ||||||||||
Total debt (GAAP) | $ | 15,573 | $ | 3,372 | $ | 12,201 | |||||||
Less cash and cash equivalents | 5,251 | 153 | 5,098 | ||||||||||
Net debt (Non-GAAP) | $ | 10,322 | $ | 3,219 | $ | 7,103 | |||||||
Anadarko | |||||||||||||
Anadarko | excluding | ||||||||||||
millions | Consolidated | WGP | |||||||||||
Net debt | $ | 10,322 | $ | 7,103 | |||||||||
Total equity | 13,922 | 10,782 | |||||||||||
Adjusted capitalization | $ | 24,244 | $ | 17,885 | |||||||||
Net debt to adjusted capitalization ratio | 43 | % | 40 | % | |||||
* | Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko, and Western Gas Partners, LP (WES) is a consolidated subsidiary of WGP. |
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Anadarko Petroleum Corporation
Cash Flow Information
(Unaudited)
Quarter Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | $ | (641 | ) | $ | (747 | ) | $ | (1,250 | ) | $ | (2,356 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||||||||||
Depreciation, depletion, and amortization | 1,083 | 1,069 | 3,235 | 3,202 | |||||||||||
Deferred income taxes | (854 | ) | (301 | ) | (1,026 | ) | (1,121 | ) | |||||||
Dry hole expense and impairments of unproved properties | 678 | 255 | 2,144 | 300 | |||||||||||
Impairments | — | 27 | 383 | 61 | |||||||||||
(Gains) losses on divestitures, net | 194 | 414 | (815 | ) | 516 | ||||||||||
Loss on early extinguishment of debt | — | — | 2 | 124 | |||||||||||
Total (gains) losses on derivatives, net | 82 | 24 | (33 | ) | 634 | ||||||||||
Operating portion of net cash received (paid) in settlement of derivative instruments | 16 | 64 | 21 | 229 | |||||||||||
Other | 68 | 53 | 225 | 256 | |||||||||||
Changes in assets and liabilities | 13 | (73 | ) | (267 | ) | 32 | |||||||||
Net Cash Provided by (Used in) Operating Activities* | $ | 639 | $ | 785 | $ | 2,619 | $ | 1,877 | |||||||
Net Cash Provided by (Used in) Investing Activities | $ | (1,242 | ) | $ | (291 | ) | $ | (26 | ) | $ | (1,256 | ) | |||
Net Cash Provided by (Used in) Financing Activities | $ | (155 | ) | $ | 2,092 | $ | (527 | ) | $ | 2,421 | |||||
Capital Expenditures | |||||||||||||||
Exploration and production and other | $ | 976 | $ | 586 | $ | 2,877 | $ | 1,921 | |||||||
Midstream - Anadarko** | 131 | 16 | 258 | 45 | |||||||||||
Midstream - WES | 224 | 95 | 661 | 355 | |||||||||||
Total | 1,331 | 697 | 3,796 | 2,321 | |||||||||||
* | Restructuring charges (excluding noncash share-based compensation) were $3 million for the quarter ended September 30, 2017, $110 million for the quarter ended September 30, 2016, $20 million for the nine months ended September 30, 2017, and $334 million for the nine months ended September 30, 2016. Cash payments for restructuring charges were $2 million for the quarter ended September 30, 2017, $35 million for the quarter ended September 30, 2016, $52 million for the nine months ended September 30, 2017, and $217 million for the nine months ended September 30, 2016. |
** | Excludes Western Gas Partners, LP (WES). |
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Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended | Nine Months Ended | ||||||||||||||
Summary Financial Information | September 30, | September 30, | |||||||||||||
millions except per-share amounts | 2017 | 2016 | 2017 | 2016 | |||||||||||
Consolidated Statements of Income | |||||||||||||||
Revenues and Other | |||||||||||||||
Oil sales | $ | 1,567 | $ | 1,239 | $ | 4,652 | $ | 3,214 | |||||||
Natural-gas sales | 269 | 435 | 1,090 | 1,121 | |||||||||||
Natural-gas liquids sales | 265 | 227 | 768 | 640 | |||||||||||
Gathering, processing, and marketing sales | 509 | 350 | 1,417 | 895 | |||||||||||
Gains (losses) on divestitures and other, net | (114 | ) | (358 | ) | 1,052 | (388 | ) | ||||||||
Total | 2,496 | 1,893 | 8,979 | 5,482 | |||||||||||
Costs and Expenses | |||||||||||||||
Oil and gas operating | 257 | 198 | 748 | 608 | |||||||||||
Oil and gas transportation | 220 | 256 | 698 | 744 | |||||||||||
Exploration | 751 | 304 | 2,371 | 506 | |||||||||||
Gathering, processing, and marketing | 398 | 291 | 1,108 | 758 | |||||||||||
General and administrative | 280 | 362 | 840 | 1,116 | |||||||||||
Depreciation, depletion, and amortization | 1,083 | 1,069 | 3,235 | 3,202 | |||||||||||
Production, property, and other taxes | 159 | 148 | 449 | 422 | |||||||||||
Impairments | — | 27 | 383 | 61 | |||||||||||
Other operating expense | 123 | 31 | 157 | 54 | |||||||||||
Total | 3,271 | 2,686 | 9,989 | 7,471 | |||||||||||
Operating Income (Loss) | (775 | ) | (793 | ) | (1,010 | ) | (1,989 | ) | |||||||
Other (Income) Expense | |||||||||||||||
Interest expense | 230 | 220 | 680 | 657 | |||||||||||
Loss on early extinguishment of debt | — | — | 2 | 124 | |||||||||||
(Gains) losses on derivatives, net | 82 | 25 | (33 | ) | 629 | ||||||||||
Other (income) expense, net | (21 | ) | (31 | ) | (43 | ) | (86 | ) | |||||||
Total | 291 | 214 | 606 | 1,324 | |||||||||||
Income (Loss) Before Income Taxes | (1,066 | ) | (1,007 | ) | (1,616 | ) | (3,313 | ) | |||||||
Income tax expense (benefit) | (425 | ) | (260 | ) | (366 | ) | (957 | ) | |||||||
Net Income (Loss) | (641 | ) | (747 | ) | (1,250 | ) | (2,356 | ) | |||||||
Net income (loss) attributable to noncontrolling interests | 58 | 83 | 182 | 200 | |||||||||||
Net Income (Loss) Attributable to Common Stockholders | $ | (699 | ) | $ | (830 | ) | $ | (1,432 | ) | $ | (2,556 | ) | |||
Per Common Share | |||||||||||||||
Net income (loss) attributable to common stockholders—basic | $ | (1.27 | ) | $ | (1.61 | ) | $ | (2.60 | ) | $ | (5.00 | ) | |||
Net income (loss) attributable to common stockholders—diluted | $ | (1.27 | ) | $ | (1.61 | ) | $ | (2.61 | ) | $ | (5.00 | ) | |||
Average Number of Common Shares Outstanding—Basic | 553 | 517 | 552 | 512 | |||||||||||
Average Number of Common Shares Outstanding—Diluted | 553 | 517 | 552 | 512 | |||||||||||
Exploration Expense | |||||||||||||||
Dry hole expense | $ | 565 | $ | 203 | $ | 1,408 | $ | 209 | |||||||
Impairments of unproved properties | 113 | 52 | 736 | 91 | |||||||||||
Geological and geophysical, exploration overhead, and other expense | 73 | 49 | 227 | 206 | |||||||||||
Total | 751 | 304 | 2,371 | 506 | |||||||||||
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Anadarko Petroleum Corporation
(Unaudited)
September 30, | December 31, | ||||||||||
millions | 2017 | 2016 | |||||||||
Condensed Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 5,251 | $ | 3,184 | |||||||
Accounts receivable, net of allowance | 1,882 | 1,728 | |||||||||
Other current assets | 340 | 354 | |||||||||
Net properties and equipment | 27,832 | 32,168 | |||||||||
Other assets | 2,152 | 2,226 | |||||||||
Goodwill and other intangible assets | 5,671 | 5,904 | |||||||||
Total Assets | $ | 43,128 | $ | 45,564 | |||||||
Short-term debt | 149 | 42 | |||||||||
Other current liabilities | 3,534 | 3,286 | |||||||||
Long-term debt | 15,424 | 15,281 | |||||||||
Deferred income taxes | 3,378 | 4,324 | |||||||||
Asset retirement obligations | 2,747 | 2,802 | |||||||||
Other long-term liabilities | 3,974 | 4,332 | |||||||||
Common stock | 57 | 57 | |||||||||
Paid-in capital | 11,972 | 11,875 | |||||||||
Retained earnings | 160 | 1,704 | |||||||||
Treasury stock | (1,070 | ) | (1,033 | ) | |||||||
Accumulated other comprehensive income (loss) | (337 | ) | (391 | ) | |||||||
Total stockholders’ equity | 10,782 | 12,212 | |||||||||
Noncontrolling interests | 3,140 | 3,285 | |||||||||
Total Equity | 13,922 | 15,497 | |||||||||
Total Liabilities and Equity | $ | 43,128 | $ | 45,564 | |||||||
Capitalization | |||||||||||
Total debt | $ | 15,573 | $ | 15,323 | |||||||
Total equity | 13,922 | 15,497 | |||||||||
Total | $ | 29,495 | $ | 30,820 | |||||||
Capitalization Ratios | |||||||||
Total debt | 53 | % | 50 | % | |||||
Total equity | 47 | % | 50 | % | |||||
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Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices | |||||||||||||||||||||||||||||
Average Daily Sales Volumes | Sales Volumes | Average Sales Price | |||||||||||||||||||||||||||
Oil | Natural Gas | NGLs | Oil | Natural Gas | NGLs | Oil | Natural Gas | NGLs | |||||||||||||||||||||
MBbls/d | MMcf/d | MBbls/d | MMBbls | Bcf | MMBbls | Per Bbl | Per Mcf | Per Bbl | |||||||||||||||||||||
Quarter Ended September 30, 2017 | |||||||||||||||||||||||||||||
United States | 266 | 1,086 | 88 | 25 | 100 | 9 | $ | 46.89 | $ | 2.69 | $ | 31.07 | |||||||||||||||||
Algeria | 60 | — | 4 | 6 | — | — | 52.91 | — | 32.98 | ||||||||||||||||||||
Other International | 27 | — | — | 2 | — | — | 51.95 | — | — | ||||||||||||||||||||
Total | 353 | 1,086 | 92 | 33 | 100 | 9 | $ | 48.31 | $ | 2.69 | $ | 31.15 | |||||||||||||||||
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 | |||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||
United States | 259 | 1,392 | 96 | 71 | 380 | 27 | $ | 47.63 | $ | 2.87 | $ | 27.43 | |||||||||||||||||
Algeria | 63 | — | 5 | 18 | — | 1 | 51.54 | — | 34.02 | ||||||||||||||||||||
Other International | 28 | — | — | 7 | — | — | 51.70 | — | — | ||||||||||||||||||||
Total | 350 | 1,392 | 101 | 96 | 380 | 28 | $ | 48.66 | $ | 2.87 | $ | 27.77 | |||||||||||||||||
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 | |||||||||||||||||
Average Daily Sales Volumes MBOE/d | Sales Volumes MMBOE | ||||||||||||||||||||||||||||
Quarter Ended September 30, 2017 | 626 | 58 | |||||||||||||||||||||||||||
Quarter Ended September 30, 2016 | 780 | 72 | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2017 | 683 | 187 | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | 800 | 219 | |||||||||||||||||||||||||||
Sales Revenue and Commodity Derivatives | ||||||||||||||||||||||||
Sales | Net Cash Received (Paid) from Settlement of Commodity Derivatives | |||||||||||||||||||||||
millions | Oil | Natural Gas | NGLs | Oil | Natural Gas | NGLs | ||||||||||||||||||
Quarter Ended September 30, 2017 | ||||||||||||||||||||||||
United States | $ | 1,145 | $ | 269 | $ | 253 | $ | 12 | $ | 4 | $ | — | ||||||||||||
Algeria | 291 | — | 12 | — | — | — | ||||||||||||||||||
Other International | 131 | — | — | — | — | — | ||||||||||||||||||
Total | $ | 1,567 | $ | 269 | $ | 265 | $ | 12 | $ | 4 | $ | — | ||||||||||||
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 | ) | ||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||
United States | $ | 3,368 | $ | 1,090 | $ | 720 | $ | 27 | $ | (1 | ) | $ | (3 | ) | ||||||||||
Algeria | 885 | — | 48 | — | — | — | ||||||||||||||||||
Other International | 399 | — | — | — | — | — | ||||||||||||||||||
Total | $ | 4,652 | $ | 1,090 | $ | 768 | $ | 27 | $ | (1 | ) | $ | (3 | ) | ||||||||||
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 | ) | |||||||||||
11
Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of October 31, 2017 | ||||||||||||||
Note: Guidance excludes 2017 sales volumes associated with the Eagleford, Marcellus, West Chalk/Eaglebine, Utah CBM and Moxa divestitures. | ||||||||||||||
4th-Qtr | Full-Year | |||||||||||||
Guidance (see Note) | Guidance (see Note) | |||||||||||||
Units | Units | |||||||||||||
Total Sales Volumes (MMBOE) | 56 | — | 58 | 224 | — | 228 | ||||||||
Total Sales Volumes (MBOE/d) | 609 | — | 630 | 614 | — | 625 | ||||||||
Oil (MBbl/d) | 357 | — | 364 | 343 | — | 348 | ||||||||
United States | 279 | — | 283 | 257 | — | 260 | ||||||||
Algeria | 51 | — | 53 | 59 | — | 60 | ||||||||
Ghana | 27 | — | 28 | 27 | — | 28 | ||||||||
Natural Gas (MMcf/d) | ||||||||||||||
United States | 1,000 | — | 1,035 | 1,065 | — | 1,085 | ||||||||
Natural Gas Liquids (MBbl/d) | ||||||||||||||
United States | 84 | — | 88 | 87 | — | 90 | ||||||||
Algeria | 2 | — | 4 | 5 | — | 6 | ||||||||
$ / Unit | $ / Unit | |||||||||||||
Price Differentials vs NYMEX (w/o hedges) | ||||||||||||||
Oil ($/Bbl) | (1.50 | ) | — | 2.50 | (2.75 | ) | — | 1.25 | ||||||
United States | (2.00 | ) | — | 2.00 | (3.00 | ) | — | 1.00 | ||||||
Algeria | — | — | 4.00 | (2.00 | ) | — | 2.00 | |||||||
Ghana | — | — | 4.00 | (2.00 | ) | — | 2.00 | |||||||
Natural Gas ($/Mcf) | ||||||||||||||
United States | (0.40 | ) | — | (0.20 | ) | (0.35 | ) | — | 0.25 | |||||
12
Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of October 31, 2017 | ||||||||||||||
Note: Guidance excludes items affecting comparability. | ||||||||||||||
4th-Qtr | Full-Year | |||||||||||||
Guidance (see Note) | Guidance (see Note) | |||||||||||||
$ MM | $ MM | |||||||||||||
Other Revenues | ||||||||||||||
Marketing and Gathering Margin | 100 | — | 110 | 410 | — | 420 | ||||||||
Minerals and Other | 45 | — | 65 | 280 | — | 300 | ||||||||
$ / BOE | $ / BOE | |||||||||||||
Costs and Expenses | ||||||||||||||
Oil & Gas Direct Operating | 4.40 | — | 4.65 | 3.95 | — | 4.30 | ||||||||
Oil & Gas Transportation | 3.50 | — | 3.70 | 3.60 | — | 3.80 | ||||||||
Depreciation, Depletion, and Amortization | 19.00 | — | 19.20 | 17.75 | — | 17.85 | ||||||||
Production Taxes (% of Product Revenue) | 6.0 | % | — | 7.0 | % | 6.0 | % | — | 7.0 | % | ||||
$ MM | $ MM | |||||||||||||
General and Administrative | 240 | — | 260 | 1,060 | — | 1,080 | ||||||||
Other Operating Expense | 30 | — | 50 | 185 | — | 205 | ||||||||
Exploration Expense | ||||||||||||||
Non-Cash | 10 | — | 40 | 1,445 | — | 1,475 | ||||||||
Cash | 65 | — | 85 | 280 | — | 300 | ||||||||
Interest Expense (net) | 220 | — | 235 | 900 | — | 915 | ||||||||
Other (Income) Expense | (25 | ) | — | (15 | ) | (65 | ) | — | (55 | ) | ||||
Taxes | ||||||||||||||
Algeria (100% Current) | 60 | % | — | 70 | % | 60 | % | — | 70 | % | ||||
Rest of Company (60% Current/40% Deferred for Q4 and (50)% Current/150% Deferred for Total Year) | 30 | % | — | 40 | % | 30 | % | — | 40 | % | ||||
Noncontrolling Interest | 50 | — | 60 | 230 | — | 240 | ||||||||
Avg. Shares Outstanding (MM) | ||||||||||||||
Basic | 534 | — | 538 | 548 | — | 549 | ||||||||
Diluted | 534 | — | 538 | 548 | — | 549 | ||||||||
Capital Investment (Excluding Western Gas Partners, LP) | $ MM | $ MM | ||||||||||||
APC Capital Expenditures | 1,065 | — | 1,265 | 4,200 | — | 4,400 | ||||||||
13
Anadarko Petroleum Corporation | |||||||||
Commodity Hedge Positions | |||||||||
As of October 31, 2017 | |||||||||
Weighted Average Price per barrel | |||||||||
Volume (MBbls/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||
Oil | |||||||||
Three-Way Collars | |||||||||
2017 | |||||||||
WTI | 68 | $ | 40.00 | $ | 50.00 | $ | 58.84 | ||
Brent | 23 | $ | 40.00 | $ | 50.00 | $ | 62.64 | ||
91 | $ | 40.00 | $ | 50.00 | $ | 59.80 | |||
Volume | Weighted Average Price per MMBtu | ||||||||
(thousand | |||||||||
MMBtu/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||
Natural Gas | |||||||||
Three-Way Collars | |||||||||
2017 | 857 | $ | 2.10 | $ | 2.85 | $ | 3.64 | ||
2018 | 250 | $ | 2.00 | $ | 2.75 | $ | 3.54 | ||
Interest-Rate Derivatives | |||||
As of October 31, 2017 | |||||
Instrument | Notional Amt. | Reference Period | Mandatory Termination Date | Rate Paid | Rate Received |
Swap | $550 Million | Sept. 2016 – 2046 | Sept. 2020 | 6.418% | 3M LIBOR |
Swap | $250 Million | Sept. 2016 – 2046 | Sept. 2022 | 6.809% | 3M LIBOR |
Swap | $200 Million | Sept. 2017 – 2047 | Sept. 2018 | 6.049% | 3M LIBOR |
Swap | $100 Million | Sept. 2017 – 2047 | Sept. 2020 | 6.891% | 3M LIBOR |
Swap | $250 Million | Sept. 2017 – 2047 | Sept. 2021 | 6.570% | 3M LIBOR |
Swap | $250 Million | Sept. 2017 – 2047 | Sept. 2023 | 6.761% | 3M LIBOR |
14
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes | |||||||||||||||||||||||
Quarter Ended September 30, 2017 | Quarter Ended September 30, 2016 | ||||||||||||||||||||||
Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | ||||||||||||||||
U.S. Onshore | 129 | 980 | 78 | 370 | 126 | 1,034 | 78 | 376 | |||||||||||||||
Gulf of Mexico | 126 | 106 | 10 | 154 | 65 | 77 | 6 | 84 | |||||||||||||||
International and Alaska | 98 | — | 4 | 102 | 93 | — | 7 | 100 | |||||||||||||||
Same-Store Sales | 353 | 1,086 | 92 | 626 | 284 | 1,111 | 91 | 560 | |||||||||||||||
Divestitures* | — | — | — | — | 33 | 892 | 38 | 220 | |||||||||||||||
Total | 353 | 1,086 | 92 | 626 | 317 | 2,003 | 129 | 780 | |||||||||||||||
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | ||||||||||||||||
U.S. Onshore | 120 | 1,042 | 81 | 374 | 124 | 1,074 | 76 | 379 | |||||||||||||||
Gulf of Mexico | 121 | 118 | 10 | 151 | 59 | 78 | 6 | 78 | |||||||||||||||
International and Alaska | 102 | — | 5 | 107 | 89 | — | 6 | 95 | |||||||||||||||
Same-Store Sales | 343 | 1,160 | 96 | 632 | 272 | 1,152 | 88 | 552 | |||||||||||||||
Divestitures* | 7 | 232 | 5 | 51 | 37 | 1,012 | 42 | 248 | |||||||||||||||
Total | 350 | 1,392 | 101 | 683 | 309 | 2,164 | 130 | 800 | |||||||||||||||
* | Includes Eagleford, Marcellus, Eaglebine, Utah CBM, East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, and Carthage. |