Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ANADARKO PETROLEUM CORP | apc20181q-8xk.htm |
Exhibit 99
NEWS
ANADARKO ANNOUNCES 2018 FIRST-QUARTER RESULTS
HOUSTON, May 1, 2018 – Anadarko Petroleum Corporation (NYSE: APC) today announced 2018 first‑quarter results, reporting net income attributable to common stockholders of $121 million, or $0.22 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items decreased net income by $158 million, or $0.30 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the first quarter of 2018 was $1.43 billion.
FIRST-QUARTER 2018 HIGHLIGHTS
• | Achieved record divestiture-adjusted oil production of 367,000 barrels per day |
• | Increased the company’s oil production mix to 57 percent, while generating its highest per-barrel margins since 2014, when oil prices averaged more than $93 per barrel for WTI |
• | Entered into accelerated share-repurchase agreements (ASRs) to complete the expanded $3.0 billion share-buyback program by the end of the second quarter, nine months from initial board authorization |
• | Secured substantial long-term oil transportation capacity from the Delaware Basin to both Gulf Coast and U.S. export markets, while also locking in firm sales out of the basin for about 80 percent of its operated natural gas production |
• | Received Mozambique government approval for the Golfinho/Atum Plan of Development for the company’s LNG project with Area 1 participants |
“The results we achieved over the second half of 2017 created strong momentum in the first quarter of 2018,” said Al Walker, Anadarko Chairman, President and CEO. “Exceptional performance from our asset-management teams in the Delaware and DJ basins and the Deepwater Gulf of Mexico drove record quarterly oil production, matching the company’s highest oil output to date. Additionally, we expect to complete our $3.0 billion share-repurchase program by mid-year and will consider expanding this program further should free cash flow from the current operating environment continue to increase.
“Looking ahead, our infrastructure buildout in West Texas is on track, with expectations of placing into service our first regional oil treating facility (ROTF) in Reeves County in the second quarter,” added Walker. “This is expected to be followed by an additional ROTF in north Loving County and the first cryogenic train at the Mentone gas processing plant in the third quarter. As we have commented previously, these are key drivers for significant oil growth later this year and next. As the operator for approximately 70 percent of our Delaware Basin leasehold, we have significant size, scale, control and flexibility to be
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an anchor tenant on several pipeline projects to ensure hydrocarbon-takeaway from the basin and improve wellhead margins. Although we are increasing our expected capital investments by about $100 million for the full year, this is primarily a result of higher-than-expected non-operated plans in the Delaware Basin from our leasehold partners and does not represent an increase in operated activity. This durable strategy of providing capital-efficient growth, while generating free cash flow to drive the return of capital through share repurchases, increased dividends and debt retirement will continue to be one of our principal objectives in the years to come.”
OPERATING HIGHLIGHTS
Anadarko’s first-quarter sales volumes of oil, natural gas and natural gas liquids (NGLs) totaled 58 million barrels of oil equivalent (BOE), or an average of 643,000 BOE per day, which was at the high end of the company’s first-quarter guidance.
In the Delaware Basin, the company’s oil sales volumes averaged 52,000 barrels per day for the quarter, representing a 70-percent increase over the first quarter of 2017. Importantly, Anadarko secured substantial long-term oil transportation capacity with commitments covering more than half of the company’s expected 2018 operated production and nearly all of its projected operated production by late 2019. The company will be an anchor shipper on Enterprise’s Midland pipeline to Houston and Plains’ Cactus II pipeline to Corpus Christi, and Anadarko is also covered by firm transport or firm sales with reliable counterparties controlling basin export capacity for approximately 80 percent of its operated natural gas production. In addition, construction on the Reeves ROTF is complete and commissioning activities are underway. Anadarko currently operates seven drilling rigs and five completion crews in the Delaware Basin.
In the DJ Basin of northeast Colorado, Anadarko continued to achieve record sales volumes, averaging more than 260,000 BOE per day, an 8-percent increase over the first quarter of 2017. The company currently operates four drilling rigs in the basin along with three completion crews that feature equipment with noise-reduction technology.
In the Deepwater Gulf of Mexico, Anadarko achieved record oil sales volumes of 128,000 barrels per day. Volume growth was driven by a new tieback at the Marlin facility and increased production at Horn Mountain, which is producing at its highest rate since 2006.
Sales volumes from Anadarko’s international operations in Algeria and Ghana averaged 88,000 barrels of liquids per day during the first quarter of 2018. In March, the Mozambique Government approved the Anadarko-operated Area 1 Golfinho/Atum Plan of Development defining the integrated onshore LNG project from the reservoir to the market. The Mozambique LNG project also made good progress on marketing with the announcement of a long-term LNG Sale and Purchase Agreement (SPA) for 1.2 million
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tonnes per annum for a period of 15 years with one of the world’s largest electric utilities, Électricité de France, S.A. (EDF). The near-term marketing objective has been met with non-binding key terms agreed with multiple buyers for more than 8.5 million tonnes per annum. Focus is now on converting these agreements to binding long-term SPAs.
OPERATIONS REPORT
For additional details on Anadarko’s first-quarter 2018 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL HIGHLIGHTS
During the first quarter, Anadarko’s capital investments, excluding Western Gas Partners, LP (WES), were $1.37 billion. The company also entered into two ASRs to complete its $3.0 billion share-repurchase program, which were funded by approximately $1.9 billion of cash on hand, with the final pricing and number of shares repurchased for the current outstanding ASR to be determined upon its completion in the second quarter. In the first quarter, Anadarko also announced a 400-percent increase to its quarterly dividend, increasing from 5 cents per share to 25 cents per share.
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host an investor conference call on Wednesday, May 2, 2018, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss its first-quarter 2018 financial and operating results. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 2709670. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast, 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 updated financial and production guidance, current hedge positions, and a reconciliation of “divestiture-adjusted” or “same-store” sales.
(1) See the accompanying table for details of certain items affecting comparability.
Anadarko Petroleum Corporation’s mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As of year-end 2017, the company had 1.44 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko’s ability to realize its expectations regarding performance; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to meet financial and operating guidance; to timely complete and commercially operate the projects, infrastructure and drilling prospects identified in this news release; to finalize the necessary steps to secure operatorship; to successfully complete the share repurchase program and to enter into additional programs; to increase the dividend; to reduce debt; and to successfully plan, secure additional government approvals, enter into long-term sales contracts, finance, build, and operate the necessary infrastructure and LNG park in Mozambique. See “Risk Factors” in the company’s 2017 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
# # #
Anadarko Contacts
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Kate Sloan, kate.sloan@anadarko.com, 832.636.2562
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
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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 March 31, 2018 | ||||||||||||
Before | After | Per Share | ||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
Net income (loss) attributable to common stockholders (GAAP) | $ | 121 | $ | 0.22 | ||||||||
Adjustments for certain items affecting comparability | ||||||||||||
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* | $ | 27 | 21 | 0.04 | ||||||||
Gains (losses) on divestitures, net | (24 | ) | (17 | ) | (0.03 | ) | ||||||
Impairments | ||||||||||||
Producing properties | (19 | ) | (15 | ) | (0.03 | ) | ||||||
Exploration assets | (53 | ) | (41 | ) | (0.08 | ) | ||||||
Contingency accruals | (132 | ) | (101 | ) | (0.19 | ) | ||||||
Change in uncertain tax positions | (5 | ) | (0.01 | ) | ||||||||
Certain items affecting comparability | $ | (201 | ) | (158 | ) | (0.30 | ) | |||||
Adjusted net income (loss) (Non-GAAP) | $ | 279 | $ | 0.52 | ||||||||
* | Includes $127 million related to interest-rate derivatives, $(94) million related to commodity derivatives, and $(6) million related to gathering, processing, and marketing sales. |
Quarter Ended March 31, 2017 | ||||||||||||
Before | After | Per Share | ||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
Net income (loss) attributable to common stockholders (GAAP) | $ | (318 | ) | $ | (0.58 | ) | ||||||
Adjustments for certain items affecting comparability | ||||||||||||
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* | $ | 155 | 99 | 0.18 | ||||||||
Gains (losses) on divestitures, net | 804 | 509 | 0.92 | |||||||||
Impairments | ||||||||||||
Producing and general properties | (373 | ) | (237 | ) | (0.43 | ) | ||||||
Exploration assets | (532 | ) | (338 | ) | (0.61 | ) | ||||||
Change in uncertain tax positions | (21 | ) | (0.04 | ) | ||||||||
Certain items affecting comparability | $ | 54 | 12 | 0.02 | ||||||||
Adjusted net income (loss) (Non-GAAP) | $ | (330 | ) | $ | (0.60 | ) | ||||||
* | Includes $12 million related to interest-rate derivatives, $141 million related to commodity derivatives, and $2 million related to gathering, processing, and marketing sales. |
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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 March 31, | |||||||
millions | 2018 | 2017 | |||||
Net income (loss) attributable to common stockholders (GAAP) | $ | 121 | $ | (318 | ) | ||
Interest expense | 228 | 223 | |||||
Income tax expense (benefit) | 126 | 97 | |||||
DD&A | 990 | 1,115 | |||||
Exploration expense | 168 | 1,084 | |||||
(Gains) losses on divestitures, net | 24 | (804 | ) | ||||
Impairments | 19 | 373 | |||||
Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives | (27 | ) | (155 | ) | |||
Restructuring charges | — | (1 | ) | ||||
Consolidated Adjusted EBITDAX (Margin) (Non-GAAP) | $ | 1,649 | $ | 1,614 | |||
Total barrels of oil equivalent (BOE) | 58 | 72 | |||||
Consolidated Adjusted EBITDAX (Margin) per BOE | $ | 28.43 | $ | 22.42 | |||
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.
March 31, 2018 | |||||||||||||
Anadarko | |||||||||||||
Anadarko | WGP* | excluding | |||||||||||
millions | Consolidated | Consolidated | WGP | ||||||||||
Total debt (GAAP) | $ | 16,404 | $ | 4,204 | $ | 12,200 | |||||||
Less cash and cash equivalents | 3,361 | 524 | 2,837 | ||||||||||
Net debt (Non-GAAP) | $ | 13,043 | $ | 3,680 | $ | 9,363 | |||||||
Anadarko | |||||||||||||
Anadarko | excluding | ||||||||||||
millions | Consolidated | WGP | |||||||||||
Net debt | $ | 13,043 | $ | 9,363 | |||||||||
Total equity | 11,756 | 8,741 | |||||||||||
Adjusted capitalization | $ | 24,799 | $ | 18,104 | |||||||||
Net debt to adjusted capitalization ratio | 53 | % | 52 | % | |||||
* | 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 | |||||||
March 31, | |||||||
millions | 2018 | 2017 | |||||
Cash Flows from Operating Activities | |||||||
Net income (loss) | $ | 174 | $ | (275 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||
Depreciation, depletion, and amortization | 990 | 1,115 | |||||
Deferred income taxes | 42 | (660 | ) | ||||
Dry hole expense and impairments of unproved properties | 106 | 1,012 | |||||
Impairments | 19 | 373 | |||||
(Gains) losses on divestitures, net | 24 | (804 | ) | ||||
Total (gains) losses on derivatives, net | 36 | (147 | ) | ||||
Operating portion of net cash received (paid) in settlement of derivative instruments | (63 | ) | (8 | ) | |||
Other | 74 | 83 | |||||
Changes in assets and liabilities | 28 | 434 | |||||
Net Cash Provided by (Used in) Operating Activities | $ | 1,430 | $ | 1,123 | |||
Net Cash Provided by (Used in) Investing Activities | $ | (1,113 | ) | $ | 1,723 | ||
Net Cash Provided by (Used in) Financing Activities | $ | (1,507 | ) | $ | (198 | ) | |
Capital Expenditures | |||||||
Exploration and Production and other | $ | 1,115 | $ | 945 | |||
WES Midstream | 327 | 286 | |||||
Other Midstream* | 262 | 24 | |||||
Total | $ | 1,704 | $ | 1,255 | |||
* | Excludes WES. |
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Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended | |||||||
Summary Financial Information | March 31, | ||||||
millions except per-share amounts | 2018 | 2017 | |||||
Consolidated Statements of Income | |||||||
Revenues and Other | |||||||
Oil sales | $ | 2,127 | $ | 1,663 | |||
Natural-gas sales | 247 | 502 | |||||
Natural-gas liquids sales | 292 | 289 | |||||
Gathering, processing, and marketing sales | 360 | 444 | |||||
Gains (losses) on divestitures and other, net | 19 | 869 | |||||
Total | 3,045 | 3,767 | |||||
Costs and Expenses | |||||||
Oil and gas operating | 276 | 256 | |||||
Oil and gas transportation | 196 | 249 | |||||
Exploration | 168 | 1,084 | |||||
Gathering, processing, and marketing | 237 | 350 | |||||
General and administrative | 278 | 263 | |||||
Depreciation, depletion, and amortization | 990 | 1,115 | |||||
Production, property, and other taxes | 190 | 155 | |||||
Impairments | 19 | 373 | |||||
Other operating expense | 140 | 22 | |||||
Total | 2,494 | 3,867 | |||||
Operating Income (Loss) | 551 | (100 | ) | ||||
Other (Income) Expense | |||||||
Interest expense | 228 | 223 | |||||
(Gains) losses on derivatives, net | 35 | (147 | ) | ||||
Other (income) expense, net | (12 | ) | 2 | ||||
Total | 251 | 78 | |||||
Income (Loss) Before Income Taxes | 300 | (178 | ) | ||||
Income tax expense (benefit) | 126 | 97 | |||||
Net Income (Loss) | 174 | (275 | ) | ||||
Net income (loss) attributable to noncontrolling interests | 53 | 43 | |||||
Net Income (Loss) Attributable to Common Stockholders | $ | 121 | $ | (318 | ) | ||
Per Common Share | |||||||
Net income (loss) attributable to common stockholders—basic | $ | 0.23 | $ | (0.58 | ) | ||
Net income (loss) attributable to common stockholders—diluted | $ | 0.22 | $ | (0.58 | ) | ||
Average Number of Common Shares Outstanding—Basic | 518 | 551 | |||||
Average Number of Common Shares Outstanding—Diluted | 519 | 551 | |||||
Exploration Expense | |||||||
Dry hole expense | $ | 53 | $ | 476 | |||
Impairments of unproved properties | 53 | 537 | |||||
Geological and geophysical, exploration overhead, and other expense | 62 | 71 | |||||
Total | $ | 168 | $ | 1,084 | |||
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Anadarko Petroleum Corporation
(Unaudited)
March 31, | December 31, | ||||||||||
millions | 2018 | 2017 | |||||||||
Condensed Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 3,361 | $ | 4,553 | |||||||
Accounts receivable, net of allowance | 1,795 | 1,829 | |||||||||
Other current assets | 374 | 380 | |||||||||
Net properties and equipment | 27,758 | 27,451 | |||||||||
Other assets | 2,134 | 2,211 | |||||||||
Goodwill and other intangible assets | 5,654 | 5,662 | |||||||||
Total Assets | $ | 41,076 | $ | 42,086 | |||||||
Short-term debt - Anadarko* | 733 | 142 | |||||||||
Short-term debt - WGP/WES | 28 | — | |||||||||
Other current liabilities | 3,973 | 3,764 | |||||||||
Long-term debt - Anadarko* | 11,467 | 12,054 | |||||||||
Long-term debt - WGP/WES | 4,176 | 3,493 | |||||||||
Deferred income taxes | 2,267 | 2,234 | |||||||||
Asset retirement obligations | 2,510 | 2,500 | |||||||||
Other long-term liabilities | 4,166 | 4,109 | |||||||||
Common stock | 57 | 57 | |||||||||
Paid-in capital | 11,701 | 12,000 | |||||||||
Retained earnings | 1,152 | 1,109 | |||||||||
Treasury stock | (3,759 | ) | (2,132 | ) | |||||||
Accumulated other comprehensive income (loss) | (410 | ) | (338 | ) | |||||||
Total stockholders’ equity | 8,741 | 10,696 | |||||||||
Noncontrolling interests | 3,015 | 3,094 | |||||||||
Total Equity | 11,756 | 13,790 | |||||||||
Total Liabilities and Equity | $ | 41,076 | $ | 42,086 | |||||||
Capitalization | |||||||||||
Total debt | $ | 16,404 | $ | 15,689 | |||||||
Total equity | 11,756 | 13,790 | |||||||||
Total | $ | 28,160 | $ | 29,479 | |||||||
Capitalization Ratios | |||||||||
Total debt | 58 | % | 53 | % | |||||
Total equity | 42 | % | 47 | % | |||||
* | Excludes WES and WGP |
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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 March 31, 2018 | |||||||||||||||||||||||||||||
United States | 288 | 1,051 | 92 | 25 | 95 | 9 | $ | 62.58 | $ | 2.61 | $ | 33.24 | |||||||||||||||||
Algeria | 55 | — | 5 | 5 | — | — | 67.24 | — | 40.76 | ||||||||||||||||||||
Other International | 28 | — | — | 3 | — | — | 67.68 | — | — | ||||||||||||||||||||
Total | 371 | 1,051 | 97 | 33 | 95 | 9 | $ | 63.66 | $ | 2.61 | $ | 33.63 | |||||||||||||||||
Quarter Ended March 31, 2017 | |||||||||||||||||||||||||||||
United States | 269 | 1,859 | 112 | 24 | 167 | 10 | $ | 49.23 | $ | 3.00 | $ | 26.57 | |||||||||||||||||
Algeria | 70 | — | 6 | 6 | — | 1 | 53.20 | — | 37.57 | ||||||||||||||||||||
Other International | 28 | — | — | 3 | — | — | 53.77 | — | — | ||||||||||||||||||||
Total | 367 | 1,859 | 118 | 33 | 167 | 11 | $ | 50.34 | $ | 3.00 | $ | 27.17 | |||||||||||||||||
Average Daily Sales Volumes MBOE/d | Sales Volumes MMBOE | ||||||||||||||||||||||||||||
Quarter Ended March 31, 2018 | 643 | 58 | |||||||||||||||||||||||||||
Quarter Ended March 31, 2017 | 795 | 72 | |||||||||||||||||||||||||||
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 March 31, 2018 | ||||||||||||||||||||||||
United States | $ | 1,623 | $ | 247 | $ | 274 | $ | (67 | ) | $ | (1 | ) | $ | — | ||||||||||
Algeria | 331 | — | 18 | — | — | — | ||||||||||||||||||
Other International | 173 | — | — | — | — | — | ||||||||||||||||||
Total | $ | 2,127 | $ | 247 | $ | 292 | $ | (67 | ) | $ | (1 | ) | $ | — | ||||||||||
Quarter Ended March 31, 2017 | ||||||||||||||||||||||||
United States | $ | 1,191 | $ | 502 | $ | 267 | $ | 1 | $ | (4 | ) | $ | (3 | ) | ||||||||||
Algeria | 334 | — | 22 | — | — | — | ||||||||||||||||||
Other International | 138 | — | — | — | — | — | ||||||||||||||||||
Total | $ | 1,663 | $ | 502 | $ | 289 | $ | 1 | $ | (4 | ) | $ | (3 | ) | ||||||||||
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Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of May 1, 2018 | ||||||||||||||
Note: Guidance excludes sales volumes for Alaska due to divestiture. | ||||||||||||||
2nd-Qtr | Full-Year | |||||||||||||
Guidance (see Note) | Guidance (see Note) | |||||||||||||
Units | Units | |||||||||||||
Total Sales Volumes (MMBOE) | 56 | — | 58 | 240 | — | 250 | ||||||||
Total Sales Volumes (MBOE/d) | 615 | — | 640 | 658 | — | 685 | ||||||||
Oil (MBbl/d) | 346 | — | 362 | 376 | — | 396 | ||||||||
United States | 270 | — | 280 | 288 | — | 305 | ||||||||
Algeria | 50 | — | 54 | 59 | — | 61 | ||||||||
Ghana | 26 | — | 28 | 29 | — | 30 | ||||||||
Natural Gas (MMcf/d) | ||||||||||||||
United States | 1,025 | — | 1,075 | 1,085 | — | 1,125 | ||||||||
Natural Gas Liquids (MBbl/d) | ||||||||||||||
United States | 93 | — | 98 | 94 | — | 97 | ||||||||
Algeria | 5 | — | 6 | 5 | — | 6 | ||||||||
$ / Unit | $ / Unit | |||||||||||||
Price Differentials vs NYMEX (w/o hedges) | ||||||||||||||
Oil ($/Bbl) | (0.80 | ) | — | 3.20 | (1.90 | ) | — | 2.00 | ||||||
United States | (2.00 | ) | — | 2.00 | (3.00 | ) | — | 1.00 | ||||||
Algeria | 3.00 | — | 7.00 | 2.00 | — | 7.00 | ||||||||
Ghana | 3.00 | — | 7.00 | 2.00 | — | 7.00 | ||||||||
Natural Gas ($/Mcf) | ||||||||||||||
United States | (0.90 | ) | — | (0.60 | ) | (0.70 | ) | — | (0.40 | ) | ||||
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Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of May 1, 2018 | ||||||||||||||
Note: Guidance excludes items affecting comparability. | ||||||||||||||
2nd-Qtr | Full-Year | |||||||||||||
Guidance (see Note) | Guidance (see Note) | |||||||||||||
$ MM | $ MM | |||||||||||||
Other Revenues | ||||||||||||||
Marketing and Gathering Margin | 130 | — | 155 | 700 | — | 780 | ||||||||
Minerals and Other | 35 | — | 55 | 190 | — | 230 | ||||||||
$ / BOE | $ / BOE | |||||||||||||
Costs and Expenses | ||||||||||||||
Oil & Gas Direct Operating | 4.75 | — | 4.95 | 4.25 | — | 4.75 | ||||||||
Oil & Gas Transportation and Other | 3.55 | — | 3.75 | 3.50 | — | 3.75 | ||||||||
Depreciation, Depletion, and Amortization | 17.00 | — | 17.75 | 17.00 | — | 17.75 | ||||||||
Production Taxes (% of Product Revenue) | 6.5 | % | — | 7.5 | % | 6.5 | % | — | 7.5 | % | ||||
$ MM | $ MM | |||||||||||||
General and Administrative | 265 | — | 285 | 1,025 | — | 1,075 | ||||||||
Other Operating Expense | 5 | — | 15 | 40 | — | 50 | ||||||||
Exploration Expense | ||||||||||||||
Non-Cash | — | — | 20 | 75 | — | 100 | ||||||||
Cash | 50 | — | 60 | 200 | — | 220 | ||||||||
Interest Expense (net) | 230 | — | 240 | 925 | — | 975 | ||||||||
Other (Income) Expense | (5 | ) | — | 5 | (20 | ) | — | 20 | ||||||
Taxes | ||||||||||||||
Algeria (100% Current) | 60 | % | — | 70 | % | 60 | % | — | 70 | % | ||||
Rest of Company (60% Current/40% Deferred for Q2 and 30% Current/70% Deferred for Total Year) | 20 | % | — | 30 | % | 15 | % | — | 25 | % | ||||
Noncontrolling Interest | 55 | — | 75 | 300 | — | 350 | ||||||||
Avg. Shares Outstanding (MM) | ||||||||||||||
Basic | 499 | — | 503 | 503 | — | 507 | ||||||||
Diluted | 499 | — | 503 | 503 | — | 507 | ||||||||
Capital Investment (Excluding Western Gas Partners, LP) | $ MM | $ MM | ||||||||||||
APC Capital Expenditures | 1,300 | — | 1,500 | 4,200 | — | 4,600 | ||||||||
13
Anadarko Petroleum Corporation | |||||||||
Commodity Hedge Positions | |||||||||
As of May 1, 2018 | |||||||||
Weighted Average Price per barrel | |||||||||
Volume (MBbls/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||
Oil | |||||||||
Two-Way Collars | |||||||||
2018 | |||||||||
WTI | 108 | $ | 50.00 | $ | 60.48 | ||||
Fixed Price - Financial | |||||||||
2018 | |||||||||
Brent | 84 | $ | 61.45 | ||||||
Three-Way Collars | |||||||||
2019 | |||||||||
WTI | 57 | $ | 45.00 | $ | 55.00 | $ | 70.22 | ||
Brent | 30 | $ | 50.00 | $ | 60.00 | $ | 78.22 | ||
87 | |||||||||
Volume | Weighted Average Price per MMBtu | ||||||||
(thousand | |||||||||
MMBtu/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||
Natural Gas | |||||||||
Three-Way Collars | |||||||||
2018 | 250 | $ | 2.00 | $ | 2.75 | $ | 3.54 | ||
Fixed Price - Financial | |||||||||
2018 | 280 | $ | 3.02 | ||||||
Interest-Rate Derivatives | |||||
As of May 1, 2018 | |||||
Instrument | Notional Amt. | Reference Period | Mandatory Termination Date | Rate Paid | Rate Received |
Swap | $550 Million | Sept. 2016 – 2046 | Sept. 2020 | 6.418% | 3M LIBOR |
Swap | $250 Million | Sept. 2016 – 2046 | Sept. 2022 | 6.809% | 3M LIBOR |
Swap | $200 Million | Sept. 2017 – 2047 | Sept. 2018 | 6.049% | 3M LIBOR |
Swap | $100 Million | Sept. 2017 – 2047 | Sept. 2020 | 6.891% | 3M LIBOR |
Swap | $250 Million | Sept. 2017 – 2047 | Sept. 2021 | 6.570% | 3M LIBOR |
Swap | $250 Million | Sept. 2017 – 2047 | Sept. 2023 | 6.761% | 3M LIBOR |
14
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes | |||||||||||||||||||||||
Quarter Ended March 31, 2018 | Quarter Ended March 31, 2017 | ||||||||||||||||||||||
Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | Oil MBbls/d | Natural Gas MMcf/d | NGLs MBbls/d | Total MBOE/d | ||||||||||||||||
U.S. Onshore | 156 | 967 | 83 | 400 | 115 | 1,058 | 85 | 376 | |||||||||||||||
Gulf of Mexico | 128 | 84 | 9 | 151 | 125 | 129 | 12 | 159 | |||||||||||||||
International | 83 | — | 5 | 88 | 98 | — | 6 | 104 | |||||||||||||||
Same-Store Sales | 367 | 1,051 | 97 | 639 | 338 | 1,187 | 103 | 639 | |||||||||||||||
Divestitures* | 4 | — | — | 4 | 29 | 672 | 15 | 156 | |||||||||||||||
Total | 371 | 1,051 | 97 | 643 | 367 | 1,859 | 118 | 795 | |||||||||||||||
* | Includes Alaska, Eagleford, Marcellus, Eaglebine, Utah CBM, and Moxa. |