Anadarko Announces 2017 Fourth-Quarter And Full-Year Results
HOUSTON, Feb. 6, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2017 fourth?quarter results, reporting net income attributable to common stockholders of $976 million, or $1.80 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by $870 million, or $1.62 per share (diluted), on an after-tax basis.((1) )Net cash provided by operating activities in the fourth quarter of 2017 was $1.4 billion.
For the year ended Dec. 31, 2017, Anadarko reported a net loss attributable to common stockholders of $456 million, or $0.85 per share (diluted). Full-year 2017 net cash provided by operating activities totaled $4.0 billion.
2017 HIGHLIGHTS
-- Further improved oil sales-volume product mix to 53 percent, with
liquids increasing to 67 percent, contributing to a 67-percent
improvement in margins per barrel((2))
-- Achieved production exit rates totaling more than 150,000 barrels of oil
per day (BOPD) combined from the Delaware and DJ basins
-- Closed more than $4.0 billion of asset divestitures
-- Announced $2.5 billion share repurchase program and, by year end,
repurchased 21.9 million shares for approximately $1.1 billion (average
price of $48.33 per share)
-- Achieved completion of the Legal and Contractual Framework and commenced
resettlement for the Mozambique LNG project
"Given the significant volatility the energy sector faced in 2017, we continued to focus on capital efficiency throughout the year by investing upstream capital within discretionary cash flow, while materially improving margins per barrel - an approach that produced very encouraging results as we concluded the year," said Al Walker, Anadarko Chairman, President and CEO. "These operational efficiencies, an improving market environment, and strong momentum provide an exciting backdrop to 2018. Our capital-investment program this year is well positioned to deliver attractive cash returns that produce healthy production growth. As we have stated previously, we will complement this capital-efficient investment plan with additional share buybacks, increases to our dividend yield, and improvements to our credit metrics, as market conditions permit, rather than materially increasing our capital expenditures to pursue greater production volume."
SALES VOLUMES AND PROVED RESERVES
Anadarko's full-year sales volumes of oil, natural gas and natural gas liquids (NGLs) totaled 245 million barrels of oil equivalent (BOE), or an average of 672,000 BOE per day. Fourth-quarter 2017 sales volumes of oil, natural gas and NGLs averaged approximately 637,000 BOE per day.
In 2017, Anadarko organically added 244 million BOE of proved reserves before the effects of price revisions. Anadarko's costs incurred were $4.1 billion. The company's oil and natural gas exploration and development costs were $4.2 billion.((2)) The company estimates its proved reserves at year-end 2017 totaled 1.44 billion BOE, with 78 percent of its reserves categorized as proved developed. At year-end 2017, Anadarko's proved reserves were comprised of 63 percent liquids and 37 percent natural gas.
OPERATING HIGHLIGHTS
By year-end 2017, oil sales volumes in the Delaware Basin of West Texas surpassed 50,000 BOPD, representing a 69-percent increase over the fourth quarter of 2016. The company also made significant progress toward full development mode as it successfully concluded its drilling program to capture 70?percent operatorship across its 240,000-net-acre position.
In the DJ Basin of northeast Colorado, Anadarko achieved record sales volumes of more than 254,000 BOE per day. Oil sales volumes surpassed 100,000 BOPD in December, driving an increase of almost 20 percent over the previous quarter. In addition, the company's new completion design implemented in 2017 increased its estimated ultimate recovery (EUR) to 690,000 BOE per well in the contiguous core, representing an increase of more than 20-percent over the previous type curve.
Gulf of Mexico sales volumes averaged 143,000 BOE per day in the fourth quarter, representing a 35-percent increase over the fourth quarter of 2016. Oil sales volumes for the quarter averaged 120,000 BOPD, a 48-percent increase over the fourth quarter of 2016, while also reflecting the impact of Hurricane Nate and the prolonged shutdown at the third-party-operated Enchilada platform.
Anadarko's international and frontier operations averaged 94,000 barrels per day during the fourth quarter of 2017, representing an 18-percent decrease relative to the fourth quarter of 2016, which was largely driven by statutory maintenance on the El Merk facility in Algeria and the timing and size of tanker liftings. Additionally, during the fourth quarter, the company made meaningful progress with its Mozambique LNG project by beginning the resettlement process to prepare the onshore location for the future LNG park.
OPERATIONS REPORT
For additional details on Anadarko's fourth-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL HIGHLIGHTS
During the year, Anadarko generated $4.0 billion of net cash provided by operating activities while investing $3.8 billion on upstream exploration and development activities.((3) )The company ended 2017 with $4.6 billion of cash on hand and closed asset divestitures totaling more than $4.0 billion during the year. Subsequent to year end, Anadarko divested its non-operated interest in its Alaska assets for approximately $400 million. The transaction is subject to regulatory approval.
During the fourth quarter, approximately $1.1 billion of the company's previously announced $2.5 billion share-repurchase program was executed under an accelerated share repurchase (ASR) agreement and through open-market purchases. In February 2018, Anadarko completed a repurchase of 8.5 million shares for $500 million (average price of $58.82 per share) under an additional ASR agreement. To date, the company has completed $1.6 billion of repurchases under the program, totaling 30.4 million shares at an average price of $51.27 per share.
Subsequent to year end, the company amended both its $3.0 billion, five-year credit facility to extend the maturity date to January 2022 and its $2.0 billion, 364-day credit facility to extend the maturity date to January 2019.
2018 CAPITAL PROGRAM AND SALES-VOLUME GUIDANCE
Anadarko's 2018 guidance has been adjusted from its November 2017 news release for the divestiture of its Alaska assets and anticipated production impacts related to non-operated downtime in the Gulf of Mexico. The company expects full-year capital investments in the range of $4.1 to $4.5 billion, not including capital investments made by Western Gas Partners, LP (NYSE: WES).
2018 Capital(a) 2018 Total 2018 Oil
($ Million) Sales Volume(b) Sales Volume(b)
(Million BOE) (Thousand BOPD)
------------ --------------
November 2017 Guidance $4,200 - $4,600 245 - 255 385 - 405
Adjustment (100) (7)(c) (16)(d)
New Guidance $4,100 - $4,500 238 - 248 370 - 390
Note: All amounts are approximate.
(a) Does not include WES capital
investments.
(b) See the accompanying table for a
reconciliation of divestiture-
adjusted sales volume.
(c) Includes Alaska divestiture (4
million BOE) and GOM, primarily
driven by non-operated downtime.
(d) Includes Alaska divestiture (11
thousand BOPD) and GOM, primarily
driven by non-operated downtime.
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host an investor conference call on Wednesday, Feb. 7, 2018, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2017 results as well as details of the company's 2018 capital program and expectations. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 4262361. 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
Twelve pages of summary financial data follow, including costs incurred, proved reserves, 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) Does not include Anadarko midstream
capital investments or capital
investments made by Western Gas
Partners, LP (NYSE: WES).
Logo - http://photos.prnewswire.com/prnh/20141103/156201LOGO
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 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 finalize year-end reserves; 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 and drilling prospects identified in this news release; to consummate the transaction described 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 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
Kate Sloan, kate.sloan@anadarko.com, 832.636.2562
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
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 December 31, 2017
Before After Per Share
millions except per-
share amounts Tax Tax (diluted)
-------------------- --- --- --------
Net income (loss)
attributable to
common stockholders
(GAAP) $976 $1.80
Adjustments for
certain items
affecting
comparability
Total gains (losses)
on derivatives, net,
less net cash from
settlement of
commodity
derivatives* $(168) (105) (0.20)
Gains (losses) on
divestitures, net (141) (83) (0.15)
Impairments
Producing properties (25) (16) (0.03)
Exploration assets (24) (15) (0.03)
Early termination of
rig (39) (25) (0.05)
Change in uncertain
tax positions (56) (0.10)
Impact of tax reform
legislation 1,170 2.18
Certain items
affecting
comparability $(397) 870 1.62
-------------- ----- --- ----
Adjusted net income
(loss) (Non-GAAP) $106 $0.18
------------------- ---- -----
* Includes $(171) million related to
commodity derivatives, $(1)
million related to interest-rate
derivatives, and $4 million
related to gathering, processing,
and marketing sales.
Quarter Ended December 31, 2016
Before After Per Share
millions except per-
share amounts Tax Tax (diluted)
-------------------- --- --- --------
Net income (loss)
attributable to common
stockholders (GAAP) $(515) $(0.94)
Adjustments for certain
items affecting
comparability
Total gains (losses) on
derivatives, net, less
net cash from
settlement of commodity
derivatives* $304 193 0.35
Gains (losses) on
divestitures, net (241) (155) (0.28)
Impairments
Producing and general
properties (166) (101) (0.18)
Exploration assets (149) (115) (0.21)
Restructuring charges (26) (16) (0.03)
Early termination of rig (49) (32) (0.06)
Loss on early
extinguishment of debt (31) (20) (0.04)
Environmental reserves 21 13 0.03
Change in uncertain tax
positions (10) (0.02)
Certain items affecting
comparability $(337) (243) (0.44)
----------------------- ----- ---- -----
Adjusted net income
(loss) (Non-GAAP) $(272) $(0.50)
------------------- ----- ------
* Includes $(179) million related
to commodity derivatives and
$483 million related to
interest-rate derivatives.
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.
Years Ended
December 31,
millions 2017 2016
-------- ---- ----
Net income (loss)
attributable to common
stockholders (GAAP) $(456) $(3,071)
Interest expense 932 890
Income tax expense
(benefit) (1,477) (1,021)
DD&A 4,279 4,301
Exploration expense 2,541 946
(Gains) losses on
divestitures, net (674) 757
Impairments 408 227
Total (gains) losses on
derivatives, net, less
net cash from settlement
of commodity derivatives 156 559
Restructuring charges 21 389
Other operating expense - 1
Loss on early
extinguishment of debt 2 155
Certain other
nonoperating items - (58)
------------------- --- ---
Consolidated Adjusted
EBITDAX (Margin) (Non-
GAAP) $5,732 $4,075
----------------------- ------ ------
Total barrels of oil
equivalent (BOE) 245 290
-------------------- --- ---
Consolidated Adjusted
EBITDAX (Margin) per BOE $23.40 $14.05
------------------------- ------ ------
Management believes oil and natural gas exploration and development costs is a more accurate reflection of the expenditures incurred during the current year excluding certain obligations to be paid in future periods.
millions Year Ended
December 31,
2017
--- ----
Costs incurred (GAAP)* $4,093
Asset retirement obligation
liabilities incurred (5)
Cash expenditures for asset
retirement obligations 131
--------------------------- ---
Oil and natural gas exploration and
development costs (Non-GAAP) $4,219
----------------------------------- ------
* Includes $499 million of
unproved property acquisitions.
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.
December 31, 2017
Anadarko
Anadarko WGP* excluding
millions Consolidated Consolidated WGP
-------- ------------ ------------ ---
Total debt (GAAP) $15,689 $3,493 $12,196
Less cash and cash equivalents 4,553 80 4,473
------------------------------ ----- --- -----
Net debt (Non-GAAP) $11,136 $3,413 $7,723
------------------ ------- ------ ------
Anadarko
Anadarko excluding
millions Consolidated WGP
-------- ------------ ---
Net debt $11,136 $7,723
Total equity 13,790 10,696
------------ ------ ------
Adjusted capitalization $24,926 $18,419
----------------------- ------- -------
Net debt to adjusted capitalization ratio 45% 42%
----------------------------------------- --- ---
* 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.
Anadarko Petroleum Corporation
Cash Flow Information
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
millions 2017 2016 2017 2016
-------- ---- ---- ---- ----
Cash Flows from Operating Activities
------------------------------------
Net income (loss) $1,039 $(452) $(211) $(2,808)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities
Depreciation, depletion,
and amortization 1,044 1,099 4,279 4,301
Deferred income taxes (1,143) (117) (2,169) (1,238)
Dry hole expense and
impairments of unproved
properties 77 313 2,221 613
Impairments 25 166 408 227
(Gains) losses on
divestitures, net 141 241 (674) 757
Loss on early
extinguishment of debt - 31 2 155
Total (gains) losses on
derivatives, net 164 (342) 131 292
Operating portion of net
cash received (paid) in
settlement of
derivative instruments 4 38 25 267
Other 78 86 303 342
Changes in assets and
liabilities (39) 60 (306) 92
--------------------- --- --- ---- ---
Net Cash Provided by
(Used in) Operating
Activities* $1,390 $1,123 $4,009 $3,000
-------------------- ------ ------ ------ ------
Net Cash Provided by
(Used in) Investing
Activities $(1,002) $(1,506) $(1,028) $(2,762)
-------------------- ------- ------- ------- -------
Net Cash Provided by
(Used in) Financing
Activities $(1,086) $(413) $(1,613) $2,008
-------------------- ------- ----- ------- ------
Capital Expenditures
--------------------
Exploration and
Production and other $1,009 $843 $3,886 $2,764
Midstream - Anadarko** 200 15 458 59
Midstream - WES 295 135 956 491
Total $1,504 $993 $5,300 $3,314
----- ------ ---- ------ ------
* Restructuring charges (excluding noncash share-
based compensation) were $1 million for the
quarter ended December 31, 2017, $23 million
for the quarter ended December 31, 2016, $21
million for the year ended December 31, 2017,
and $357 million for the year ended December
31, 2016. Cash payments for restructuring
charges were $1 million for the quarter ended
December 31, 2017, $30 million for the quarter
ended December 31, 2016, $53 million for the
year ended December 31, 2017, and $247 million
for the year ended December 31, 2016.
** Excludes WES.
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Year ended
Summary Financial
Information December 31, December 31,
millions except per-
share amounts 2017 2016 2017 2016
-------------------- ---- ---- ---- ----
Consolidated Statements of Income
---------------------------------
Revenues and Other
------------------
Oil sales $1,900 $1,454 $6,552 $4,668
Natural-gas sales 258 443 1,348 1,564
Natural-gas liquids
sales 301 281 1,069 921
Gathering, processing,
and marketing sales 583 399 2,000 1,294
Gains (losses) on
divestitures and
other, net (113) (190) 939 (578)
----------------- ---- ---- --- ----
Total 2,929 2,387 11,908 7,869
----- ----- ----- ------ -----
Costs and Expenses
------------------
Oil and gas operating 252 203 1,000 811
Oil and gas
transportation 216 258 914 1,002
Exploration 170 440 2,541 946
Gathering, processing,
and marketing 452 329 1,560 1,087
General and
administrative 235 324 1,075 1,440
Depreciation,
depletion, and
amortization 1,044 1,099 4,279 4,301
Production, property,
and other taxes 133 114 582 536
Impairments 25 166 408 227
Other operating expense 64 64 221 118
----------------------- --- --- --- ---
Total 2,591 2,997 12,580 10,468
----- ----- ----- ------ ------
Operating Income (Loss) 338 (610) (672) (2,599)
---------------------- --- ---- ---- ------
Other (Income) Expense
----------------------
Interest expense 252 233 932 890
Loss on early
extinguishment of debt - 31 2 155
(Gains) losses on
derivatives, net 168 (343) 135 286
Other (income) expense,
net (10) (15) (53) (101)
----------------------- --- --- --- ----
Total 410 (94) 1,016 1,230
----- --- --- ----- -----
Income (Loss) Before
Income Taxes (72) (516) (1,688) (3,829)
-------------------- --- ---- ------ ------
Income tax expense
(benefit) (1,111) (64) (1,477) (1,021)
------------------ ------ --- ------ ------
Net Income (Loss) 1,039 (452) (211) (2,808)
---------------- ----- ---- ---- ------
Net income (loss)
attributable to
noncontrolling
interests 63 63 245 263
----------------- --- --- --- ---
Net Income (Loss)
Attributable to Common
Stockholders $976 $(515) $(456) $(3,071)
----------------------- ---- ----- ----- -------
Per Common Share
----------------
Net income (loss)
attributable to common
stockholders-basic $1.80 $(0.94) $(0.85) $(5.90)
Net income (loss)
attributable to common
stockholders-diluted $1.80 $(0.94) $(0.85) $(5.90)
----------------------- ----- ------ ------ ------
Average Number of
Common Shares
Outstanding-Basic 537 551 548 522
------------------ --- --- --- ---
Average Number of
Common Shares
Outstanding-Diluted 537 551 548 522
-------------------- --- --- --- ---
Exploration Expense
-------------------
Dry hole expense $25 $188 $1,433 $397
Impairments of unproved
properties 52 125 788 216
Geological and
geophysical,
exploration overhead,
and other expense 93 127 320 333
---------------------- --- --- --- ---
Total $170 $440 $2,541 $946
----- ---- ---- ------ ----
Anadarko Petroleum Corporation
(Unaudited)
December 31, December 31,
millions 2017 2016
-------- ---- ----
Condensed Balance Sheets
------------------------
Cash and
cash
equivalents $4,553 $3,184
Accounts
receivable,
net of
allowance 1,829 1,728
Other
current
assets 380 354
Net
properties
and
equipment 27,451 32,168
Other
assets 2,211 2,226
Goodwill
and
other
intangible
assets 5,662 5,904
----- -----
Total
Assets $42,086 $45,564
------- ------- -------
Short-
term
debt -
Anadarko* 142 42
Other
current
liabilities 3,764 3,286
Long-
term
debt -
Anadarko* 12,054 12,162
Long-
term
debt -
WES and
WGP 3,493 3,119
Deferred
income
taxes 2,234 4,324
Asset
retirement
obligations 2,500 2,802
Other
long-
term
liabilities 4,109 4,332
Common
stock 57 57
Paid-in
capital 12,000 11,875
Retained
earnings 1,109 1,704
Treasury
stock (2,132) (1,033)
Accumulated
other
comprehensive
income
(loss) (338) (391)
Total
stockholders'
equity 10,696 12,212
-------------- ------ ------
Noncontrolling
interests 3,094 3,285
-------------- ----- -----
Total
Equity 13,790 15,497
------- ------ ------
Total
Liabilities
and
Equity $42,086 $45,564
------------ ------- -------
Capitalization
--------------
Total
debt $15,689 $15,323
Total
equity 13,790 15,497
------- ------ ------
Total $29,479 $30,820
----- ------- -------
Capitalization Ratios
---------------------
Total
debt 53% 50%
Total
equity 47% 50%
------- --- ---
* Excludes WES and WGP
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 December 31, 2017
United States 287 1,064 90 26 98 7 $54.97 $2.63 $34.99
Algeria 54 - 3 4 - 1 61.35 - 45.29
Other International 26 - - 3 - - 60.75 - -
--- --- --- --- --- --- ----- --- ---
Total 367 1,064 93 33 98 8 $56.32 $2.63 $35.28
--- ----- --- --- --- --- ------ ----- ------
Quarter Ended December 31, 2016
United States 240 1,881 116 22 173 10 $46.31 $2.56 $24.24
Algeria 68 - 8 6 - 1 49.39 - 30.10
Other International 28 - - 3 - - 47.18 - -
--- --- --- --- --- --- ----- --- ---
Total 336 1,881 124 31 173 11 $47.01 $2.56 $24.62
--- ----- --- --- --- --- ------ ----- ------
Year Ended December 31, 2017
United States 266 1,309 95 97 478 34 $49.62 $2.82 $29.24
Algeria 61 - 4 22 - 2 53.74 - 35.64
Other International 28 - - 10 - - 53.84 - -
--- --- --- --- --- --- ----- --- ---
Total 355 1,309 99 129 478 36 $50.66 $2.82 $29.54
--- ----- --- --- --- --- ------ ----- ------
Year Ended December 31, 2016
United States 233 2,093 122 85 766 44 $39.06 $2.04 $19.32
Algeria 64 - 6 24 - 2 44.15 - 25.63
Other International 19 - - 7 - - 43.18 - -
--- --- --- --- --- --- ----- --- ---
Total 316 2,093 128 116 766 46 $40.34 $2.04 $19.64
--- ----- --- --- --- --- ------ ----- ------
Average Daily Sales Sales Volumes
Volumes MMBOE
MBOE/d
Quarter Ended December 31, 2017 637 58
Quarter Ended December 31, 2016 774 71
Year Ended December 31, 2017 672 245
Year Ended December 31, 2016 793 290
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 December 31, 2017
United States $1,450 $258 $290 $(1) $5 $ -
Algeria 305 - 11 - - -
Other International 145 - - - - -
--- --- --- --- --- ---
Total $1,900 $258 $301 $(1) $5 $ -
------ ---- ---- --- --- --- ---
Quarter Ended December 31, 2016
United States $1,025 $443 $259 $39 $ - $ -
Algeria 309 - 22 - - -
Other International 120 - - - - -
--- --- --- --- --- ---
Total $1,454 $443 $281 $39 $ - $ -
------ ---- ---- --- --- --- --- ---
Year Ended December 31, 2017
United States $4,818 $1,348 $1,010 $26 $4 $(3)
Algeria 1,190 - 59 - - -
Other International 544 - - - - -
--- --- --- --- --- ---
Total $6,552 $1,348 $1,069 $26 $4 $(3)
------ ------ ------ --- --- ---
Year Ended December 31, 2016
United States $3,330 $1,564 $861 $253 $13 $(1)
Algeria 1,043 - 60 - - -
Other International 295 - - - - -
--- --- --- --- --- ---
Total $4,668 $1,564 $921 $253 $13 $(1)
------ ------ ---- ---- --- ---
Anadarko Petroleum Corporation
Estimated Year-End Proved Reserves 2015 - 2017
MMBOE 2017 2016 2015
---- ---- ----
Proved
Reserves
Beginning
of
year 1,722 2,057 2,858
Reserves
additions
and
revisions
Discoveries
and
extensions 114 40 29
Infill-
drilling
additions 71 69 89
--- --- ---
Drilling-
related
reserves
additions
and
revisions 185 109 118
Other
non-
price-
related
revisions 59 191 289
--- --- ---
Net
organic
reserves
additions 244 300 407
Acquisition
of
proved
reserves
in
place 3 97 1
Price-
related
revisions 92 (147) (624)
--- ---- ----
Total
reserves
additions
and
revisions 339 250 (216)
Sales
in
place (379) (294) (279)
Production (243) (291) (306)
---- ---- ----
End
of
year 1,439 1,722 2,057
----- ----- -----
Proved
Developed
Reserves
Beginning
of
year 1,325 1,632 1,969
----- ----- -----
End
of
year 1,127 1,325 1,632
----- ----- -----
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of February 6, 2018
Note: Guidance excludes sales volumes for Alaska due to divestiture.
1st-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
Units Units
Total Sales Volumes
(MMBOE) 55 - 58 238 - 248
Total Sales Volumes (MBOE/
d) 611 - 644 652 - 679
Oil (MBbl/d) 352 - 365 370 - 390
United States 270 - 280 286 - 303
Algeria 55 - 56 57 - 58
Ghana 27 - 29 27 - 29
Natural Gas (MMcf/d)
United States 1,025 - 1,075 1,085 - 1,125
Natural Gas Liquids (MBbl/
d)
United States 87 - 92 93 - 96
Algeria 4 - 6 5 - 6
$ / Unit $ / Unit
Price Differentials vs
NYMEX (w/o hedges)
Oil ($/Bbl) (0.80) - 3.20 (1.90) - 2.30
United States (2.00) - 2.00 (3.00) - 1.00
Algeria 3.00 - 7.00 2.00 - 7.00
Ghana 3.00 - 7.00 2.00 - 7.00
Natural Gas ($/Mcf)
United States (0.35) - (0.15) (0.45) - (0.20)
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of February 6, 2018
Note: Guidance excludes items affecting comparability.
1st-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
$ MM $ MM
Other Revenues
Marketing and Gathering Margin 145 - 165 700 - 780
Minerals and Other 30 - 50 190 - 230
$ / BOE $ / BOE
Costs and Expenses
Oil & Gas Direct Operating 4.70 - 4.90 4.25 - 4.75
Oil & Gas Transportation and Other 3.40 - 3.60 3.50 - 3.75
Depreciation, Depletion, and
Amortization 18.50 - 19.00 18.25 - 18.75
Production Taxes (% of Product
Revenue) 6.0% - 7.0% 6.0% - 7.0%
$ MM $ MM
General and Administrative 240 - 260 945 - 995
Other Operating Expense 5 - 15 40 - 50
Exploration Expense
Non-Cash 40 - 70 150 - 200
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 (25% Current/75%
Deferred for Q1 and 35% Current/
65% Deferred for Total Year) 15% - 25% 15% - 25%
Noncontrolling Interest 50 - 70 300 - 350
Avg. Shares Outstanding (MM)
Basic 520 - 530 520 - 530
Diluted 520 - 530 520 - 530
Capital Investment (Excluding
Western Gas Partners, LP) $ MM $ MM
APC Capital Expenditures 1,200 - 1,400 4,100 - 4,500
Anadarko Petroleum Corporation
Commodity Hedge Positions
As of February 6, 2018
Weighted Average Price per barrel
Volume Floor Sold Floor Purchased Ceiling Sold
(MBbls/d)
---------
Oil
Two-Way
Collars
2018
WTI 108 $50.00 $60.48
Fixed
Price -
Financial
2018
Brent 84 $61.45
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 February 6, 2018
Instrument Notional Amt. Reference Period Mandatory Rate Paid Rate Received
Termination Date
--- --- ---
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
---- ------------ ----------------- ---------- ----- --------
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes
Quarter Ended December 31, 2017 Quarter Ended December 31, 2016
Oil Natural Gas NGLs Total Oil Natural Gas NGLs Total
MBbls/d MMcf/d MBbls/d MBOE/d MBbls/d MMcf/d MBbls/d MBOE/d
------- ------ ------- ------ ------- ------ ------- ------
U.S. Onshore 156 934 79 390 120 986 76 360
Gulf of Mexico 120 85 9 143 81 93 9 106
International 80 - 3 83 96 - 8 104
Same-Store Sales 356 1,019 91 616 297 1,079 93 570
--- ----- --- --- --- ----- --- ---
Divestitures* 11 45 2 21 39 802 31 204
--- --- --- --- --- --- --- ---
Total 367 1,064 93 637 336 1,881 124 774
--- ----- --- --- --- ----- --- ---
Year Ended December 31, 2017 Year Ended December 31, 2016
Oil Natural Gas NGLs Total Oil Natural Gas NGLs Total
MBbls/d MMcf/d MBbls/d MBOE/d MBbls/d MMcf/d MBbls/d MBOE/d
------- ------ ------- ------ ------- ------ ------- ------
U.S. Onshore 128 966 79 368 123 991 73 361
Gulf of Mexico 121 107 10 149 65 82 7 86
International 89 - 4 93 83 - 6 89
Same-Store Sales 338 1,073 93 610 271 1,073 86 536
--- ----- --- --- --- ----- --- ---
Divestitures* 17 236 6 62 45 1,020 42 257
--- --- --- --- --- ----- --- ---
Total 355 1,309 99 672 316 2,093 128 793
--- ----- --- --- --- ----- --- ---
* Includes Eagleford, Marcellus,
Eaglebine, Utah CBM, Moxa,
Alaska, East Chalk,
Wamsutter, Ozona, Elm Grove,
Hugoton, Hearne, and
Carthage.
Note: Data for the quarter ended March 31, 2017, is presented for comparability to the company's First-Quarter 2018 Guidance.
Average Daily Sales Volumes
Quarter Ended March 31, 2017
Oil Natural Gas NGLs Total
MBbls/d MMcf/d MBbls/d MBOE/d
------- ------ ------- ------
U.S. Onshore 115 1,058 85 376
Gulf of Mexico 125 129 12 159
International 98 - 6 104
Same-Store Sales 338 1,187 103 639
--- ----- --- ---
Divestitures* 29 672 15 156
--- --- --- ---
Total 367 1,859 118 795
--- ----- --- ---
* Includes Eagleford, Marcellus,
Eaglebine, Utah CBM, Moxa,
Alaska, East Chalk,
Wamsutter, Ozona, Elm Grove,
Hugoton, Hearne, and
Carthage.
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SOURCE Anadarko Petroleum Corporation
