Anadarko Announces 2018 Second-Quarter Results
HOUSTON, July 31, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2018 second?quarter results, reporting net income attributable to common stockholders of $29 million, or $0.05 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 $249 million, or $0.49 per share (diluted), on an after-tax basis.((1) )Net cash provided by operating activities in the second quarter of 2018 was $1.23 billion.
SECOND-QUARTER 2018 HIGHLIGHTS
-- Increased U.S. onshore oil volumes by 47 percent on a
divestiture-adjusted basis and improved per-barrel margins by almost 50
percent year-over-year
-- Expanded West Texas infrastructure with the successful startup of the
Reeves Regional Oil Treating Facility (ROTF) during the quarter and
commissioning of the North Loving ROTF subsequent to quarter end
-- Achieved significant advancements on the Mozambique LNG project,
including new heads of agreements and expected cost reductions, with an
anticipated Final Investment Decision (FID) during the first half of
2019
-- Completed $3.0 billion of the share-repurchase program
"During the second quarter, we delivered a 54,000 barrel-per-day increase in our U.S. onshore oil volumes over the second quarter of 2017 on a divestiture-adjusted basis, while improving our per-barrel margins((2)) to nearly $31.60," said Al Walker, Anadarko Chairman, President and CEO. "Our project-management and midstream teams have done exceptional work to safely achieve the on-time startup of our initial ROTF in West Texas. This is a major accomplishment as the Reeves ROTF and newly commissioned North Loving ROTF are catalysts for production and cash-flow growth in the second half of this year and beyond. Our Mozambique LNG project has made excellent progress, and we expect a Final Investment Decision in the first half of 2019.
"The strong operational results and actions we have taken to enhance shareholder value reinforces our strategy to deliver capital-efficient growth and generate improved returns. While we have not increased our operated activity level, the current commodity-price environment has resulted in some modest service-cost inflation, as well as an increase in non-operated activity and non-consents, which present very high-return opportunities for Anadarko," added Walker. "We have also continued to core up acreage in the Delaware and DJ basins, which has enabled us to drill longer laterals with higher working interest for enhanced returns. Accordingly, we are increasing our anticipated full-year capital-investment expectations by $250 million from previous guidance. The updated guidance excludes approximately $100 million of leasehold acquisitions in an emerging oil play in Wyoming's Powder River Basin."
OPERATING HIGHLIGHTS
Anadarko's second-quarter 2018 sales volumes of oil, natural gas and natural gas liquids (NGLs) totaled 58 million barrels of oil equivalent (BOE), or an average of 637,000 BOE per day, which was at the high end of the company's second-quarter guidance.
In the Delaware Basin of West Texas, the company's oil production achieved record levels averaging 62,000 barrels of oil per day (BOPD) for the quarter, representing an 88-percent increase over the second quarter of 2017. The quarter was highlighted by the successful startup of the Reeves ROTF in May, as well as a record number of wells turned to sales. The company also advanced its first full pad development at the Silvertip-A location in Loving County, where it has completed 12 extended-reach lateral wells targeting multiple intervals in the Wolfcamp-A formation. These wells are expected to begin producing in the second half of 2018 and will flow to the recently commissioned North Loving ROTF.
In the DJ Basin of northeast Colorado, Anadarko continues its horizontal drilling campaign featuring natural-gas powered rigs and noise-reduction technology, two enhancements that improve the compatibility of operations with local communities. During the quarter, the DJ Basin averaged net production of 261,000 BOE per day.
In the Deepwater Gulf of Mexico, Anadarko averaged 115,000 BOPD in the second quarter as it leveraged its unmatched infrastructure, including the third successful tieback to the 100-percent-owned Horn Mountain facility. Development drilling is also underway in the North Hadrian field, which will be tied back to Anadarko's Lucius spar.
Sales volumes from Anadarko's international operations in Algeria and Ghana averaged 85,000 barrels per day during the second quarter of 2018. The Anadarko-operated Mozambique LNG project continued to make significant progress in the second quarter as the company announced it anticipates being in position to take FID in the first half of 2019 for the Golfinho/Atum development within the Anadarko-operated Offshore Area 1. Additionally, the company and its contractors expect to realize substantial cost savings, with Anadarko now expecting to deliver the first two onshore liquefaction trains with 12.88 million tonnes per annum (MTPA) capacity for less than $600 per tonne.
OPERATIONS REPORT
For additional details on Anadarko's second-quarter 2018 operations, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL HIGHLIGHTS
Anadarko's second-quarter capital investments, excluding Western Gas Partners, LP (WES), were approximately $1.5 billion, and the company closed the quarter with $2.3 billion of cash on hand. After completing the $3.0 billion share-repurchase program at the end of the second quarter, Anadarko announced a $1.0 billion expansion of the share-repurchase program, as well as a $500 million expansion of its debt-reduction program to be funded by future free cash flow. These expansions raise the aggregate equity and debt-buyback programs to $5.5 billion, with the board authorization for the share repurchases extended through the end of June 2019.
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host an investor conference call on Wednesday, Aug. 1, 2018, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss its second-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 4427245. 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.
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.
((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.
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 successfully execute upon its capital program; to efficiently identify and deploy capital resources; to meet financial and operating guidance and achieve production and cash-flow growth identified in this news release; to timely complete and commercially operate the projects, infrastructure and drilling prospects identified in this news release; to successfully drill, complete, test, and produce the wells identified in this report; to successfully complete the share-repurchase and debt-reduction programs; and to successfully plan, secure additional government approvals, enter into long-term sales contracts, take FID and the timing thereof, finance, build, achieve expected cost savings, 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
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 June 30, 2018
Before After Per Share
millions except per-
share amounts Tax Tax (diluted)
-------------------- --- --- --------
Net income (loss)
attributable to common
stockholders (GAAP) $29 $0.05
Adjustments for certain
items affecting
comparability
Total gains (losses) on
derivatives, net, less
net cash from settlement
of commodity
derivatives* $(267) (205) (0.40)
Gains (losses) on
divestitures, net 52 39 0.07
Impairments
Producing properties
(after noncontrolling
interest) (45) (35) (0.07)
Exploration assets (41) (31) (0.06)
Contingency accrual (13) (10) (0.02)
Change in uncertain tax
positions (7) (0.01)
Certain items affecting
comparability $(314) (249) (0.49)
----------------------- ----- ---- -----
Adjusted net income
(loss) (Non-GAAP) $278 $0.54
------------------- ---- -----
* Includes $32 million related
to interest-rate derivatives,
$(298) million related to
commodity derivatives, and $(1)
million related to gathering,
processing, and marketing sales.
Quarter Ended June 30, 2017
Before After Per Share
millions except per-
share amounts Tax Tax (diluted)
-------------------- --- --- --------
Net income (loss)
attributable to
common stockholders
(GAAP) $(415) $(0.76)
Adjustments for
certain items
affecting
comparability
Total gains (losses)
on derivatives,
net, less net cash
from settlement of
commodity
derivatives* $(45) (29) (0.05)
Gains (losses) on
divestitures, net 205 130 0.24
Impairments
Producing and
general properties (10) (7) (0.02)
Exploration assets (82) (65) (0.12)
Restructuring
charges (18) (11) (0.02)
Change in uncertain
tax positions (10) (0.02)
Certain items
affecting
comparability $50 8 0.01
-------------- --- --- ----
Adjusted net income
(loss) (Non-GAAP) $(423) $(0.77)
------------------- ----- ------
* Includes $(104) million
related to interest-rate
derivatives and $59 million
related to commodity 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.
Three Months Ended Six Months Ended
June 30, June 30,
millions 2018 2017 2018 2017
-------- ---- ---- ---- ----
Net income (loss)
attributable to
common stockholders
(GAAP) $29 $(415) $150 $(733)
Interest expense 237 229 465 452
Income tax expense
(benefit) 125 (38) 251 59
Depreciation,
depletion, and
amortization 1,003 1,037 1,993 2,152
Exploration expense 94 532 262 1,616
(Gains) losses on
divestitures, net (52) (205) (28) (1,009)
Impairments 128 10 147 383
Total (gains) losses
on derivatives,
net, less net cash
from settlement of
commodity
derivatives 267 45 240 (110)
Restructuring
charges - 18 - 17
------------- --- --- --- ---
Consolidated
Adjusted EBITDAX
(Margin) (Non-
GAAP) $1,831 $1,213 $3,480 $2,827
----------------- ------ ------ ------ ------
Total barrels of oil
equivalent (BOE) 58 57 116 129
-------------------- --- --- --- ---
Consolidated
Adjusted EBITDAX
(Margin) per BOE $31.57 $21.28 $30.00 $21.91
----------------- ------ ------ ------ ------
Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt in the capitalization ratio is useful to investors in determining the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt. In addition, management believes that presenting Anadarko's net debt excluding WGP is useful because WGP is a separate public company with its own capital structure.
June 30, 2018
Anadarko
Anadarko WGP* excluding
millions Consolidated Consolidated WGP
-------- ------------ ------------ ---
Total debt (GAAP) $16,293 $4,205 $12,088
Less cash and cash
equivalents 2,321 55 2,266
------------------ ----- --- -----
Net debt (Non-GAAP) $13,972 $4,150 $9,822
------------------ ------- ------ ------
Anadarko
Anadarko excluding
millions Consolidated WGP
-------- ------------ ---
Net debt $13,972 $9,822
Total equity 11,495 8,902
------------ ------ -----
Adjusted
capitalization $25,467 $18,724
--------------- ------- -------
Net debt to adjusted
capitalization
ratio 55% 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.
Anadarko Petroleum Corporation
Cash Flow Information
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
millions 2018 2017 2018 2017
-------- ---- ---- ---- ----
Cash Flows from Operating Activities
-----------------------------------
Net income (loss) $17 $(334) $191 $(609)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities
Depreciation,
depletion, and
amortization 1,003 1,037 1,993 2,152
Deferred income
taxes (15) 488 27 (172)
Dry hole expense and
impairments of
unproved properties 43 454 149 1,466
Impairments 128 10 147 383
(Gains) losses on
divestitures, net (52) (205) (28) (1,009)
Total (gains) losses
on derivatives, net 437 32 473 (115)
Operating portion of
net cash received
(paid) in
settlement of
derivative
instruments (171) 13 (234) 5
Other 65 76 139 159
Changes in assets
and liabilities (230) (714) (202) (280)
----------------- ---- ---- ---- ----
Net Cash Provided by
(Used in) Operating
Activities $1,225 $857 $2,655 $1,980
-------------------- ------ ---- ------ ------
Net Cash Provided by
(Used in) Investing
Activities $(1,943) $(504) $(3,056) $1,219
-------------------- ------- ----- ------- ------
Net Cash Provided by
(Used in) Financing
Activities $(319) $(174) $(1,826) $(372)
-------------------- ----- ----- ------- -----
Capital Expenditures
--------------------
Exploration and
Production and
other $1,257 $955 $2,371 $1,900
WES Midstream 301 151 628 437
Other Midstream* 240 104 503 128
--- --- ---
Total $1,798 $1,210 $3,502 $2,465
----- ------ ------ ------ ------
* Excludes WES.
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Six Months Ended
Summary Financial
Information June 30, June 30,
millions except per-
share amounts 2018 2017 2018 2017
-------------------- ---- ---- ---- ----
Consolidated Statements of Income
---------------------------------
Revenues and Other
------------------
Oil sales $2,265 $1,422 $4,392 $3,085
Natural-gas sales 203 319 450 821
Natural-gas liquids
sales 318 214 610 503
Gathering, processing,
and marketing sales 382 464 742 908
Gains (losses) on
divestitures and
other, net 123 297 142 1,166
----------------- --- --- --- -----
Total 3,291 2,716 6,336 6,483
----- ----- ----- ----- -----
Costs and Expenses
------------------
Oil and gas operating 275 229 551 485
Oil and gas
transportation 209 229 405 478
Exploration 94 532 262 1,616
Gathering, processing,
and marketing 252 355 489 705
General and
administrative 288 244 566 507
Depreciation,
depletion, and
amortization 1,003 1,037 1,993 2,152
Production, property,
and other taxes 201 135 391 290
Impairments 128 10 147 383
Other operating expense 22 12 162 34
----------------------- --- --- --- ---
Total 2,472 2,783 4,966 6,650
----- ----- ----- ----- -----
Operating Income (Loss) 819 (67) 1,370 (167)
---------------------- --- --- ----- ----
Other (Income) Expense
----------------------
Interest expense 237 229 465 452
(Gains) losses on
derivatives, net 436 32 471 (115)
Other (income) expense,
net 4 44 (8) 46
----------------------- --- --- --- ---
Total 677 305 928 383
----- --- --- --- ---
Income (Loss) Before
Income Taxes 142 (372) 442 (550)
-------------------- --- ---- --- ----
Income tax expense
(benefit) 125 (38) 251 59
------------------ --- --- --- ---
Net Income (Loss) 17 (334) 191 (609)
---------------- --- ---- --- ----
Net income (loss)
attributable to
noncontrolling
interests (12) 81 41 124
----------------- --- --- --- ---
Net Income (Loss)
Attributable to Common
Stockholders $29 $(415) $150 $(733)
----------------------- --- ----- ---- -----
Per Common Share
----------------
Net income (loss)
attributable to common
stockholders-basic $0.05 $(0.76) $0.28 $(1.34)
Net income (loss)
attributable to common
stockholders-diluted $0.05 $(0.76) $0.28 $(1.34)
----------------------- ----- ------ ----- ------
Average Number of
Common Shares
Outstanding-Basic 504 552 511 552
------------------ --- --- --- ---
Average Number of
Common Shares
Outstanding-Diluted 505 552 512 552
-------------------- --- --- --- ---
Exploration Expense
-------------------
Dry hole expense $2 $367 $55 $843
Impairments of unproved
properties 41 87 94 623
Geological and
geophysical,
exploration overhead,
and other expense 51 78 113 150
---------------------- --- --- --- ---
Total $94 $532 $262 $1,616
----- --- ---- ---- ------
Anadarko Petroleum Corporation
(Unaudited)
June 30, December 31,
millions 2018 2017
-------- ---- ----
Condensed Balance Sheets
------------------------
Cash and cash equivalents $2,321 $4,553
Accounts receivable, net of
allowance 1,909 1,829
Other current assets 402 380
Net properties and equipment 28,502 27,451
Other assets 2,301 2,211
Goodwill and other intangible
assets 5,646 5,662
----- -----
Total Assets $41,081 $42,086
------------ ------- -------
Short-term debt - Anadarko* 910 142
Short-term debt - WGP/WES 28 -
Other current liabilities 4,489 3,764
Long-term debt - Anadarko* 11,178 12,054
Long-term debt - WGP/WES 4,177 3,493
Deferred income taxes 2,317 2,234
Asset retirement obligations 2,456 2,500
Other long-term liabilities 4,031 4,109
Common stock 57 57
Paid-in capital 12,306 12,000
Retained earnings 1,054 1,109
Treasury stock (4,105) (2,132)
Accumulated other comprehensive
income (loss) (410) (338)
Total stockholders' equity 8,902 10,696
-------------------------- ----- ------
Noncontrolling interests 2,593 3,094
------------------------ ----- -----
Total Equity 11,495 13,790
------------ ------ ------
Total Liabilities and Equity $41,081 $42,086
---------------------------- ------- -------
Capitalization
--------------
Total debt $16,293 $15,689
Total equity 11,495 13,790
------------ ------ ------
Total $27,788 $29,479
----- ------- -------
Capitalization Ratios
---------------------
Total debt 59% 53%
---------- --- ---
Total equity 41% 47%
------------ --- ---
* 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 June 30, 2018
United States 284 1,037 95 27 94 8 $66.94 $2.15 $34.66
Algeria 52 - 5 5 - 1 74.73 - 39.34
Other International 28 - - 2 - - 71.76 - -
--- --- --- --- --- --- ----- --- ---
Total 364 1,037 100 34 94 9 $68.43 $2.15 $34.88
--- ----- --- --- --- --- ------ ----- ------
Quarter Ended June 30, 2017
United States 243 1,238 89 22 113 8 $46.68 $2.84 $24.82
Algeria 59 - 5 6 - - 48.20 - 30.48
Other International 29 - - 2 - - 49.44 - -
--- --- --- --- --- --- ----- --- ---
Total 331 1,238 94 30 113 8 $47.19 $2.84 $25.14
--- ----- --- --- --- --- ------ ----- ------
Six Months Ended June 30,
2018
United States 286 1,044 93 52 189 17 $64.75 $2.38 $33.97
Algeria 54 - 5 10 - 1 70.93 - 40.06
Other International 28 - - 5 - - 69.70 - -
--- --- --- --- --- --- ----- --- ---
Total 368 1,044 98 67 189 18 $66.03 $2.38 $34.27
--- ----- --- --- --- --- ------ ----- ------
Six Months Ended June 30,
2017
United States 256 1,547 100 46 280 18 $48.01 $2.93 $25.79
Algeria 64 - 6 12 - 1 50.89 - 34.36
Other International 29 - - 5 - - 51.57 - -
--- --- --- --- --- --- ----- --- ---
Total 349 1,547 106 63 280 19 $48.84 $2.93 $26.27
--- ----- --- --- --- --- ------ ----- ------
Average Daily Sales Sales Volumes
Volumes
MMBOE
MBOE/d
Quarter Ended June
30, 2018 637 58
Quarter Ended June
30, 2017 631 57
Six Months Ended
June 30, 2018 640 116
Six Months Ended
June 30, 2017 713 129
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 June 30, 2018
United States $1,726 $203 $301 $(176) $6 $ -
Algeria 359 - 17 - - -
Other International 180 - - - - -
--- --- --- --- --- ---
Total $2,265 $203 $318 $(176) $6 $ -
------ ---- ---- ----- --- --- ---
Quarter Ended June 30, 2017
United States $1,032 $319 $200 $14 $(1) $ -
Algeria 260 - 14 - - -
Other International 130 - - - - -
--- --- --- --- --- ---
Total $1,422 $319 $214 $14 $(1) $ -
------ ---- ---- --- --- --- ---
Six Months Ended June 30, 2018
United States $3,349 $450 $575 $(243) $5 $ -
Algeria 690 - 35 - - -
Other International 353 - - - - -
--- --- --- --- --- ---
Total $4,392 $450 $610 $(243) $5 $ -
------ ---- ---- ----- --- --- ---
Six Months Ended June 30, 2017
United States $2,223 $821 $467 $15 $(5) $(3)
Algeria 594 - 36 - - -
Other International 268 - - - - -
--- --- --- --- --- ---
Total $3,085 $821 $503 $15 $(5) $(3)
------ ---- ---- --- --- ---
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 31, 2018
Note: Guidance excludes sales volumes for Alaska and Ram Powell due to divestiture.
3rd-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
Units Units
Total Sales Volumes
(MMBOE) 60 - 65 240 - 250
Total Sales Volumes (MBOE/
d) 652 - 707 658 - 685
Oil (MBbl/d) 374 - 409 377 - 397
United States 275 - 300 288 - 305
Algeria 65 - 71 60 - 62
Ghana 34 - 38 29 - 30
Natural Gas (MMcf/d)
United States 1,020 - 1,110 1,040 - 1,100
Natural Gas Liquids (MBbl/
d)
United States 99 - 107 97 - 102
Algeria 5 - 6 5 - 6
$ / Unit $ / Unit
Price Differentials vs
NYMEX (w/o hedges)
Oil ($/Bbl) (0.80) - 3.20 (1.90) - 2.00
United States (3.00) - 1.00 (3.00) - 1.00
Algeria 3.00 - 7.00 3.00 - 7.00
Ghana 3.00 - 7.00 3.00 - 7.00
Natural Gas ($/Mcf)
United States (0.75) - (0.50) (0.70) - (0.45)
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 31, 2018
Note: Guidance excludes items affecting comparability.
3rd-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
------------------ ------------------
$ MM $ MM
Other Revenues
Marketing and Gathering Margin 145 - 165 600 - 650
Minerals and Other 60 - 80 250 - 270
$ / BOE $ / BOE
Costs and Expenses
Oil & Gas Direct Operating 4.50 - 4.75 4.40 - 4.75
Oil & Gas Transportation and Other 3.20 - 3.45 3.20 - 3.55
Depreciation, Depletion, and
Amortization 17.50 - 18.00 17.00 - 17.50
Production Taxes (% of Product
Revenue) 7.0% - 8.0% 7.0% - 7.5%
$ MM $ MM
General and Administrative 245 - 265 1,040 - 1,090
Other Operating Expense 35 - 45 110 - 130
Exploration Expense
Non-Cash - - 20 75 - 100
Cash 45 - 55 200 - 220
Interest Expense (net) 235 - 245 930 - 960
Other (Income) Expense (5) - 5 (20) - 20
Taxes
Algeria (100% Current) 60% - 70% 60% - 70%
Rest of Company (25% Current/75%
Deferred for Q3 and 25% Current/
75% Deferred for Total Year) 20% - 30% 20% - 30%
Noncontrolling Interest 65 - 85 200 - 250
Avg. Shares Outstanding (MM)
Basic 498 - 502 503 - 507
Diluted 499 - 503 503 - 507
Capital Investment (Excluding
Western Gas Partners, LP) $ MM $ MM*
APC Capital Expenditures 1,050 - 1,250 4,500 - 4,800
* Excludes $100 million Powder River Basin lease acquisition
Anadarko Petroleum Corporation
Commodity Hedge Positions
As of July 31, 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
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 July 31, 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 June 30, 2018 Quarter Ended June 30, 2017
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 169 969 86 417 115 968 76 352
Gulf of Mexico 114 66 9 134 112 102 9 138
International 80 - 5 85 88 - 5 93
Same-Store Sales 363 1,035 100 636 315 1,070 90 583
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Divestitures* 1 2 - 1 16 168 4 48
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Total 364 1,037 100 637 331 1,238 94 631
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Six Months Ended June 30, 2018 Six Months Ended June 30, 2017
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 163 968 84 408 115 1,013 80 364
Gulf of Mexico 120 72 9 141 118 114 10 147
International 82 - 5 87 93 - 6 99
Same-Store Sales 365 1,040 98 636 326 1,127 96 610
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Divestitures* 3 4 - 4 23 420 10 103
--- --- --- --- --- --- --- ---
Total 368 1,044 98 640 349 1,547 106 713
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* Includes Ram Powell,
Alaska, Eagleford,
Marcellus, Eaglebine, Utah
CBM, and Moxa.
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SOURCE Anadarko Petroleum Corporation
