Anadarko Announces 2018 Fourth-Quarter And Full-Year Results
HOUSTON, Feb. 5, 2019 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2018 fourth?quarter results, reporting net income attributable to common stockholders of $102 million, or $0.21 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 $82 million, or $0.17 per share (diluted), on an after-tax basis.((1) )Net cash provided by operating activities in the fourth quarter of 2018 was $1.6 billion.
For the year ended Dec. 31, 2018, Anadarko reported net income attributable to common stockholders of $615 million, or $1.20 per share (diluted). Full-year 2018 net cash provided by operating activities totaled $5.9 billion.
2018 HIGHLIGHTS
-- Reached $3.75 billion of total share repurchases, representing 12
percent of shares outstanding
-- Retired more than $600 million of debt during the year
-- Increased the per-share dividend from 5 cents to 30 cents
-- Announced Western Gas simplification transaction and $4 billion
midstream asset sale
-- Significantly expanded Delaware Basin oil, natural gas, and water
infrastructure
-- Positioned Mozambique LNG for expected sanctioning decision in the first
half of 2019
"In 2018, we delivered on our commitment to increase the return of cash to investors through repurchasing stock, retiring debt and increasing our dividend," said Anadarko Chairman and CEO Al Walker. "As we look to 2019 and beyond, we remain focused on enhancing our capital efficiency by further improving our per-barrel margins and lowering our free cash flow breakeven oil price to continue meeting our cash-return objectives. We believe our portfolio and people give us an industry-leading ability to accomplish this while maintaining the financial flexibility to invest in our future as we anticipate progressing toward a final investment decision (FID) in the Mozambique LNG project in the first half of the year."
SALES VOLUME AND PROVED RESERVES
Anadarko's full-year sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 243 million barrels of oil equivalent (BOE), or an average of 666,000 BOE per day. Fourth-quarter 2018 sales volume of oil, natural gas and NGLs averaged approximately 701,000 BOE per day.
In 2018, Anadarko organically added 284 million BOE of proved reserves before the effects of price revisions. Anadarko's costs incurred were $4.6 billion. The company's oil and natural gas exploration and development costs were $4.5 billion.((2)) The company estimates its proved reserves at year-end 2018 totaled 1.47 billion BOE, with 78 percent of its reserves categorized as proved developed. At year-end 2018, Anadarko's proved reserves were comprised of 63 percent liquids and 37 percent natural gas.
OPERATING HIGHLIGHTS
In West Texas, Anadarko's Delaware Basin oil sales volume averaged 75,000 barrels per day, with total volume averaging 127,000 BOE per day, in the fourth quarter of 2018. Much of the company's focus in 2018 in the Delaware Basin centered on expanding its extensive network of infrastructure to facilitate the company's transition to pad development. During the year, Anadarko successfully started up the Reeves and Loving Regional Oil Treating Facilities, which added 120,000 barrels per day of oil-processing capacity, and in the fourth quarter, Western Gas started up its first train at the Mentone gas-processing plant. These activities support Anadarko's Silvertip-A campaign, which is the company's first multi-well and multi-pad development with optimized infrastructure. In 2019, Anadarko expects to average approximately 10 operated rigs and five completion crews with plans to bring more than 150 operated wells to sales.
Anadarko's DJ Basin assets in Colorado averaged approximately 272,000 BOE per day during the fourth quarter of 2018, which included 102,000 barrels of oil per day. In 2019, the company expects to average four operated rigs and three completion crews while bringing more than 250 operated wells to sales.
In August 2018, Anadarko announced new details about its high-potential position in Wyoming's Powder River Basin. The company's core position includes approximately 300,000 gross acres with significant stacked-oil potential. Anadarko's 2019 activity in the Powder River Basin will focus on appraisal activity targeting the Turner formation, as the company expects to average one operated rig and completion crew and deliver more than 10 operated appraisal wells to sales.
Anadarko's Gulf of Mexico sales volume averaged 142,000 BOE per day in the fourth quarter of 2018, which included 120,000 barrels of oil per day. The company's leading infrastructure position continues to provide highly economic tieback opportunities, including new wells and developments at its 100-percent-owned Constitution, Horn Mountain, Holstein and Marlin platforms. This year, Anadarko plans to operate up to two drillships and two platform rigs and bring approximately 10 wells to sales in the areas near its Constellation, Holstein, Horn Mountain, K2, Lucius, and North Hadrian producing assets.
Anadarko's international sales volume averaged 102,000 barrels per day during the fourth quarter of 2018. The company also continued to make significant progress with its Mozambique LNG project, announcing Sale and Purchase Agreements (SPAs) with Tokyo Gas Co., Ltd; Centrica LNG Company Ltd., a subsidiary of Centrica plc; Shell International Trading Middle East Ltd; and CNOOC Gas and Power Singapore Trading & Marketing Pte. Ltd. These SPAs, coupled with the project's progress toward securing financing, and preparation of the onshore location for development, continue to position Anadarko to take FID during the first half of this year.
OPERATIONS REPORT
For additional details on Anadarko's fourth-quarter 2018 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL HIGHLIGHTS
The company ended 2018 with $1.3 billion of cash. Since September 2017, Anadarko has announced equity-buyback and debt-reduction programs totaling $7 billion. The company repurchased $250 million of its common stock and retired $500 million of debt during the fourth quarter of 2018, bringing total share repurchases to $3.75 billion and total debt retirement to more than $600 million under these programs. During 2018, the company also increased its per-share dividend 500 percent, from 5 cents to 30 cents.
"We have returned tremendous value to our shareholders totaling more than $4.5 billion through share repurchases, dividend increases and debt reductions, and we expect to complete the remaining $1.25 billion of authorized share repurchases and $1.4 billion of debt reduction by mid-2020," said Walker. "While we expect market volatility to continue for some time, we are maintaining our previously announced capital expectations, which enable us to operate within anticipated discretionary cash flow at $50 oil and remain committed to our durable strategy of maximizing capital efficiency and enhancing returns on a multi-year basis."
2019 CAPITAL EXPECTATIONS AND SALES-VOLUME GUIDANCE
Anadarko's 2019 guidance remains the same as announced in November 2018. The company expects full-year capital investments in the range of $4.3 to $4.7 billion.((3))
2019 Capital Expectations(3)
By Area Billions By Type
U.S. $
3.15 Resource 70
Onshore* Plays*
%
Deepwater 0.50 Conventional 16
Gulf of Oil**
Mexico %
Algeria 0.20 Exploration 10
and and LNG
Ghana %
Exploration 0.25 Corporate 4
%
LNG 0.20
* Delaware, DJ, and Powder River
basins, and other. Also includes
approximately $80 million of
midstream investment prior to the
Western Gas Partners, LP (WES)
midstream transaction, which is
expected to close in the first
quarter 2019
** Deepwater Gulf of Mexico,
Algeria, and Ghana operations
Note: All amounts are approximates.
Sales-Volume Expectations(4)
2018 Actuals 2019 Expectations
---
Total (MMBOE) 243
260 - 270
Oil (MBOPD) 383
410 - 435
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host an investor conference call on Wednesday, Feb. 6, 2019, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2018 results as well as plans and expectations for 2019. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 7656732. 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
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 capital investments
made by Western Gas Partners, LP
(NYSE: WES).
(4) Amounts are divestiture adjusted.
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 2018, the company had 1.47 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 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 improve margins and enhance returns; 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 and realize the expected benefits; to successfully complete the share-repurchase and debt-reduction programs; and to successfully plan, secure additional government and partner approvals, enter into long-term sales contracts, take FID and the timing thereof, 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
INVESTORS:
Mike Pearl, mike.pearl@anadarko.com, 832.636.3271
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Jon VandenBrand, jon.vandenbrand@anadarko.com, 832.636.1007
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
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, 2018
Before After Per Share
millions except per-
share amounts Tax Tax (diluted)
---
Net income (loss)
attributable to common
stockholders (GAAP) $
102 $
0.21
Adjustments for certain
items affecting
comparability
Total gains (losses) on
derivatives, net, less
net cash from settlement
of commodity
derivatives* $
480 370 0.75
Gains (losses) on
divestitures, net (11) (8) (0.02)
Lower-of-cost-or-
market inventory
adjustments (21) (17) (0.04)
Impairments -Producing
properties (after
noncontrolling interest) (431) (331) (0.67)
Contingency adjustments (15) (12) (0.03)
Reorganization-related
charges (40) (31) (0.06)
Impact of tax reform
legislation (100) (0.20)
Change in uncertain tax
positions 47 0.10
Certain items affecting
comparability $
(38) (82) (0.17)
---
Adjusted net income
(loss) (Non-GAAP) $
184 $
0.38
---
* Includes $629 million related to
commodity derivatives, $(148)
million related to interest-rate
derivatives and $(1) million
related to gathering, processing,
and marketing sales.
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.
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 2018 2017
---
Net income (loss)
attributable to
common stockholders
(GAAP) $
615 $
(456)
Interest expense 947 932
Income tax expense
(benefit) 733 (1,477)
Depreciation,
depletion, and
amortization 4,254 4,279
Exploration expense
(1) 459 2,535
(Gains) losses on
divestitures, net (20) (674)
Impairments 800 408
Total (gains) losses
on derivatives, net,
less net cash from
settlement of
commodity derivatives (407) 156
Restructuring charges 53 21
(Gains) losses on
early extinguishment
of debt (2) 2
---
Consolidated Adjusted
EBITDAX (Margin)
(Non-GAAP) $
7,432 $
5,726
---
Total barrels of oil
equivalent (MMBOE) 243 245
---
Consolidated Adjusted
EBITDAX (Margin) per
BOE $
30.58 $
23.37
---
(1) Includes restructuring charges
of $20 million for the year
ended December 31, 2018.
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, 2018
---
Costs incurred
(GAAP)* $
4,569
Asset
retirement
obligation
liabilities
incurred (357)
Cash
expenditures
for asset
retirement
obligations 263
---
Oil and natural
gas
exploration
and
development
costs (Non-
GAAP) $
4,475
---
* Includes $202 million of
unproved property acquisitions.
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
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, 2018
Anadarko
Anadarko WGP* excluding
millions Consolidated Consolidated WGP
---
Total debt (GAAP) $
16,417 $
4,815 $
11,602
Less cash and cash
equivalents 1,295 92 1,203
---
Net debt (Non-GAAP) $
15,122 $
4,723 $
10,399
---
Anadarko
Anadarko excluding
millions Consolidated WGP
---
Net debt $
15,122 $
10,399
Total equity 10,943 8,496
---
Adjusted
capitalization $
26,065 $
18,895
---
Net debt to adjusted 58 55
capitalization
ratio % %
---
* 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)
Three Months Ended
Year Ended
December 31,
December 31,
millions 2018 2017 2018 2017
--- ---
Cash Flows from Operating Activities
---
Net income (loss) $
134 $
1,039 $
752 $
(211)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities
Depreciation, depletion,
and amortization 1,131 1,044 4,254 4,279
Deferred income taxes (2) (1,143) 139 (2,169)
Dry hole expense and
impairments of unproved
properties 34 77 246 2,221
Impairments 481 25 800 408
(Gains) losses on
divestitures, net 11 141 (20) (674)
(Gains) losses on early
extinguishment of debt (4) (2) 2
Total (gains) losses on
derivatives, net (368) 164 138 131
Operating portion of net
cash received (paid) in
settlement of
derivative instruments (112) 4 (545) 25
Other 72 78 294 303
Changes in assets and
liabilities 250 (39) (127) (306)
---
Net Cash Provided by
(Used in) Operating
Activities $
1,627 $
1,390 $
5,929 $
4,009
---
Net Cash Provided by
(Used in) Investing
Activities $
(1,323) $
(1,002) $
(5,982) $
(1,030)
---
Net Cash Provided by
(Used in) Financing
Activities $
(871) $
(1,086) $
(3,177) $
(1,613)
---
Capital Expenditures
---
Exploration and
Production and other* $
897 $
1,008 $
4,264 $
3,884
WES Midstream 258 294 1,178 956
Other Midstream** 85 202 743 460
Total $
1,240 $
1,504 $
6,185 $
5,300
---
* The year-ended December 31,
2018 includes $181 million, of
which $176 million was
unbudgeted, related to Powder
River Basin acquisitions.
**
Excludes WES.
Anadarko Petroleum Corporation
(Unaudited)
Three Months Ended Twelve Months Ended
Summary Financial
Information December 31, December 31,
millions except per-
share amounts 2018 2017 2018 2017
--- ---
Consolidated Statements of Income
---
Revenues and Other
---
Oil sales $
2,242 $
1,900 $
9,206 $
6,552
Natural-gas sales 323 258 1,005 1,348
Natural-gas liquids
sales 279 301 1,271 1,069
Gathering, processing,
and marketing sales 425 583 1,588 2,000
Gains (losses) on
divestitures and
other, net 80 (113) 312 939
---
Total 3,349 2,929 13,382 11,908
---
Costs and Expenses
---
Oil and gas operating 308 250 1,153 988
Oil and gas
transportation 245 216 878 914
Exploration 79 169 459 2,535
Gathering, processing,
and marketing 302 451 1,047 1,552
General and
administrative 270 226 1,084 994
Depreciation,
depletion, and
amortization 1,131 1,044 4,254 4,279
Production, property,
and other taxes 189 133 826 582
Impairments 481 25 800 408
Other operating expense 74 64 262 221
---
Total 3,079 2,578 10,763 12,473
---
Operating Income (Loss) 270 351 2,619 (565)
---
Other (Income) Expense
---
Interest expense 244 252 947 932
(Gains) losses on early
extinguishment of debt (4) (2) 2
(Gains) losses on
derivatives, net (373) 168 130 135
Other (income) expense,
net 43 3 59 54
---
Total (90) 423 1,134 1,123
---
Income (Loss) Before
Income Taxes 360 (72) 1,485 (1,688)
---
Income tax expense
(benefit) 226 (1,111) 733 (1,477)
---
Net Income (Loss) 134 1,039 752 (211)
---
Net income (loss)
attributable to
noncontrolling
interests 32 63 137 245
---
Net Income (Loss)
Attributable to Common
Stockholders $
102 $
976 $
615 $
(456)
---
Per Common Share
---
Net income (loss)
attributable to common
stockholders-basic $
0.21 $
1.80 $
1.20 $
(0.85)
Net income (loss)
attributable to common
stockholders-diluted $
0.21 $
1.80 $
1.20 $
(0.85)
---
Average Number of
Common Shares
Outstanding-Basic 493 537 504 548
---
Average Number of
Common Shares
Outstanding-Diluted 494 537 504 548
---
Exploration Expense
---
Dry hole expense $
32 $
25 $
87 $
1,433
Impairments of unproved
properties 1 52 159 788
Geological and
geophysical,
exploration overhead,
and other expense 46 92 213 314
---
Total $
79 $
169 $
459 $
2,535
---
Anadarko Petroleum Corporation
(Unaudited)
December 31, December 31,
millions 2018 2017
--- ---
Condensed Balance Sheets
---
Cash and cash
equivalents $
1,295 $
4,553
Accounts receivable, net
of allowance 2,026 1,829
Other current assets 474 380
Net properties and
equipment 28,615 27,451
Other assets 2,336 2,211
Goodwill and other
intangible assets 5,630 5,662
Total Assets $
40,376 $
42,086
---
Short-term debt -
Anadarko* 919 142
Short-term debt - WGP/
WES 28
Other current
liabilities 3,711 3,764
Long-term debt -
Anadarko* 10,683 12,054
Long-term debt - WGP/
WES 4,787 3,493
Deferred income taxes 2,437 2,234
Asset retirement
obligations 2,847 2,500
Other long-term
liabilities 4,021 4,109
Common stock 57 57
Paid-in capital 12,393 12,000
Retained earnings 1,245 1,109
Treasury stock (4,864) (2,132)
Accumulated other
comprehensive income
(loss) (335) (338)
Total stockholders'
equity 8,496 10,696
---
Noncontrolling interests 2,447 3,094
---
Total Equity 10,943 13,790
---
Total Liabilities and
Equity $
40,376 $
42,086
---
Capitalization
---
Total debt $
16,417 $
15,689
Total equity 10,943 13,790
---
Total $
27,360 $
29,479
---
Capitalization Ratios
---
Total debt 60
%
% 53
Total equity 40
%
% 47
---
* Excludes WES and WGP
Anadarko Petroleum Corporation
(Unaudited)
Sales Volume and Prices
Average Daily Sales Volume
Sales Volume
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,
2018
United States 309 1,118 104 30 103 8 $
58.60 $
3.14 $
27.57
Algeria 62 4 5 1 64.41 44.34
Other International 36 3 62.79 0.66
Total 407 1,118 108 38 103 9 $
59.86 $
3.14 $
28.20
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
Year Ended December 31, 2018
United States 294 1,069 98 108 390 35 $
64.01 $
2.57 $
33.46
Algeria 59 5 21 2 70.80 43.25
Other International 32 12 69.63 0.66
Total 385 1,069 103 141 390 37 $
65.51 $
2.57 $
33.93
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
Average Daily Sales Volume Sales Volume
MBOE/d
MMBOE
Quarter Ended
December 31, 2018 701 64
Quarter Ended
December 31, 2017 637 58
Year Ended December
31, 2018 666 243
Year Ended December
31, 2017 672 245
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, 2018
United States $
1,666 $
323 $
262 $
(82) $
(26)
$
Algeria 366 17
Other International 210
Total $
2,242 $
323 $
279 $
(82) $
(26)
$
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
$
Year Ended December 31, 2018
United States $
6,873 $
1,005 $
1,193 $
(527) $
(18)
$
Algeria 1,518 78
Other International 815
Total $
9,206 $
1,005 $
1,271 $
(527) $
(18)
$
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)
Anadarko Petroleum Corporation
Estimated Year-End Proved Reserves 2018 - 2016
MMBOE 2018 2017 2016
Proved
Reserves
Beginning of
year 1,439 1,722 2,057
Reserves
additions
and
revisions
Discoveries
and
extensions 164 114 40
Infill-
drilling
additions 181 71 69
Drilling-
related
reserves
additions
and
revisions 345 185 109
Other non-
price-
related
revisions (61) 59 191
Net organic
reserves
additions 284 244 300
Acquisition
of proved
reserves in
place 3 97
Price-
related
revisions 29 92 (147)
Total
reserves
additions
and
revisions 313 339 250
Sales in
place (37) (379) (294)
Production (242) (243) (291)
End of year 1,473 1,439 1,722
Proved
Developed
Reserves
Beginning of
year 1,127 1,325 1,632
End of year 1,148 1,127 1,325
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of February 5, 2019
1st-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
Units
Units
Total Sales Volume (MMBOE) 60 64 260 270
Total Sales Volume (MBOE/
d) 667 711 712 740
Oil (MBbl/d) 384 411 410 435
United States 305 325 324 341
Algeria 53 57 56 60
Ghana 26 29 30 34
Natural Gas (MMcf/d)
United States 1,100 1,175 1,100 1,200
Natural Gas Liquids (MBbl/
d)
United States 96 104 103 111
Algeria 4 5 4 5
$ / Unit
$ / Unit
Price Differentials vs
NYMEX (w/o hedges)
Oil ($/Bbl) (0.60) 3.50 (0.70) 3.30
United States (2.00) 2.00 (2.00) 2.00
Algeria 5.00 9.00 4.00 8.00
Ghana 5.00 9.00 4.00 8.00
Natural Gas ($/Mcf)
United States (0.60) (0.35) (0.70) (0.45)
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of February 5, 2019
Note: Guidance excludes items affecting comparability.
1st-Qtr Full-Year
Guidance (see Note) Guidance (see Note)
$ MM
$ MM
Other Revenues
Marketing and Gathering Margin 145 185 700 800
Minerals and Other 70 90 270 310
$ / BOE
$ / BOE
Costs and Expenses
Oil & Gas Direct Operating 5.00 5.50 4.40 4.80
Oil & Gas Transportation and Other 3.50 3.70 3.60 3.80
Depreciation, Depletion, and
Amortization 16.75 17.50 17.25 18.00
Production Taxes (% of Product 6.5 7.5 6.5 7.5
Revenue) % % % %
$ MM
$ MM
General and Administrative 275 300 1,100 1,200
Other Operating Expense 15 35 35 55
Exploration Expense
Non-Cash 20 120 170
Cash 55 65 190 210
Interest Expense (net) 255 265 1,050 1,090
Other (Income) Expense (10) 10 (20) 20
Taxes
Algeria (100% Current) 60 70 60 70
% % % %
Rest of Company (175% Current/
(75)% Deferred for Q1 and 275% % % % %
Current/(175)% Deferred for Total
Year) 20 30 10 20
Noncontrolling Interest 70 90 380 420
Avg. Shares Outstanding (MM)
Basic 490 495 490 495
Diluted 490 495 490 495
Capital Investment (Excluding
Western Gas Partners, LP)
$ MM
$ MM
APC Capital Expenditures 1,100 1,300 4,300 4,700
Anadarko Petroleum Corporation
Commodity Hedge Positions
As of February 5, 2019
Weighted Average Price per barrel
Volume Floor Sold
Floor Purchased Ceiling Sold
(MBbls/d)
Oil
Three-Way Collars
2019
WTI 57 $
45.00 $
55.00 $
70.22
Brent 30 $
50.00 $
60.00 $
78.22
87
Interest-Rate Derivatives
As of February 5, 2019
Instrument
Notional Amt.
Reference Period
Mandatory Rate Paid
Rate Received
Termination Date
--- ---
Anadarko
Swap
$550 Million
September 2016 - 2046
September 2020 6.418%
3M LIBOR
Swap
$250 Million
September 2016 - 2046
September 2022 6.809%
3M LIBOR
Swap
$100 Million
September 2017 - 2047
September 2020 6.891%
3M LIBOR
Swap
$250 Million
September 2017 - 2047
September 2021 6.570%
3M LIBOR
Swap
$450 Million
September 2017 - 2047
September 2023 6.445%
3M LIBOR
WES
Swap
$250 Million
December 2019 - 2024
December 2019 2.730%
3M LIBOR
Swap
$250 Million
December 2019 - 2029
December 2019 2.856%
3M LIBOR
Swap
$250 Million
December 2019 - 2049
December 2019 2.905%
3M LIBOR
--- ---
Ana
darko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volume
Quarter Ended December 31, 2018 Quarter Ended December 31, 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 189 1,038 95 457 156 934 79 390
Gulf of Mexico 120 80 9 142 119 73 9 140
International 98 4 102 80 3 83
Same-Store Sales 407 1,118 108 701 355 1,007 91 613
Divestitures* 12 57 2 24
Total 407 1,118 108 701 367 1,064 93 637
Year Ended December 31, 2018 Year Ended December 31, 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 172 990 89 426 128 966 79 368
Gulf of Mexico 120 77 9 142 120 102 10 147
International 91 5 96 89 4 93
Same-Store Sales 383 1,067 103 664 337 1,068 93 608
Divestitures* 2 2 2 18 241 6 64
Total 385 1,069 103 666 355 1,309 99 672
* Includes Ram Powell, Alaska,
Eagleford, Marcellus,
Eaglebine, Utah CBM, and
Moxa.
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SOURCE Anadarko Petroleum Corporation
