Anadarko Petroleum Corporation (APC) today announced 2014 fourth-quarter results, reporting a net loss attributable to common stockholders of $395 million, or $0.78 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 $582 million, or $1.15 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the fourth quarter of 2014 was $1.952 billion, and discretionary cash flow totaled $2.412 billion.(2)
For the year ended Dec. 31, 2014, Anadarko reported a net loss attributable to common stockholders of $1.750 billion, or $3.47 per share (diluted), which includes a net loss of $4.045 billion associated with the settlement of the Tronox Adversary Proceeding, after tax. Full-year 2014 cash flow from operating activities was $8.466 billion. Discretionary cash flow for the year totaled $9.404 billion.(2)
2014 HIGHLIGHTS
- Delivered sales-volume growth of more than 11 percent, increasing year-over-year sales volumes by approximately 86,000 barrels of oil equivalent (BOE) per day on a divestiture-adjusted basis(3)
- Achieved a reserve-replacement ratio of more than 160 percent at competitive costs
- Accelerated more than $2.5 billion of value through asset monetizations
- Achieved significant progress on several large-scale projects, highlighted by the recent startup of the 80,000-barrels-of-oil-per-day (BOPD) Lucius spar in the deepwater Gulf of Mexico
“Anadarko’s fourth-quarter operating performance was a capstone to another terrific year for our company,” said Anadarko Chairman, President and CEO Al Walker. “In 2014, we demonstrated the quality of our portfolio by delivering results that exceeded the midpoint of our initial sales-volume guidance by approximately 38,000 BOE per day,(3) while staying well within our initial range of capital investment guidance and generating free cash flow.(2) This outperformance was primarily driven by results in the Wattenberg field, where we enhanced efficiencies in our drilling and completions and leveraged the competitive advantage of our expansive midstream infrastructure to significantly bolster our growth. We believe our efficient allocation of capital, active portfolio management and commitment
to financial discipline position Anadarko to deliver differentiating performance in the challenging current environment and as commodity prices recover.”
SALES VOLUMES AND PROVED RESERVES
Anadarko’s full-year sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled a record 306 million BOE, or an average of 838,000 BOE per day, on a divestiture-adjusted basis.(3)Fourth-quarter 2014 sales volumes of natural gas, crude oil and NGLs totaled 79 million BOE, or an average of 854,000 BOE per day.
Anadarko organically added 503 million BOE of proved reserves in 2014 before the effects of price revisions and incurred oil and natural gas exploration and development costs of approximately $8.8 billion.(2) The company estimates its proved reserves at year-end 2014 totaled approximately 2.86 billion BOE, with 69 percent of its reserves categorized as proved developed. At year-end 2014, Anadarko’s proved reserves were comprised of 49 percent liquids and 51 percent natural gas.
U.S. ONSHORE HIGHLIGHTS
In 2014, Anadarko’s U.S. onshore operating areas achieved a 16-percent year-over-year increase in total sales volumes, including an increase of 78,000 barrels per day in liquids volumes, and an approximate 50-percent increase, or 49,000 BOPD, in oil volumes on a divestiture-adjusted basis.(3)This growth was driven by record production in several major growth plays, including the Wattenberg field, Eagleford Shale and Wolfcamp Shale.
Anadarko’s Wattenberg field in Colorado continued to demonstrate excellent performance as the company achieved year-over-year growth of approximately 55 percent, increasing sales volumes by more than 60,000 BOE per day over its 2013 average of 109,000 BOE per day. Significant infrastructure was placed in service in the field during the year, including the Lancaster cryogenic plant, Front Range NGL pipeline and more than 300 million cubic feet per day of additional field compression. These expansions, coupled with continued strong reservoir performance and enhanced drilling and completions efficiencies, underpinned Wattenberg’s production growth.
In the Delaware Basin in West Texas, the company exited the year with ten operated rigs and continued its successful evaluation of the extensive Wolfcamp Shale oil opportunity. Anadarko continues to expand key infrastructure to facilitate future growth from the basin, including the integration of the Nuevo Midstream assets acquired by Anadarko’s midstream limited partnership, Western Gas Partners, LP (WES).
INTERNATIONAL AND DEEPWATER HIGHLIGHTS
In 2014, Anadarko advanced multiple significant mega projects and achieved a net production record at the El Merk project in Algeria. The company commissioned the 80,000-BOPD Lucius facility in the deepwater Gulf of Mexico and achieved first oil on Jan. 16, 2015 – just over three years from project sanction. Also in the Gulf of Mexico, the 80,000-BOPD Heidelberg project remains on track for first oil in 2016, as construction on the topsides is more than 70-percent complete, and two deepwater drilling rigs are actively drilling development wells in the field. In addition, Anadarko’s non-operated 80,000-barrels-per-day TEN development offshore Ghana also remains on schedule with first production expected in 2016, and new gas-handling infrastructure was completed in the adjacent Jubilee field during the fourth quarter, which is expected to enable increased oil production beginning in 2015.
During the fourth quarter, the Government of Mozambique gazetted the Decree Law, which is an important step in providing the appropriate framework for a stable business environment for investors, customers, financiers and construction contractors as Anadarko advances its large-scale LNG project. Anadarko and its partners in Mozambique’s Offshore Area 1 have continued to advance long-term LNG sales agreements with the recent addition of new non-binding Heads of Agreement (HOAs) with customers in Asian markets. With these new agreements, the partners have HOAs in place covering a total of more than 8 million tonnes per annum.
Anadarko also maintained an active exploration and appraisal program during the year, laying the foundation for potential future mega projects. Appraisal activity offshore Côte d’Ivoire at the Paon discovery and in the Gulf of Mexico at the Shenandoah discovery continued to validate the company’s geologic models around these apparent commercial discoveries.
OPERATIONS REPORT
For additional details on Anadarko’s fourth-quarter 2014 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL HIGHLIGHTS
Anadarko ended 2014 with approximately $7.4 billion of cash on hand and, subsequent to year-end, the company remitted final payment to fully resolve the Tronox Adversary Proceeding, converted its secured debt revolver to an unsecured facility and announced a commercial paper program.
During the year, the company generated approximately $150 million of free cash flow, including $696 million of capital investments incurred by WES.(2) Anadarko also closed transactions to monetize more than $2.5 billion of assets in 2014, including the $1.1 billion divestment of its China subsidiary,
the $500 million sale of its non-operated interest in the Vito Gulf of Mexico development, the $442 million Eaglebine carried-interest agreement, and most recently the $120 million divestiture of non-core assets in the Midland Basin. This total does not include the previously announced $2.64 billion Mozambique sell-down and $581 million Pinedale/Jonah divestiture. At year-end 2014, Anadarko’s net debt to adjusted capitalization ratio was approximately 26 percent.(2)
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Tuesday, Feb. 3, 2015, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2014 results. The dial-in number is 855.812.0464 in the U.S., or 970.300.2271 internationally. The confirmation number is 54428059. 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
Nine pages of summary financial data follow, including costs incurred, proved reserves and current hedge positions.
(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) See the accompanying table for a reconciliation of “divestiture-adjusted” or “same-store” sales volumes, which are intended to present performance of Anadarko’s continuing asset base, giving effect to recent divestitures.
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 2014, the company had approximately 2.86 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.
Logo – http://photos.prnewswire.com/prnh/20141103/156201LOGO
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 in this challenging economic environment, finalize year-end reserves, timely complete and commercially operate the projects and drilling prospects identified in this news release, successfullyplan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park and achieve production and budget expectations on its mega projects. See “Risk Factors” in the company’s 2013 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
Christina Ramirez, christina.ramirez@anadarko.com, 832.636.8687
INVESTORS:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Jeremy Smith, jeremy.smith@anadarko.com, 832.636.1544
|
Anadarko Petroleum Corporation |
||||||||||||
|
Certain Items Affecting Comparability |
||||||||||||
|
Quarter Ended December 31, 2014 |
||||||||||||
|
Before |
After |
Per Share |
||||||||||
|
millions except per-share amounts |
Tax |
Tax |
(diluted) |
|||||||||
|
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
(254) |
$ |
(162) |
$ |
(0.32) |
||||||
|
Gains (losses) on divestitures, net |
(303) |
(192) |
(0.38) |
|||||||||
|
Impairments, including unproved properties |
(548) |
(346) |
(0.68) |
|||||||||
|
Inventory impairments |
(60) |
(38) |
(0.07) |
|||||||||
|
Cash received in early settlement of oil derivatives |
126 |
80 |
0.16 |
|||||||||
|
Litigation settlement |
50 |
32 |
0.06 |
|||||||||
|
Interest expense related to Tronox settlement |
(22) |
(14) |
(0.03) |
|||||||||
|
Change in uncertain tax positions (FIN 48) |
— |
58 |
0.11 |
|||||||||
|
$ |
(1,011) |
$ |
(582) |
$ |
(1.15) |
|||||||
|
* For the quarter ended December 31, 2014, this includes $40 million related to commodity derivatives, $(293) million related to other derivatives, and $(1) million related to gathering, processing, and marketing sales. |
|
Quarter Ended December 31, 2013 |
||||||||||||
|
Before |
After |
Per Share |
||||||||||
|
millions except per-share amounts |
Tax |
Tax |
(diluted) |
|||||||||
|
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
(52) |
$ |
(34) |
$ |
(0.07) |
||||||
|
Gains (losses) on divestitures, net |
(635) |
(402) |
(0.80) |
|||||||||
|
Impairments |
(162) |
(103) |
(0.21) |
|||||||||
|
Third-party property well and platform decommissioning obligation |
(35) |
(22) |
(0.04) |
|||||||||
|
Tronox-related contingent loss |
(850) |
(576) |
(1.14) |
|||||||||
|
Change in uncertain tax positions (FIN 48) |
— |
(6) |
(0.01) |
|||||||||
|
$ |
(1,734) |
$ |
(1,143) |
$ |
(2.27) |
|||||||
|
* For the quarter ended December 31, 2013, this includes $(155) million related to commodity derivatives, $111 million related to other derivatives, and $(8) million related to gathering, processing, and marketing sales. |
|
Reconciliation of GAAP to Non-GAAP Measures |
|
Below are reconciliations of net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP), cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), as well as free cash flow (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses adjusted net income (loss) to evaluate the Company’s operational trends and performance. |
|
Quarter Ended |
Quarter Ended |
||||||||||||||
|
December 31, 2014 |
December 31, 2013 |
||||||||||||||
|
After |
Per Share |
After |
Per Share |
||||||||||||
|
millions except per-share amounts |
Tax |
(diluted) |
Tax |
(diluted) |
|||||||||||
|
Net income (loss) attributable to common stockholders |
$ |
(395) |
$ |
(0.78) |
$ |
(770) |
$ |
(1.53) |
|||||||
|
Less certain items affecting comparability |
(582) |
(1.15) |
(1,143) |
(2.27) |
|||||||||||
|
Adjusted net income (loss) |
$ |
187 |
$ |
0.37 |
$ |
373 |
$ |
0.74 |
|||||||
|
Anadarko Petroleum Corporation
|
|
Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes certain fluctuations in assets and liabilities and current taxes related to certain items affecting comparability. Management uses free cash flow to demonstrate the Company’s ability to internally fund capital expenditures and to service or incur additional debt. |
|
Quarter Ended |
Year Ended |
||||||||||||||
|
December 31, |
December 31, |
||||||||||||||
|
millions |
2014 |
2013 |
2014 |
2013 |
|||||||||||
|
Net cash provided by operating activities |
$ |
1,952 |
$ |
2,104 |
$ |
8,466 |
$ |
8,888 |
|||||||
|
Add back |
|||||||||||||||
|
Algeria exceptional profits tax settlement |
— |
— |
— |
(730) |
|||||||||||
|
Increase (decrease) in accounts receivable |
1 |
257 |
(103) |
11 |
|||||||||||
|
(Increase) decrease in accounts payable and accrued expenses |
703 |
(187) |
(7) |
(150) |
|||||||||||
|
Other items—net |
(153) |
(168) |
81 |
(146) |
|||||||||||
|
Certain nonoperating and other excluded items |
4 |
43 |
29 |
160 |
|||||||||||
|
Current taxes related to asset monetizations |
(95) |
— |
938 |
— |
|||||||||||
|
Discretionary cash flow from operations |
$ |
2,412 |
$ |
2,049 |
$ |
9,404 |
$ |
8,033 |
|||||||
|
Quarter Ended |
Year Ended |
||||||||||||||
|
December 31, |
December 31, |
||||||||||||||
|
millions |
2014 |
2013 |
2014 |
2013 |
|||||||||||
|
Discretionary cash flow from operations |
$ |
2,412 |
$ |
2,049 |
$ |
9,404 |
$ |
8,033 |
|||||||
|
Less capital expenditures* |
2,169 |
2,612 |
9,256 |
8,523 |
|||||||||||
|
Free cash flow |
$ |
243 |
$ |
(563) |
$ |
148 |
$ |
(490) |
|||||||
|
* |
Includes Western Gas Partners, LP (WES) capital expenditures of $206 million for the quarter ended December 31, 2014, $170 million for the quarter ended December 31, 2013, $696 million for the year ended December 31, 2014, and $792 million for the year ended December 31, 2013. |
|
Anadarko Petroleum Corporation |
|||||||||
|
Presented below are reconciliations of costs incurred (GAAP) to oil and natural gas exploration and development costs (non-GAAP) and total debt (GAAP) to net debt (non-GAAP). 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. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. |
|
Year Ended |
|||||||||
|
December 31, |
|||||||||
|
millions |
2014 |
||||||||
|
Costs incurred |
$ |
8,712 |
|||||||
|
Asset retirement obligation liabilities incurred |
(347) |
||||||||
|
Cash expenditures for asset retirement obligations |
443 |
||||||||
|
Oil and natural gas exploration and development costs |
$ |
8,808 |
|||||||
|
December 31, 2014 |
|||||||||||||||||||||
|
Anadarko |
|||||||||||||||||||||
|
Anadarko |
WGP* |
excluding |
|||||||||||||||||||
|
millions |
Consolidated |
Consolidated |
WGP |
||||||||||||||||||
|
Total debt |
$ |
15,092 |
$ |
2,423 |
$ |
12,669 |
|||||||||||||||
|
Less cash and cash equivalents |
7,369 |
67 |
7,302 |
||||||||||||||||||
|
Net debt |
$ |
7,723 |
$ |
2,356 |
$ |
5,367 |
|||||||||||||||
|
Anadarko |
|||||||||||||||||||||
|
Anadarko |
excluding |
||||||||||||||||||||
|
millions |
Consolidated |
WGP |
|||||||||||||||||||
|
Net debt |
$ |
7,723 |
$ |
5,367 |
|||||||||||||||||
|
Total equity |
22,318 |
19,725 |
|||||||||||||||||||
|
Adjusted capitalization |
$ |
30,041 |
$ |
25,092 |
|||||||||||||||||
|
Net debt to adjusted capitalization ratio |
26 % |
21 % |
|||||||||||||||||||
|
* |
Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko and WES is a consolidated subsidiary of WGP. |
|
Anadarko Petroleum Corporation (Unaudited) |
|||||||||||||||
|
Quarter Ended |
Year Ended |
||||||||||||||
|
Summary Financial Information |
December 31, |
December 31, |
|||||||||||||
|
millions except per-share amounts |
2014 |
2013 |
2014 |
2013 |
|||||||||||
|
Consolidated Statements of Income |
|||||||||||||||
|
Revenues and Other |
|||||||||||||||
|
Natural-gas sales |
$ |
811 |
$ |
841 |
$ |
3,849 |
$ |
3,388 |
|||||||
|
Oil and condensate sales |
1,982 |
2,417 |
9,748 |
9,178 |
|||||||||||
|
Natural-gas liquids sales |
351 |
373 |
1,572 |
1,262 |
|||||||||||
|
Gathering, processing, and marketing sales |
278 |
289 |
1,206 |
1,039 |
|||||||||||
|
Gains (losses) on divestitures and other, net |
(245) |
(582) |
2,095 |
(286) |
|||||||||||
|
Total |
3,177 |
3,338 |
18,470 |
14,581 |
|||||||||||
|
Costs and Expenses |
|||||||||||||||
|
Oil and gas operating |
310 |
323 |
1,171 |
1,092 |
|||||||||||
|
Oil and gas transportation and other |
315 |
259 |
1,184 |
1,022 |
|||||||||||
|
Exploration |
639 |
615 |
1,639 |
1,329 |
|||||||||||
|
Gathering, processing, and marketing |
259 |
231 |
1,030 |
869 |
|||||||||||
|
General and administrative |
332 |
303 |
1,316 |
1,090 |
|||||||||||
|
Depreciation, depletion, and amortization |
1,215 |
969 |
4,550 |
3,927 |
|||||||||||
|
Other taxes |
263 |
258 |
1,244 |
1,077 |
|||||||||||
|
Impairments |
322 |
162 |
836 |
794 |
|||||||||||
|
Algeria exceptional profits tax settlement |
— |
— |
— |
33 |
|||||||||||
|
Deepwater Horizon settlement and related costs |
1 |
3 |
97 |
15 |
|||||||||||
|
Total |
3,656 |
3,123 |
13,067 |
11,248 |
|||||||||||
|
Operating Income (Loss) |
(479) |
215 |
5,403 |
3,333 |
|||||||||||
|
Other (Income) Expense |
|||||||||||||||
|
Interest expense |
199 |
173 |
772 |
686 |
|||||||||||
|
(Gains) losses on derivatives, net |
(256) |
(5) |
197 |
(398) |
|||||||||||
|
Other (income) expense, net |
8 |
20 |
20 |
89 |
|||||||||||
|
Tronox-related contingent loss |
22 |
850 |
4,360 |
850 |
|||||||||||
|
Total |
(27) |
1,038 |
5,349 |
1,227 |
|||||||||||
|
Income (Loss) Before Income Taxes |
(452) |
(823) |
54 |
2,106 |
|||||||||||
|
Income Tax Expense (Benefit) |
(102) |
(98) |
1,617 |
1,165 |
|||||||||||
|
Net Income (Loss) |
(350) |
(725) |
(1,563) |
941 |
|||||||||||
|
Net Income (Loss) Attributable to Noncontrolling Interests |
45 |
45 |
187 |
140 |
|||||||||||
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
(395) |
$ |
(770) |
$ |
(1,750) |
$ |
801 |
|||||||
|
Per Common Share |
|||||||||||||||
|
Net income (loss) attributable to common stockholders—basic |
$ |
(0.78) |
$ |
(1.53) |
$ |
(3.47) |
$ |
1.58 |
|||||||
|
Net income (loss) attributable to common stockholders—diluted |
$ |
(0.78) |
$ |
(1.53) |
$ |
(3.47) |
$ |
1.58 |
|||||||
|
Average Number of Common Shares Outstanding—Basic |
507 |
504 |
506 |
502 |
|||||||||||
|
Average Number of Common Shares Outstanding—Diluted |
507 |
504 |
506 |
505 |
|||||||||||
|
Exploration Expense |
|||||||||||||||
|
Dry hole expense |
$ |
235 |
$ |
255 |
$ |
762 |
$ |
556 |
|||||||
|
Impairments of unproved properties |
267 |
186 |
483 |
308 |
|||||||||||
|
Geological and geophysical expense |
75 |
97 |
168 |
208 |
|||||||||||
|
Exploration overhead and other |
62 |
77 |
226 |
257 |
|||||||||||
|
Total |
$ |
639 |
$ |
615 |
$ |
1,639 |
$ |
1,329 |
|||||||
|
Anadarko Petroleum Corporation (Unaudited) |
|||||||||||||||
|
Quarter Ended |
Year Ended |
||||||||||||||
|
Summary Financial Information |
December 31, |
December 31, |
|||||||||||||
|
millions |
2014 |
2013 |
2014 |
2013 |
|||||||||||
|
Cash Flows from Operating Activities |
|||||||||||||||
|
Net income (loss) |
$ |
(350) |
$ |
(725) |
$ |
(1,563) |
$ |
941 |
|||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|||||||||||||||
|
Depreciation, depletion, and amortization |
1,215 |
969 |
4,550 |
3,927 |
|||||||||||
|
Deferred income taxes |
115 |
(445) |
(95) |
90 |
|||||||||||
|
Dry hole expense and impairments of unproved properties |
502 |
441 |
1,245 |
864 |
|||||||||||
|
Impairments |
322 |
162 |
836 |
794 |
|||||||||||
|
(Gains) losses on divestitures, net |
303 |
635 |
(1,891) |
470 |
|||||||||||
|
Total (gains) losses on derivatives, net |
(255) |
4 |
207 |
(392) |
|||||||||||
|
Operating portion of net cash received (paid) in settlement of derivative instruments |
509 |
48 |
371 |
85 |
|||||||||||
|
Other |
123 |
72 |
327 |
246 |
|||||||||||
|
Changes in assets and liabilities |
|||||||||||||||
|
Deepwater Horizon settlement and related costs |
(3) |
(5) |
90 |
(2) |
|||||||||||
|
Algeria exceptional profits tax settlement |
— |
— |
— |
730 |
|||||||||||
|
Tronox-related contingent loss |
22 |
850 |
4,360 |
850 |
|||||||||||
|
(Increase) decrease in accounts receivable |
(1) |
(257) |
103 |
(11) |
|||||||||||
|
Increase (decrease) in accounts payable and accrued expenses |
(703) |
187 |
7 |
150 |
|||||||||||
|
Other items—net |
153 |
168 |
(81) |
146 |
|||||||||||
|
Net Cash Provided by Operating Activities |
$ |
1,952 |
$ |
2,104 |
$ |
8,466 |
$ |
8,888 |
|||||||
|
Capital Expenditures |
$ |
2,169 |
$ |
2,612 |
$ |
9,256 |
$ |
8,523 |
|||||||
|
December 31, |
December 31, |
||||||||||||||
|
millions |
2014 |
2013 |
|||||||||||||
|
Condensed Balance Sheets |
|||||||||||||||
|
Cash and cash equivalents |
$ |
7,369 |
$ |
3,698 |
|||||||||||
|
Accounts receivable, net of allowance |
2,537 |
2,722 |
|||||||||||||
|
Other current assets |
1,325 |
688 |
|||||||||||||
|
Net properties and equipment |
41,552 |
40,929 |
|||||||||||||
|
Other assets |
2,310 |
2,082 |
|||||||||||||
|
Goodwill and other intangible assets |
6,606 |
5,662 |
|||||||||||||
|
Total Assets |
$ |
61,699 |
$ |
55,781 |
|||||||||||
|
Other current liabilities |
4,934 |
5,703 |
|||||||||||||
|
Deepwater Horizon settlement and related costs |
90 |
— |
|||||||||||||
|
Tronox-related contingent liability |
5,210 |
— |
|||||||||||||
|
Long-term debt |
15,092 |
13,065 |
|||||||||||||
|
Deferred income taxes |
9,259 |
9,245 |
|||||||||||||
|
Other long-term liabilities |
4,796 |
4,118 |
|||||||||||||
|
Stockholders’ equity |
19,725 |
21,857 |
|||||||||||||
|
Noncontrolling interests |
2,593 |
1,793 |
|||||||||||||
|
Total Equity |
$ |
22,318 |
$ |
23,650 |
|||||||||||
|
Total Liabilities and Equity |
$ |
61,699 |
$ |
55,781 |
|||||||||||
|
Capitalization |
|||||||||||||||
|
Total debt |
$ |
15,092 |
$ |
13,565 |
|||||||||||
|
Total equity |
22,318 |
23,650 |
|||||||||||||
|
Total |
$ |
37,410 |
$ |
37,215 |
|||||||||||
|
Capitalization Ratios |
|||||||||||||||
|
Total debt |
40 % |
36% |
|||||||||||||
|
Total equity |
60 % |
64% |
|||||||||||||
|
Anadarko Petroleum Corporation (Unaudited) |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales Volumes and Prices |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Average Daily Sales Volumes |
Sales Volumes |
Average Sales Price |
||||||||||||||||||||||||||||||||||||||||||||||||
|
Natural Gas |
Crude Oil & Condensate |
NGLs |
Natural Gas |
Crude Oil & Condensate |
NGLs |
Natural Gas |
Crude Oil & Condensate |
NGLs |
||||||||||||||||||||||||||||||||||||||||||
|
MMcf/d |
MBbls/d |
MBbls/d |
Bcf |
MMBbls |
MMBbls |
Per Mcf |
Per Bbl |
Per Bbl |
||||||||||||||||||||||||||||||||||||||||||
|
Quarter Ended December 31, 2014 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
United States |
2,549 |
220 |
119 |
234 |
20 |
12 |
$ |
3.46 |
$ |
68.66 |
$ |
27.57 |
||||||||||||||||||||||||||||||||||||||
|
Algeria |
— |
70 |
10 |
— |
6 |
1 |
— |
79.80 |
54.02 |
|||||||||||||||||||||||||||||||||||||||||
|
Other International |
— |
10 |
— |
— |
1 |
— |
— |
81.64 |
— |
|||||||||||||||||||||||||||||||||||||||||
|
Total |
2,549 |
300 |
129 |
234 |
27 |
13 |
$ |
3.46 |
$ |
71.67 |
$ |
29.63 |
||||||||||||||||||||||||||||||||||||||
|
Quarter Ended December 31, 2013 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
United States |
2,643 |
167 |
100 |
243 |
16 |
9 |
$ |
3.46 |
$ |
93.01 |
$ |
40.30 |
||||||||||||||||||||||||||||||||||||||
|
Algeria |
— |
62 |
— |
— |
6 |
— |
— |
109.18 |
— |
|||||||||||||||||||||||||||||||||||||||||
|
Other International |
— |
36 |
— |
— |
3 |
— |
— |
110.56 |
— |
|||||||||||||||||||||||||||||||||||||||||
|
Total |
2,643 |
265 |
100 |
243 |
25 |
9 |
$ |
3.46 |
$ |
99.20 |
$ |
40.30 |
||||||||||||||||||||||||||||||||||||||
|
Year Ended December 31, 2014 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
United States |
2,589 |
203 |
116 |
945 |
74 |
43 |
$ |
4.07 |
$ |
87.99 |
$ |
35.48 |
||||||||||||||||||||||||||||||||||||||
|
Algeria |
— |
66 |
3 |
— |
24 |
1 |
— |
98.53 |
56.16 |
|||||||||||||||||||||||||||||||||||||||||
|
Other International |
— |
23 |
— |
— |
8 |
— |
— |
103.42 |
— |
|||||||||||||||||||||||||||||||||||||||||
|
Total |
2,589 |
292 |
119 |
945 |
106 |
44 |
$ |
4.07 |
$ |
91.58 |
$ |
36.01 |
||||||||||||||||||||||||||||||||||||||
|
Year Ended December 31, 2013 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
United States |
2,652 |
158 |
91 |
968 |
58 |
33 |
$ |
3.50 |
$ |
97.02 |
$ |
37.97 |
||||||||||||||||||||||||||||||||||||||
|
Algeria |
— |
55 |
— |
— |
20 |
— |
— |
109.20 |
— |
|||||||||||||||||||||||||||||||||||||||||
|
Other International |
— |
35 |
— |
— |
13 |
— |
— |
109.07 |
— |
|||||||||||||||||||||||||||||||||||||||||
|
Total |
2,652 |
248 |
91 |
968 |
91 |
33 |
$ |
3.50 |
$ |
101.41 |
$ |
37.97 |
||||||||||||||||||||||||||||||||||||||
|
Average Daily Sales Volumes MBOE/d |
Sales Volumes MMBOE |
||||||||||
|
Quarter Ended December 31, 2014 |
854 |
79 |
|||||||||
|
Quarter Ended December 31, 2013 |
806 |
74 |
|||||||||
|
Year Ended December 31, 2014 |
843 |
308 |
|||||||||
|
Year Ended December 31, 2013 |
781 |
285 |
|||||||||
|
Sales Revenue and Commodity Derivatives |
||||||||||||||||||||||||
|
Sales |
Net Cash Received (Paid) from Settlement of Commodity Derivatives |
|||||||||||||||||||||||
|
Crude Oil & |
Crude Oil & |
|||||||||||||||||||||||
|
millions |
Natural Gas |
Condensate |
NGLs |
Natural Gas |
Condensate |
NGLs |
||||||||||||||||||
|
Quarter Ended December 31, 2014 |
||||||||||||||||||||||||
|
United States |
$ |
811 |
$ |
1,394 |
$ |
301 |
$ |
22 |
$ |
149 |
$ |
3 |
||||||||||||
|
Algeria |
— |
514 |
50 |
— |
335 |
— |
||||||||||||||||||
|
Other International |
— |
74 |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
811 |
$ |
1,982 |
$ |
351 |
$ |
22 |
$ |
484 |
$ |
3 |
||||||||||||
|
Quarter Ended December 31, 2013 |
||||||||||||||||||||||||
|
United States |
$ |
841 |
$ |
1,426 |
$ |
373 |
$ |
42 |
$ |
8 |
$ |
2 |
||||||||||||
|
Algeria |
— |
618 |
— |
— |
(3) |
— |
||||||||||||||||||
|
Other International |
— |
373 |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
841 |
$ |
2,417 |
$ |
373 |
$ |
42 |
$ |
5 |
$ |
2 |
||||||||||||
|
Year Ended December 31, 2014 |
||||||||||||||||||||||||
|
United States |
$ |
3,849 |
$ |
6,519 |
$ |
1,509 |
$ |
(85) |
$ |
81 |
$ |
6 |
||||||||||||
|
Algeria |
— |
2,372 |
63 |
— |
375 |
— |
||||||||||||||||||
|
Other International |
— |
857 |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
3,849 |
$ |
9,748 |
$ |
1,572 |
$ |
(85) |
$ |
456 |
$ |
6 |
||||||||||||
|
Year Ended December 31, 2013 |
||||||||||||||||||||||||
|
United States |
$ |
3,388 |
$ |
5,601 |
$ |
1,262 |
$ |
133 |
$ |
(53) |
$ |
9 |
||||||||||||
|
Algeria |
— |
2,184 |
— |
— |
6 |
— |
||||||||||||||||||
|
Other International |
— |
1,393 |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
3,388 |
$ |
9,178 |
$ |
1,262 |
$ |
133 |
$ |
(47) |
$ |
9 |
||||||||||||
|
Anadarko Petroleum Corporation |
|||||||||
|
Estimated Year-End Proved Reserves 2012 – 2014 |
|||||||||
|
MMBOE |
2014 |
2013 |
2012 |
||||||
|
Proved Reserves |
|||||||||
|
Beginning of year |
2,792 |
2,560 |
2,539 |
||||||
|
Reserves additions and revisions |
|||||||||
|
Discoveries and extensions |
63 |
145 |
82 |
||||||
|
Infill-drilling additions |
577 |
410 |
383 |
||||||
|
Drilling-related reserves additions and revisions |
640 |
555 |
465 |
||||||
|
Other non-price-related revisions |
(137) |
(40) |
(31) |
||||||
|
Net organic reserves additions |
503 |
515 |
434 |
||||||
|
Acquisition of proved reserves in place |
— |
36 |
4 |
||||||
|
Price-related revisions |
(1) |
(23) |
(68) |
||||||
|
Total reserves additions and revisions |
502 |
528 |
370 |
||||||
|
Sales in place |
(124) |
(12) |
(81) |
||||||
|
Production |
(312) |
(284) |
(268) |
||||||
|
End of year |
2,858 |
2,792 |
2,560 |
||||||
|
Proved Developed Reserves |
|||||||||
|
Beginning of year |
2,003 |
1,883 |
1,811 |
||||||
|
End of year |
1,969 |
2,003 |
1,883 |
||||||
|
Anadarko Petroleum Corporation |
|||||||||||||||||
|
Commodity Hedge Positions |
|||||||||||||||||
|
As of February 2, 2015 |
|||||||||||||||||
|
Volume |
Weighted Average Price per MMBtu |
||||||||||||||||
|
(thousand |
|||||||||||||||||
|
MMBtu/d) |
Floor Sold |
Floor Purchased |
Ceiling Sold |
||||||||||||||
|
Natural Gas |
|||||||||||||||||
|
Three-Way Collars |
|||||||||||||||||
|
2015 |
635 |
$ |
2.75 |
$ |
3.75 |
$ |
4.76 |
||||||||||
|
Extendable Fixed Price – Financial |
|||||||||||||||||
|
2015* |
170 |
$ |
4.17 |
||||||||||||||
__________________________________________________________________
|
* |
Includes an option for the counterparty to extend the contract term to December 2016 at the same price. |
|
Interest Rate Derivatives |
|||||||
|
As of February 2, 2015 |
|||||||
|
Instrument |
Notional Amt. |
Start Date |
Maturity |
Rate Paid |
Rate Received |
||
|
Swap |
$50 Million |
Sept. 2016 |
Sept. 2026 |
5.91% |
3M LIBOR |
||
|
Swap |
$1,850 Million |
Sept. 2016 |
Sept. 2046 |
6.05% |
3M LIBOR |
||
|
Anadarko Petroleum Corporation Reconciliation of Same-Store Sales |
|||||||||||||||||||||||
|
Average Daily Sales Volumes |
|||||||||||||||||||||||
|
Quarter Ended December 31, 2014 |
Quarter Ended December 31, 2013 |
||||||||||||||||||||||
|
Crude Oil & |
Crude Oil & |
||||||||||||||||||||||
|
Natural Gas |
Condensate |
NGLs |
Total |
Natural Gas |
Condensate |
NGLs |
Total |
||||||||||||||||
|
MMcf/d |
MBbls/d |
MBbls/d |
MBOE/d |
MMcf/d |
MBbls/d |
MBbls/d |
MBOE/d |
||||||||||||||||
|
U.S. Onshore |
2,370 |
165 |
113 |
673 |
2,353 |
108 |
90 |
590 |
|||||||||||||||
|
Deepwater Gulf of Mexico |
179 |
47 |
6 |
83 |
208 |
47 |
6 |
88 |
|||||||||||||||
|
International and Alaska |
— |
88 |
10 |
98 |
1 |
101 |
— |
101 |
|||||||||||||||
|
Same-Store Sales |
2,549 |
300 |
129 |
854 |
2,562 |
256 |
96 |
779 |
|||||||||||||||
|
China and Pinedale/Jonah |
— |
— |
— |
— |
81 |
9 |
4 |
27 |
|||||||||||||||
|
Total |
2,549 |
300 |
129 |
854 |
2,643 |
265 |
100 |
806 |
|||||||||||||||
|
Year Ended December 31, 2014 |
Year Ended December 31, 2013 |
||||||||||||||||||||||
|
Crude Oil & |
Crude Oil & |
||||||||||||||||||||||
|
Natural Gas |
Condensate |
NGLs |
Total |
Natural Gas |
Condensate |
NGLs |
Total |
||||||||||||||||
|
MMcf/d |
MBbls/d |
MBbls/d |
MBOE/d |
MMcf/d |
MBbls/d |
MBbls/d |
MBOE/d |
||||||||||||||||
|
U.S. Onshore |
2,387 |
149 |
111 |
658 |
2,304 |
100 |
82 |
566 |
|||||||||||||||
|
Deepwater Gulf of Mexico |
196 |
45 |
5 |
83 |
263 |
46 |
6 |
96 |
|||||||||||||||
|
International and Alaska |
— |
94 |
3 |
97 |
— |
90 |
— |
90 |
|||||||||||||||
|
Same-Store Sales |
2,583 |
288 |
119 |
838 |
2,567 |
236 |
88 |
752 |
|||||||||||||||
|
China and Pinedale/Jonah |
6 |
4 |
— |
5 |
85 |
12 |
3 |
29 |
|||||||||||||||
|
Total |
2,589 |
292 |
119 |
843 |
2,652 |
248 |
91 |
781 |
|||||||||||||||
