Anadarko will present at EnerCom’s The Oil & Gas Conference® 21 on Tues. Aug. 16, 2016 at 4:45 pm EST.
Anadarko Petroleum (ticker: APC) is an exploration and production company headquartered in The Woodlands, Texas. Anadarko has operations in the United States, Gulf of Mexico, Africa, South America, and New Zealand. As of December 31, 2015, the company had approximately 2.1 BBOE of proved reserves. In Q1 2016, the company’s sales volumes totaled 75 million BOE.
Anadarko Operations and Assets
Anadarko’s 2016 capital budget is primarily focused on the Delaware Basin and the DJ Basin. In Q1 2016, Anadarko drilled 26 wells in the DJ Basin and operated an average of two rigs. Wattenberg field sales volumes increased by approximately 11% year over year and drilling costs continued to improve on a cost-per-foot basis to less than $68 per-foot for short laterals, representing a 30% decline since Q1 2015.
In Q1 2016, the company operated an average of six rigs in the Delaware Basin, spudding 23 wells. The Delaware Basin activity was focused on delineating stacked pay potential, resulting in an increase to its net recoverable resource estimate in the basin to more than 2 billion Boe (BBoe) from its previous estimate of more than 1 BBoe.
In Q1 2016, Anadarko drilled its longest Wolfcamp lateral to date of almost 11,000 feet. In Q1, the company also drilled its first successful deepwater horizontal well offshore Côte d’Ivoire, encountering almost 100 net feet of pay.
As of May 2, 2016, Anadarko had closed on monetizations of various assets for more than $1.3 billion for the year. As of May 2, the company was also working towards monetizing an additional $700 million. The company has projected a target of $3.5 billion is monetizations during 2016. Additional information about Anadarko’s operations can be found here in the Q1 2016 operations report.
Anadarko has reduced its 2016 capital budget by almost 50% compared to 2015, which the company expects will produce volumes that are roughly flat year over year.
Financial Overview
Anadarko realized a net loss in Q1 2016 of $1.03 billion ($2.03 per share). Net operating cash flow in Q1 2016 was -$137 million. Anadarko cut its dividend 81%, which the company believes will save $450 million per year. The company also issued $3 billion of fixed income securities in Q1 2016, which was used to refinance debt due in 2016 and part of the company’s debt for 2017. Anadarko engaged in workforce reduction in Q1 to further lower costs.
EnerCom’s The Oil & Gas Conference® Denver – August 14-18, 2016
Anadarko Petroleum (ticker: APC) will be presenting at EnerCom’s The Oil & Gas Conference® 21 in Denver on Tuesday, August 16, 2016 at 4:45 pm EST. Conference information and registration for this year’s EnerCom conference may be accessed here.
