July 26, 2019 - 4:10 PM EDT
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Anadarko Announces 2019 Second-Quarter Results

HOUSTON, July 26, 2019 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2019 second‑quarter results, reporting a net loss attributable to common stockholders of $1.025 billion, or $2.09 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by $1.274 billion, or $2.60 per share (diluted), on an after-tax basis,(1) which includes the Chevron merger termination fee and other merger transaction costs of $1.042 billion. Net cash provided by operating activities totaled $776 million for the quarter.

SECOND-QUARTER 2019 OPERATIONAL HIGHLIGHTS
Anadarko's second-quarter 2019 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 68 million barrels of oil equivalent (BOE), or an average of 744,000 BOE per day, which included 434,000 barrels of oil per day (BOPD).

Anadarko's U.S. onshore assets averaged sales volume of 484,000 BOE per day during the second quarter of 2019, which included 207,000 BOPD. Anadarko's Gulf of Mexico averaged 158,000 BOE per day in the quarter, which included 130,000 BOPD. Internationally, the company averaged 102,000 BOE per day during the second quarter, which included 97,000 BOPD.

On June 18, 2019, Anadarko and the co-venturers in Mozambique's Offshore Area 1 announced a Final Investment Decision (FID), officially confirming the Mozambique LNG project is advancing to the construction phase. The Anadarko-led Area 1 Mozambique LNG project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 million tonnes per annum to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

FINANCIAL DATA
Eight pages of summary financial data follow, including 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.

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 successfully plan, finance, build, and operate the necessary infrastructure and LNG park in Mozambique. See "Risk Factors" in the company's 2018 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, [email protected], 832.636.3271
Kyle Deakins, [email protected], 832.636.2354
Jon VandenBrand, [email protected], 832.636.1007

MEDIA:
John Christiansen, [email protected], 832.636.8736
Stephanie Moreland, [email protected], 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 June 30, 2019



Before


After


Per Share

millions except per-share amounts


Tax


Tax


(diluted)

Net income (loss) attributable to common stockholders (GAAP)




$

(1,025)



$

(2.09)


Adjustments for certain items affecting comparability







Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives (after noncontrolling interest)*


$

(227)



(175)



(0.36)


Gains (losses) on divestitures, net


6



5



0.01


Lower-of-cost-or-market inventory adjustments


(6)



(5)



(0.01)


Merger transaction costs


(1,042)



(1,042)



(2.12)


Exploration assets - impairments


(38)



(29)



(0.06)


Reorganization-related charges


(15)



(11)



(0.02)


Change in uncertain tax positions




(17)



(0.04)


Certain items affecting comparability


$

(1,322)



(1,274)



(2.60)


Adjusted net income (loss) (Non-GAAP)




$

249



$

0.51



*

Includes $(232) million related to interest-rate derivatives (after noncontrolling interest) and $5 million related to commodity derivatives.

 



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.

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
June 30,


Six Months Ended
June 30,

millions

2019


2018


2019


2018

Net income (loss) attributable to common stockholders (GAAP)

$

(1,025)



$

29



$

(1,040)



$

150


Interest expense

249



237



502



465


Income tax expense (benefit)

209



125



375



251


Depreciation, depletion, and amortization

1,161



1,003



2,242



1,993


Exploration expense*

90



94



139



262


(Gains) losses on divestitures, net

(6)



(52)



(1)



(28)


Impairments



128





147


Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives

255



267



571



240


Reorganization-related charges

15





33




Merger transaction costs

1,042





1,042




Consolidated Adjusted EBITDAX (Margin) (Non-GAAP)

$

1,990



$

1,831



$

3,863



$

3,480


Total barrels of oil equivalent (MMBOE)

68



58



132



116


Consolidated Adjusted EBITDAX (Margin) per BOE

$

29.26



$

31.57



$

29.27



$

30.00



Includes reorganization-related charges of $1 million for the six months ended June 30, 2019.

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 WES is useful because WES is a separate public company with its own capital structure.




June 30, 2019








Anadarko




Anadarko


WES*


excluding

millions



Consolidated


Consolidated


WES

Total debt (GAAP)



$

18,229



$

7,489



$

10,740


Less cash and cash equivalents



1,394



96



1,298


Net debt (Non-GAAP)



$

16,835



$

7,393



$

9,442

















Anadarko






Anadarko


excluding

millions





Consolidated


WES

Net debt





$

16,835



$

9,442


Total equity





9,331



7,773


Adjusted capitalization





$

26,166



$

17,215














Net debt to adjusted capitalization ratio






64

%



55

%



*

Western Midstream Partners, LP (WES) is a publicly traded consolidated subsidiary of Anadarko.

 

Anadarko Petroleum Corporation

Cash Flow Information

(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,

millions

2019


2018


2019


2018

Cash Flows from Operating Activities








Net income (loss)

$

(945)



$

17



$

(849)



$

191


Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities








Depreciation, depletion, and amortization

1,161



1,003



2,242



1,993


Deferred income taxes

(55)



(15)



(54)



27


Dry hole expense and impairments of unproved properties

41



43



41



149


Impairments



128





147


(Gains) losses on divestitures, net

(6)



(52)



(1)



(28)


Total (gains) losses on derivatives, net

254



437



569



473


Operating portion of net cash received (paid) in settlement of derivative instruments

1



(171)



2



(234)


Other

70



65



112



139


Changes in assets and liabilities

255



(230)



(157)



(202)


Net Cash Provided by (Used in) Operating Activities

$

776



$

1,225



$

1,905



$

2,655


Net Cash Provided by (Used in) Investing Activities

$

(1,257)



$

(1,943)



$

(2,785)



$

(3,056)


Net Cash Provided by (Used in) Financing Activities

$

(149)



$

(319)



$

980



$

(1,826)


 

Anadarko Petroleum Corporation

(Unaudited)



Three Months Ended


Six Months Ended

Summary Financial Information

June 30,


June 30,

millions except per-share amounts

2019


2018


2019


2018

Consolidated Statements of Income








Revenues and Other








Oil sales

$

2,470



$

2,265



$

4,566



$

4,392


Natural-gas sales

205



203



525



450


Natural-gas liquids sales

216



318



456



610


Gathering, processing, and marketing sales

465



382



935



742


Gains (losses) on divestitures and other, net

86



123



178



142


Total

3,442



3,291



6,660



6,336


Costs and Expenses








Oil and gas operating

310



275



599



551


Oil and gas transportation

222



209



444



405


Exploration

90



94



139



262


Gathering, processing, and marketing

274



252



530



489


General and administrative

368



288



635



566


Merger transaction costs

1,042





1,042




Depreciation, depletion, and amortization

1,161



1,003



2,242



1,993


Production, property, and other taxes

182



201



381



391


Impairments



128





147


Other operating expense

8



22



29



162


Total

3,657



2,472



6,041



4,966


Operating Income (Loss)

(215)



819



619



1,370


Other (Income) Expense








Interest expense

249



237



502



465


(Gains) losses on derivatives, net

254



436



567



471


Other (income) expense, net

18



4



24



(8)


Total

521



677



1,093



928


Income (Loss) Before Income Taxes

(736)



142



(474)



442


Income tax expense (benefit)

209



125



375



251


Net Income (Loss)

(945)



17



(849)



191


Net income (loss) attributable to noncontrolling interests

80



(12)



191



41


Net Income (Loss) Attributable to Common Stockholders

$

(1,025)



$

29



$

(1,040)



$

150


Per Common Share








Net income (loss) attributable to common stockholders—basic

$

(2.09)



$

0.05



$

(2.13)



$

0.28


Net income (loss) attributable to common stockholders—diluted

$

(2.09)



$

0.05



$

(2.13)



$

0.28


Average Number of Common Shares Outstanding—Basic

491



504



491



511


Average Number of Common Shares Outstanding—Diluted

491



505



491



512










Exploration Expense








Dry hole expense

$

3



$

2



$

3



$

55


Impairments of unproved properties

38



41



38



94


Geological and geophysical, exploration overhead, and other expense

49



51



98



113


Total

$

90



$

94



$

139



$

262


 

Anadarko Petroleum Corporation

(Unaudited)



June 30,


December 31,

millions

2019


2018

Condensed Balance Sheets




Cash and cash equivalents

$

1,394



$

1,295


Accounts receivable, net of allowance

1,779



2,026


Other current assets

298



474


Net properties and equipment

29,091



28,615


Other assets

2,953



2,336


Goodwill and other intangible assets

5,614



5,630


Total Assets

$

41,129



$

40,376


Short-term debt - Anadarko*

31



919


Short-term debt - WES



28


Other current liabilities

3,761



3,711


Long-term debt - Anadarko*

10,709



10,683


Long-term debt - WES

7,489



4,787


Deferred income taxes

2,555



2,437


Asset retirement obligations

2,879



2,847


Other long-term liabilities

4,374



4,021


Common stock

58



57


Paid-in capital

13,135



12,393


Retained earnings

(149)



1,245


Treasury stock

(4,892)



(4,864)


Accumulated other comprehensive income (loss)

(379)



(335)


Total stockholders' equity

7,773



8,496


Noncontrolling interests

1,558



2,447


Total Equity

9,331



10,943


Total Liabilities and Equity

$

41,129



$

40,376


Capitalization




Total debt

$

18,229



$

16,417


Total equity

9,331



10,943


Total

$

27,560



$

27,360










Capitalization Ratios






Total debt


66

%



60

%

Total equity


34

%



40

%


*    Excludes WES

 

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 June 30, 2019


















United States

337



1,167



110



32



106



9



$

60.60



$

1.93



$

19.96


Algeria

60





5



5





1



67.60





35.83


Other International

37







3







71.01






Total

434



1,167



115



40



106



10



$

62.45



$

1.93



$

20.63




















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




















Six Months Ended June 30, 2019


















United States

335



1,159



108



61



210



19



$

57.90



$

2.50



$

21.71


Algeria

60





5



11





1



64.57





35.39


Other International

28







5







69.01



0.65




Total

423



1,159



113



77



210



20



$

59.58



$

2.50



$

22.33




















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







































Average Daily Sales Volume

MBOE/d


Sales Volume

MMBOE





























Quarter Ended June 30, 2019

744


68











Quarter Ended June 30, 2018

637


58





























Six Months Ended June 30, 2019

729


132











Six Months Ended June 30, 2018

640


116





























 

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, 2019













United States

$

1,862



$

205



$

200




$



$



$


Algeria

372





16









Other International

236













Total

$

2,470



$

205



$

216




$



$



$















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



$















Six Months Ended June 30, 2019











United States

$

3,516



$

525



$

423




$

6



$



$


Algeria

705





33









Other International

345













Total

$

4,566



$

525



$

456




$

6



$



$















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



$


 

Anadarko Petroleum Corporation

Commodity Hedge Positions

As of July 26, 2019
















Weighted Average Price per barrel




Volume

(MBbls/d)


Floor Sold


Floor Purchased


Ceiling Sold

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 July 26, 2019







Instrument

Notional Amt.

Reference Period

Mandatory

Termination Date

Rate Paid

Rate Received

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

$375 Million

December 2019 - 2024

December 2019

2.662%

3M LIBOR

Swap

$375 Million

December 2019 - 2029

December 2019

2.802%

3M LIBOR

Swap

$375 Million

December 2019 - 2049

December 2019

2.885%

3M LIBOR

 

Anadarko Petroleum Corporation

Reconciliation of Same-Store Sales


Average Daily Sales Volume


Quarter Ended June 30, 2019


Quarter Ended June 30, 2018


Oil

MBbls/d


Natural Gas

MMcf/d


NGLs

MBbls/d


Total

MBOE/d


Oil

MBbls/d


Natural Gas

MMcf/d


NGLs

MBbls/d


Total

MBOE/d

U.S. Onshore

207



1,073



98



484



169



969



86



417


Gulf of Mexico

130



93



12



158



114



66



9



134


International

97





5



102



80





5



85


Same-Store Sales

434



1,166



115



744



363



1,035



100



636


Divestitures



1







1



2





1


Total

434



1,167



115



744



364



1,037



100



637







Six Months Ended June 30, 2019


Six Months Ended June 30, 2018


Oil
MBbls/d


Natural Gas
MMcf/d


NGLs
MBbls/d


Total
MBOE/d


Oil
MBbls/d


Natural Gas
MMcf/d


NGLs
MBbls/d


Total
MBOE/d

U.S. Onshore

201



1,061



96



474



163



968



84



408


Gulf of Mexico

134



96



12



162



120



72



9



141


International

88





5



93



82





5



87


Same-Store Sales

423



1,157



113



729



365



1,040



98



636


Divestitures



2







3



4





4


Total

423



1,159



113



729



368



1,044



98



640


















 

Cision View original content:http://www.prnewswire.com/news-releases/anadarko-announces-2019-second-quarter-results-300891822.html

SOURCE Anadarko Petroleum Corporation


Source: PR Newswire (July 26, 2019 - 4:10 PM EDT)

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