NEWS
ANADARKO ANNOUNCES SECOND-QUARTER 2014 RESULTS
INCREASES MIDPOINT OF 2014 SALES-VOLUME GUIDANCE
BY 5 MILLION BOE
HOUSTON, July 29, 2014 - Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the second quarter of 2014, including net income attributable to common stockholders of $227 million, or $0.45 per share (diluted). These results include certain items typically excluded by the investment community in published estimates, which in the aggregate decreased net income by $442 million or $0.87 per share (diluted).(1) Cash flow from operating activities in the second quarter of 2014 was $2.462 billion, and discretionary cash flow totaled $2.434 billion.(2)
SECOND-QUARTER 2014 HIGHLIGHTS
| |
| • | Delivered record average daily sales volumes of 848,000 barrels of oil equivalent (BOE) per day, including a 50,000-barrels-per-day increase in oil sales volumes over the second quarter of 2013 from the U.S. onshore |
| |
| • | Achieved oil production milestones in Algeria and Ghana, and advanced the Gulf of Mexico Lucius project on schedule |
| |
| • | Reached a settlement agreement on the Tronox Adversary Proceeding |
| |
| • | Announced a 50-percent increase in the company’s quarterly dividend to 27 cents per share |
“Anadarko delivered exceptional operating performance during the second quarter, with an increase of 65,000 barrels of oil per day over the second quarter of 2013 led by our U.S. onshore assets and the El Merk development in Algeria,” said Al Walker, Anadarko Chairman, President and CEO. “We are increasing our full-year sales-volume guidance by 5 million BOE, reflecting our confidence in the portfolio’s capability to continue delivering strong results. To further enhance performance, we will continue to be an active portfolio manager and pursue additional opportunities to accelerate value as appropriate.”
OPERATIONS SUMMARY
During the second quarter, Anadarko’s sales volumes of crude oil, natural gas and natural gas liquids (NGLs) totaled a record 77 million BOE, or an average of 848,000 BOE per day, representing an increase of almost 100,000 BOE per day over the second quarter of 2013.
Anadarko’s U.S. onshore liquids sales volumes increased by more than 86,000 barrels per day over the second quarter of 2013, led by outstanding growth in the company’s liquids-rich assets in the Wattenberg field, Eagleford Shale, Wolfcamp Shale and the East Texas/North Louisiana area. The Wattenberg field averaged a record 169,000 BOE per day in the second quarter, a 63,000-BOE-per-day increase over the second quarter of 2013. Wattenberg’s growth was highlighted by an increase of 52,000 barrels per day of higher-margin liquids volumes relative to the second-quarter 2013, resulting from the continued strong performance of the company’s horizontal program, higher NGL recoveries through the startup of the Lancaster cryogenic plant and lower line pressures in the field.
Anadarko achieved oil production milestones at the El Merk development in Algeria, which recently achieved a gross-daily production record of more than 150,000 barrels per day, and at the Jubilee field offshore Ghana, where cumulative gross oil production surpassed 100 million barrels during the quarter.
In the Gulf of Mexico, Anadarko completed all major construction and installation projects at its Lucius development. The 80,000-barrels-of-oil-per-day Lucius spar is expected to achieve first oil on schedule around the beginning of the fourth quarter of 2014. In addition, construction on the hull of the Heidelberg spar is nearly complete, and it remains on schedule to achieve first oil in 2016.
OPERATIONS REPORT
For details on Anadarko’s operating areas and exploration program, including tables illustrating same-store sales information,(3) please refer to the comprehensive report on second-quarter 2014 activity. The report is available at www.anadarko.com.
FINANCIAL SUMMARY
During the quarter, the company generated more than $2.4 billion of discretionary cash flow and ended the quarter with approximately $5.4 billion of cash on hand, while increasing the quarterly dividend by 50 percent. In addition, Anadarko entered into a settlement agreement with the plaintiffs in the Tronox Adversary Proceeding. The settlement agreement is subject to approval by the District Court, which the company expects to occur during the second half of 2014.
Anadarko also enhanced its liquidity position by issuing $1.25 billion of senior notes, and by entering into new unsecured credit facilities, which are available upon the satisfaction of certain conditions. Additionally, the company successfully completed a secondary sale of WGP common units, which resulted in cash proceeds of approximately $335 million to Anadarko.
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Wednesday, July 30, 2014, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company’s outlook for the remainder of 2014. The dial-in number is 855.812.0464 in the United States or 970.300.2271 internationally. The confirmation number is 53684166. 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 current hedge positions 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) See the accompanying table for a reconciliation of same-store sales. “Same-store” sales volumes are intended to present performance of Anadarko’s continuing asset base, giving effect to recently announced or closed 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 2013, the company had approximately 2.79 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 court approval of the settlement agreement related to the Tronox Adversary Proceeding, issuance of the injunction and dismissal with prejudice of the claims asserted in the Adversary Proceeding, Anadarko’s ability to achieve its production targets, successfully manage its capital expenditures, 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 June 30, 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* | | $ | (237 | ) | | $ | (151 | ) | | $ | (0.30 | ) |
| Gains (losses) on divestitures, net | | 9 |
| | 8 |
| | 0.02 |
|
| Impairments | | (117 | ) | | (75 | ) | | (0.15 | ) |
| Change in uncertain tax positions (FIN 48) | | — |
| | (115 | ) | | (0.23 | ) |
| Contingent Clean Water Act penalty accrual | | (90 | ) | | (90 | ) | | (0.17 | ) |
| Interest expense related to Tronox settlement | | (19 | ) | | (19 | ) | | (0.04 | ) |
| | | $ | (454 | ) | | $ | (442 | ) | | $ | (0.87 | ) |
| |
| * | For the quarter ended June 30, 2014, this includes $(76) million related to commodity derivatives, $(159) million related to other derivatives, and $(2) million related to gathering, processing, and marketing sales. |
|
| | | | | | | | | | | | |
| | | Quarter Ended June 30, 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* | | $ | 641 |
| | $ | 407 |
| | $ | 0.81 |
|
| Gains (losses) on divestitures, net | | 13 |
| | 9 |
| | 0.02 |
|
| Impairments | | (10 | ) | | (4 | ) | | (0.01 | ) |
| Third-party well and platform decommissioning obligation | | (141 | ) | | (89 | ) | | (0.18 | ) |
| Reversal of Canadian indemnification liability | | 56 |
| | 35 |
| | 0.07 |
|
| Change in uncertain tax positions (FIN 48) | | — |
| | 37 |
| | 0.07 |
|
| | | $ | 559 |
| | $ | 395 |
| | $ | 0.78 |
|
| |
| * | For the quarter ended June 30, 2013, this includes $373 million related to commodity derivatives, $262 million related to other derivatives, and $6 million related to gathering, processing, and marketing sales. |
Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), free cash flow (non-GAAP), as well as net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. 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. Management uses adjusted net income (loss) to evaluate the Company’s operational trends and performance.
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| | June 30, | | June 30, |
| millions | 2014 | | 2013 | | 2014 | | 2013 |
| Net cash provided by operating activities | $ | 2,462 |
| | $ | 2,502 |
| | $ | 4,191 |
| | $ | 5,005 |
|
| Add back | | | | | | | |
| Algeria exceptional profits tax settlement | — |
| | (248 | ) | | — |
| | (698 | ) |
| Increase (decrease) in accounts receivable | (83 | ) | | (217 | ) | | 183 |
| | (257 | ) |
| (Increase) decrease in accounts payable and accrued expenses | (84 | ) | | (346 | ) | | (21 | ) | | (221 | ) |
| Other items—net | 82 |
| | 129 |
| | 27 |
| | 11 |
|
| Certain nonoperating and other excluded items | 1 |
| | 88 |
| | 1 |
| | 124 |
|
| Current taxes related to asset monetization | 56 |
| | — |
| | 576 |
| | — |
|
| Discretionary cash flow from operations | $ | 2,434 |
| | $ | 1,908 |
| | $ | 4,957 |
| | $ | 3,964 |
|
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| | June 30, | | June 30, |
| millions | 2014 | | 2013 | | 2014 | | 2013 |
| Discretionary cash flow from operations | $ | 2,434 |
| | $ | 1,908 |
| | $ | 4,957 |
| | $ | 3,964 |
|
| Less capital expenditures* | 2,402 |
| | 1,866 |
| | 4,970 |
| | 3,613 |
|
| Free cash flow | $ | 32 |
| | $ | 42 |
| | $ | (13 | ) | | $ | 351 |
|
| |
| * | Includes Western Gas Partners, LP (WES) capital expenditures of $173 million for the quarter ended June 30, 2014, $138 million for the quarter ended June 30, 2013, $343 million for the six months ended June 30, 2014, and $437 million for the six months ended June 30, 2013. |
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Quarter Ended |
| | June 30, 2014 | | June 30, 2013 |
| | After | | Per Share | | After | | Per Share |
| millions except per-share amounts | Tax | | (diluted) | | Tax | | (diluted) |
| Net income (loss) attributable to common stockholders | $ | 227 |
| | $ | 0.45 |
| | $ | 929 |
| | $ | 1.83 |
|
| Less certain items affecting comparability | (442 | ) | | (0.87 | ) | | 395 |
| | 0.78 |
|
| Adjusted net income (loss) | $ | 669 |
| | $ | 1.32 |
| | $ | 534 |
| | $ | 1.05 |
|
Presented below is a reconciliation of total debt (GAAP) to net debt (non-GAAP). 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.
|
| | | | |
| | | June 30, |
| millions | | 2014 |
| Total debt | | $ | 13,414 |
|
| Less cash and cash equivalents | | 5,365 |
|
| Net debt | | $ | 8,049 |
|
| | | |
| Net debt | | $ | 8,049 |
|
| Stockholders’ equity | | 19,331 |
|
| Adjusted capitalization | | $ | 27,380 |
|
|
| | | |
| Net debt to adjusted capitalization ratio | | 29 | % |
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| Summary Financial Information | June 30, | | June 30, |
| millions except per-share amounts | 2014 | | 2013 | | 2014 | | 2013 |
| Consolidated Statements of Income | | | | | | | |
| Revenues and Other | | | | | | | |
| Natural-gas sales | $ | 991 |
| | $ | 935 |
| | $ | 2,208 |
| | $ | 1,742 |
|
| Oil and condensate sales | 2,705 |
| | 1,995 |
| | 5,129 |
| | 4,372 |
|
| Natural-gas liquids sales | 411 |
| | 261 |
| | 797 |
| | 564 |
|
| Gathering, processing, and marketing sales | 278 |
| | 249 |
| | 589 |
| | 480 |
|
| Gains (losses) on divestitures and other, net | 54 |
| | 57 |
| | 1,560 |
| | 232 |
|
| Total | 4,439 |
| | 3,497 |
| | 10,283 |
| | 7,390 |
|
| Costs and Expenses | | | | | | | |
| Oil and gas operating | 273 |
| | 245 |
| | 586 |
| | 492 |
|
| Oil and gas transportation and other | 281 |
| | 253 |
| | 547 |
| | 508 |
|
| Exploration | 502 |
| | 178 |
| | 801 |
| | 442 |
|
| Gathering, processing, and marketing | 250 |
| | 222 |
| | 502 |
| | 421 |
|
| General and administrative | 305 |
| | 260 |
| | 603 |
| | 532 |
|
| Depreciation, depletion, and amortization | 1,048 |
| | 940 |
| | 2,172 |
| | 1,962 |
|
| Other taxes | 361 |
| | 245 |
| | 675 |
| | 525 |
|
| Impairments | 117 |
| | 10 |
| | 120 |
| | 39 |
|
| Algeria exceptional profits tax settlement | — |
| | — |
| | — |
| | 33 |
|
| Deepwater Horizon settlement and related costs | 93 |
| | 4 |
| | 93 |
| | 7 |
|
| Total | 3,230 |
| | 2,357 |
| | 6,099 |
| | 4,961 |
|
| Operating Income (Loss) | 1,209 |
| | 1,140 |
| | 4,184 |
| | 2,429 |
|
| Other (Income) Expense | | | | | | | |
| Interest expense | 186 |
| | 172 |
| | 369 |
| | 336 |
|
| (Gains) losses on derivatives, net | 323 |
| | (656 | ) | | 776 |
| | (465 | ) |
| Other (income) expense, net | (13 | ) | | 98 |
| | (12 | ) | | 92 |
|
| Tronox-related contingent loss | 19 |
| | — |
| | 4,319 |
| | — |
|
| Total | 515 |
| | (386 | ) | | 5,452 |
| | (37 | ) |
| Income (Loss) Before Income Taxes | 694 |
| | 1,526 |
| | (1,268 | ) | | 2,466 |
|
| Income tax expense (benefit) | 428 |
| | 567 |
| | 1,092 |
| | 1,023 |
|
| Net Income (Loss) | 266 |
| | 959 |
| | (2,360 | ) | | 1,443 |
|
| Net income (loss) attributable to noncontrolling interests | 39 |
| | 30 |
| | 82 |
| | 54 |
|
| Net Income (Loss) Attributable to Common Stockholders | $ | 227 |
| | $ | 929 |
| | $ | (2,442 | ) | | $ | 1,389 |
|
| Per Common Share | | | | | | | |
| Net income (loss) attributable to common stockholders—basic | $ | 0.45 |
| | $ | 1.84 |
| | $ | (4.84 | ) | | $ | 2.75 |
|
| Net income (loss) attributable to common stockholders—diluted | $ | 0.45 |
| | $ | 1.83 |
| | $ | (4.84 | ) | | $ | 2.74 |
|
| Average Number of Common Shares Outstanding—Basic | 505 |
| | 502 |
| | 505 |
| | 501 |
|
| Average Number of Common Shares Outstanding—Diluted | 507 |
| | 504 |
| | 505 |
| | 504 |
|
| | | | | | | | |
| Exploration Expense | | | | | | | |
| Dry hole expense | $ | 302 |
| | $ | 66 |
| | $ | 423 |
| | $ | 224 |
|
| Impairments of unproved properties | 109 |
| | 20 |
| | 186 |
| | 39 |
|
| Geological and geophysical expense | 37 |
| | 23 |
| | 80 |
| | 60 |
|
| Exploration overhead and other | 54 |
| | 69 |
| | 112 |
| | 119 |
|
| Total | $ | 502 |
| | $ | 178 |
| | $ | 801 |
| | $ | 442 |
|
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Six Months Ended |
| Summary Financial Information | June 30, | | June 30, |
| millions | 2014 | | 2013 | | 2014 | | 2013 |
| Cash Flows from Operating Activities | | | | | | | |
| Net income (loss) | $ | 266 |
| | $ | 959 |
| | $ | (2,360 | ) | | $ | 1,443 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities | | | | | | | |
| Depreciation, depletion, and amortization | 1,048 |
| | 940 |
| | 2,172 |
| | 1,962 |
|
| Deferred income taxes | 142 |
| | 401 |
| | 188 |
| | 563 |
|
| Dry hole expense and impairments of unproved properties | 411 |
| | 86 |
| | 609 |
| | 263 |
|
| Impairments | 117 |
| | 10 |
| | 120 |
| | 39 |
|
| (Gains) losses on divestitures, net | (9 | ) | | (13 | ) | | (1,468 | ) | | (157 | ) |
| Total (gains) losses on derivatives, net | 325 |
| | (659 | ) | | 786 |
| | (460 | ) |
Operating portion of net cash received (paid) in settlement of derivative instruments | (88 | ) | | 18 |
| | (186 | ) | | 65 |
|
| Other | 54 |
| | 77 |
| | 108 |
| | 121 |
|
| Changes in assets and liabilities | | | | | | | |
| Deepwater Horizon settlement and related costs | 92 |
| | 1 |
| | 92 |
| | 1 |
|
| Algeria exceptional profits tax settlement | — |
| | 248 |
| | — |
| | 698 |
|
| Tronox-related contingent loss | 19 |
| | — |
| | 4,319 |
| | — |
|
| (Increase) decrease in accounts receivable | 83 |
| | 217 |
| | (183 | ) | | 257 |
|
Increase (decrease) in accounts payable and accrued expenses | 84 |
| | 346 |
| | 21 |
| | 221 |
|
| Other items—net | (82 | ) | | (129 | ) | | (27 | ) | | (11 | ) |
| Net Cash Provided by Operating Activities | $ | 2,462 |
| | $ | 2,502 |
| | $ | 4,191 |
| | $ | 5,005 |
|
| | | | | | | | |
| Capital Expenditures | $ | 2,402 |
| | $ | 1,866 |
| | $ | 4,970 |
| | $ | 3,613 |
|
|
| | | | | | | |
| | June 30, | | December 31, |
| millions | 2014 | | 2013 |
| Condensed Balance Sheets | | | |
| Cash and cash equivalents | $ | 5,365 |
| | $ | 3,698 |
|
| Accounts receivable, net of allowance | 3,079 |
| | 2,722 |
|
| Other current assets | 536 |
| | 688 |
|
| Net properties and equipment | 41,487 |
| | 40,929 |
|
| Other assets | 2,352 |
| | 2,082 |
|
| Goodwill and other intangible assets | 5,595 |
| | 5,662 |
|
| Total Assets | $ | 58,414 |
| | $ | 55,781 |
|
| Other current liabilities | $ | 5,499 |
| | $ | 5,703 |
|
| Deepwater Horizon settlement and related costs | 92 |
| | — |
|
| Tronox-related contingent liability | 5,169 |
| | — |
|
| Long-term debt | 13,414 |
| | 13,065 |
|
| Deferred income taxes | 9,186 |
| | 9,245 |
|
| Other long-term liabilities | 3,882 |
| | 4,118 |
|
| Stockholders’ equity | 19,331 |
| | 21,857 |
|
| Noncontrolling interests | 1,841 |
| | 1,793 |
|
| Total Liabilities and Equity | $ | 58,414 |
| | $ | 55,781 |
|
| Capitalization | | | |
| Total debt | $ | 13,414 |
| | $ | 13,565 |
|
| Stockholders’ equity | 19,331 |
| | 21,857 |
|
| Total | $ | 32,745 |
| | $ | 35,422 |
|
|
| | | | | |
| Capitalization Ratios | | | |
| Total debt | 41 | % | | 38 | % |
| Stockholders’ equity | 59 | % | | 62 | % |
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales Volumes and Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Daily Sales Volumes |
| Sales Volumes |
| Average Sales Price |
|
|
| Crude Oil & |
|
|
|
|
| Crude Oil & |
|
|
|
|
| Crude Oil & |
|
|
| Natural Gas |
| Condensate |
| NGLs |
| Natural Gas |
| Condensate |
| NGLs |
| Natural Gas |
| Condensate |
| NGLs |
| MMcf/d |
| MBbls/d |
| MBbls/d |
| Bcf |
| MMBbls |
| MMBbls |
| Per Mcf |
| Per Bbl |
| Per Bbl |
| Quarter Ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,620 |
|
| 196 |
|
| 119 |
|
| 238 |
|
| 18 |
|
| 11 |
|
| $ | 4.16 |
|
| $ | 98.69 |
|
| $ | 37.39 |
|
| Algeria | — |
|
| 72 |
|
| 1 |
|
| — |
|
| 7 |
|
| — |
|
| — |
|
| 108.64 |
|
| 66.69 |
|
| Other International | — |
|
| 23 |
|
| — |
|
| — |
|
| 2 |
|
| — |
|
| — |
|
| 110.16 |
|
| — |
|
| Total | 2,620 |
|
| 291 |
|
| 120 |
|
| 238 |
|
| 27 |
|
| 11 |
|
| $ | 4.16 |
|
| $ | 102.04 |
|
| $ | 37.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,647 |
|
| 155 |
|
| 83 |
|
| 241 |
|
| 14 |
|
| 7 |
|
| $ | 3.88 |
|
| $ | 94.99 |
|
| $ | 34.33 |
|
| Algeria | — |
|
| 43 |
|
| — |
|
| — |
|
| 4 |
|
| — |
|
| — |
|
| 102.18 |
|
| — |
|
| Other International | — |
|
| 28 |
|
| — |
|
| — |
|
| 3 |
|
| — |
|
| — |
|
| 101.84 |
|
| — |
|
| Total | 2,647 |
|
| 226 |
|
| 83 |
|
| 241 |
|
| 21 |
|
| 7 |
|
| $ | 3.88 |
|
| $ | 97.21 |
|
| $ | 34.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,658 |
|
| 189 |
|
| 109 |
|
| 481 |
|
| 34 |
|
| 20 |
|
| $ | 4.59 |
|
| $ | 96.86 |
|
| $ | 40.08 |
|
| Algeria | — |
|
| 65 |
|
| 1 |
|
| — |
|
| 12 |
|
| — |
|
| — |
|
| 108.60 |
|
| 66.69 |
|
| Other International | — |
|
| 27 |
|
| — |
|
| — |
|
| 5 |
|
| — |
|
| — |
|
| 109.00 |
|
| — |
|
| Total | 2,658 |
|
| 281 |
|
| 110 |
|
| 481 |
|
| 51 |
|
| 20 |
|
| $ | 4.59 |
|
| $ | 100.76 |
|
| $ | 40.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,668 |
|
| 157 |
|
| 85 |
|
| 483 |
|
| 28 |
|
| 15 |
|
| $ | 3.61 |
|
| $ | 96.17 |
|
| $ | 36.29 |
|
| Algeria | — |
|
| 48 |
|
| — |
|
| — |
|
| 9 |
|
| — |
|
| — |
|
| 108.06 |
|
| — |
|
| Other International | — |
|
| 36 |
|
| — |
|
| — |
|
| 7 |
|
| — |
|
| — |
|
| 107.66 |
|
| — |
|
| Total | 2,668 |
|
| 241 |
|
| 85 |
|
| 483 |
|
| 44 |
|
| 15 |
|
| $ | 3.61 |
|
| $ | 100.26 |
|
| $ | 36.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Daily Volumes MBOE/d |
| Sales Volumes MMBOE |
|
|
|
|
|
|
|
|
|
|
| Quarter Ended June 30, 2014 | 848 |
| 77 |
|
|
|
|
|
|
|
|
|
|
| Quarter Ended June 30, 2013 | 750 |
| 69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, 2014 | 834 |
| 151 |
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, 2013 | 771 |
| 140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| 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 June 30, 2014 | | | | | | | | | | | | |
| United States | $ | 991 |
| | $ | 1,768 |
| | $ | 404 |
| | | $ | (41 | ) | | $ | (44 | ) | | $ | 2 |
|
| Algeria | — |
| | 711 |
| | 7 |
| | | — |
| | (5 | ) | | — |
|
| Other International | — |
| | 226 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 991 |
| | $ | 2,705 |
| | $ | 411 |
| | | $ | (41 | ) | | $ | (49 | ) | | $ | 2 |
|
| | | | | | | | | | | | | |
| Quarter Ended June 30, 2013 | | | | | | | | | | | | |
| United States | $ | 935 |
| | $ | 1,336 |
| | $ | 261 |
| | | $ | (16 | ) | | $ | 1 |
| | $ | 3 |
|
| Algeria | — |
| | 400 |
| | — |
| | | — |
| | 33 |
| | — |
|
| Other International | — |
| | 259 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 935 |
| | $ | 1,995 |
| | $ | 261 |
| | | $ | (16 | ) | | $ | 34 |
| | $ | 3 |
|
| | | | | | | | | | | | | |
| Six Months Ended June 30, 2014 | | | | | | | | | | | | |
| United States | $ | 2,208 |
| | $ | 3,308 |
| | $ | 790 |
| | | $ | (122 | ) | | $ | (60 | ) | | $ | 2 |
|
| Algeria | — |
| | 1,293 |
| | 7 |
| | | — |
| | — |
| | — |
|
| Other International | — |
| | 528 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 2,208 |
| | $ | 5,129 |
| | $ | 797 |
| | | $ | (122 | ) | | $ | (60 | ) | | $ | 2 |
|
| | | | | | | | | | | | | |
| Six Months Ended June 30, 2013 | | | | | | | | | | | | |
| United States | $ | 1,742 |
| | $ | 2,729 |
| | $ | 564 |
| | | $ | 51 |
| | $ | 2 |
| | $ | 5 |
|
| Algeria | — |
| | 937 |
| | — |
| | | — |
| | 14 |
| | — |
|
| Other International | — |
| | 706 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 1,742 |
| | $ | 4,372 |
| | $ | 564 |
| | | $ | 51 |
| | $ | 16 |
| | $ | 5 |
|
|
| | | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Financial and Operating External Guidance |
| As of July 29, 2014 |
| | | | | |
| | | 3rd Qtr | | Total Year |
| | | Guidance * | | Guidance * |
| | | | | | | | | |
| | | Units | | Units |
| | | | | | | | | |
| Total Sales Volumes (MMBOE) | | 76 |
| — |
| 78 |
| | 299 |
| — |
| 302 |
|
| Total Sales Volumes (MBOE/d) | | 826 |
| — |
| 848 |
| | 819 |
| — |
| 827 |
|
| | | | | | | | | |
| Crude Oil (MBbl/d) | | 304 |
| — |
| 311 |
| | 283 |
| — |
| 286 |
|
| | | | | | | | | |
| United States | | 203 |
| — |
| 208 |
| | 195 |
| — |
| 199 |
|
| Algeria | | 72 |
| — |
| 73 |
| | 68 |
| — |
| 70 |
|
| Ghana | | 29 |
| — |
| 30 |
| | 19 |
| — |
| 20 |
|
| | | | | | | | | |
| Natural Gas (MMcf/d) | | | | | | | | |
| | | | | | | | | |
| United States | | 2,425 |
| — |
| 2,475 |
| | 2,530 |
| — |
| 2,560 |
|
| | | | | | | | | |
| Natural Gas Liquids (MBbl/d) | | | | | | | | |
| | | | | | | | | |
| United States | | 110 |
| — |
| 120 |
| | 112 |
| — |
| 115 |
|
| Algeria | | 2 |
| — |
| 3 |
| | 1 |
| — |
| 2 |
|
| | | | | | | | | |
| | | | | | | | | |
| | | $ / Unit | | $ / Unit |
| Price Differentials vs NYMEX (w/o hedges) | | | | | | | | |
| | | | | | | | | |
| Crude Oil ($/Bbl) | | (2.00 | ) | — |
| 2.00 |
| | (2.00 | ) | — |
| 2.00 |
|
| | | | | | | | | |
| United States | | (6.00 | ) | — |
| (1.00 | ) | | (6.00 | ) | — |
| (1.00 | ) |
| Algeria | | 5.00 |
| — |
| 10.00 |
| | 5.00 |
| — |
| 10.00 |
|
| Ghana | | 3.00 |
| — |
| 8.00 |
| | 4.00 |
| — |
| 9.00 |
|
| | | | | | | | | |
| Natural Gas ($/Mcf) | | | | | | | | |
| | | | | | | | | |
| United States | | (0.50 | ) | — |
| (0.25 | ) | | (0.35 | ) | — |
| (0.25 | ) |
| | | | | | | | | |
| * All volumes exclude the impact from China and Pinedale/Jonah. | | | | | | | | |
|
| | | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Financial and Operating External Guidance |
| As of July 29, 2014 |
| | | | | |
| | | 3rd Qtr | | Total Year |
| | | Guidance * | | Guidance * |
| | | | | | | | | |
| | | $ MM | | $ MM |
| Other Revenues | | | | | | | | |
| Marketing and Gathering Margin | | 50 |
| — |
| 70 |
| | 230 |
| — |
| 250 |
|
| Minerals and Other | | 45 |
| — |
| 55 |
| | 190 |
| — |
| 210 |
|
| | | | | | | | | |
| | | | | | | | | |
| | | $ / BOE | | $ / BOE |
| Costs and Expenses | | | | | | | | |
| Oil & Gas Direct Operating | | 3.80 |
| — |
| 4.00 |
| | 3.80 |
| — |
| 4.00 |
|
| Oil & Gas Transportation/Other | | 3.85 |
| — |
| 4.05 |
| | 3.80 |
| — |
| 3.90 |
|
| Depreciation, Depletion, and Amortization | | 14.00 |
| — |
| 14.50 |
| | 14.00 |
| — |
| 14.50 |
|
| Production Taxes (% of Product Revenue) | | 9.0 | % | — |
| 9.5 | % | | 8.5 | % | — |
| 9.0 | % |
| | | | | | | | | |
| | | $ MM | | $ MM |
| | | | | | | | | |
| General and Administrative | | 350 |
| — |
| 370 |
| | 1,200 |
| — |
| 1,300 |
|
| Exploration Expense | | | | | | | | |
| Non-Cash | | 150 |
| — |
| 200 |
| | 850 |
| — |
| 950 |
|
| Cash | | 105 |
| — |
| 115 |
| | 400 |
| — |
| 450 |
|
| Interest Expense (net) | | 195 |
| — |
| 205 |
| | 760 |
| — |
| 770 |
|
| Other (Income) Expense - Includes Noncontrolling Interests | | 60 |
| — |
| 70 |
| | 175 |
| — |
| 195 |
|
| | | | | | | | | |
| Tax Rate | | | | | | | | |
| Algeria (All current) | | 45 | % | — |
| 55 | % | | 45 | % | — |
| 55 | % |
| Rest of Company (50% Current for Q3 and 10% for FY) | | 40 | % | — |
| 50 | % | | 35 | % | — |
| 45 | % |
| | | | | | | | | |
| | | | | | | | | |
| Avg. Shares Outstanding (MM) | | | | | | | | |
| Basic | | 505 |
| — |
| 506 |
| | 504 |
| — |
| 505 |
|
| Diluted | | 507 |
| — |
| 508 |
| | 507 |
| — |
| 508 |
|
| | | | | | | | | |
| | | | | | | | | |
| Capital Investment (Excluding Western Gas Partners, LP) | $ MM | | $ MM |
| | | | | | | | | |
| APC Capital Expenditures | | 2,100 |
| — |
| 2,300 |
| | 8,600 |
| — |
| 8,800 |
|
| | | | | | | | | |
| * Excludes items affecting comparability | | | | | | | | |
|
| | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Commodity Hedge Positions (Excluding Natural Gas Basis) |
| As of July 29, 2014 |
| | | | | | | | | | |
| | | | | | Weighted Average Price per Barrel |
| | | | Volume (MBbls/d) | | Floor Sold | | Floor Purchased | | Ceiling Sold |
| Crude Oil | | | | | | | | |
| Three-Way Collars | | | | | | | |
| 2015 | | | | | | | | | |
| | Brent | | 25 |
| $ | 85.00 |
| $ | 100.00 |
| $ | 117.55 |
|
| | | | | | | | | | |
| Fixed Price - Financial | | | | | | | |
| 2014 | | | | | | | |
| | WTI | | 70 |
| $ | 96.03 |
| | | | |
| | Brent | | 70 |
| $ | 109.55 |
| | | | |
| | | | 140 |
| $ | 101.94 |
| | | | |
| | | | | | |
| | | | Volume | | Weighted Average Price per MMBtu |
| | | | (thousand | | | | | | |
| | | | MMBtu/d) | | Floor Sold | | Floor Purchased | | Ceiling Sold |
| Natural Gas | | | | | | | | |
| Three-Way Collars | | | | | | | |
| 2014 | | | 600 |
| $ | 2.75 |
| $ | 3.75 |
| $ | 5.01 |
|
| 2015 | | | 635 |
| $ | 2.75 |
| $ | 3.75 |
| $ | 4.76 |
|
| | | | | | | | | | |
| Fixed Price - Financial | | | | | | | |
| 2014 | | | 1,000 |
| $ | 4.23 |
| | | | |
|
| | | | | | | |
| | | | | | | | |
| Interest-Rate Derivatives |
| As of July 29, 2014 |
| | | | | | | | |
| | 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 June 30, 2014 | | Quarter Ended June 30, 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 | 2,444 |
| | 146 |
| | 113 |
| | 667 |
| | 2,279 |
| | 96 |
| | 74 |
| | 550 |
|
| Deepwater Gulf of Mexico | 176 |
| | 41 |
| | 6 |
| | 76 |
| | 280 |
| | 46 |
| | 6 |
| | 98 |
|
| International and Alaska | — |
| | 101 |
| | 1 |
| | 102 |
| | — |
| | 74 |
| | — |
| | 74 |
|
| Same-Store Sales | 2,620 |
| | 288 |
| | 120 |
| | 845 |
| | 2,559 |
| | 216 |
| | 80 |
| | 722 |
|
| China and Pinedale/Jonah | — |
| | 3 |
| | — |
| | 3 |
| | 88 |
| | 10 |
| | 3 |
| | 28 |
|
| Total | 2,620 |
| | 291 |
| | 120 |
| | 848 |
| | 2,647 |
| | 226 |
| | 83 |
| | 750 |
|
| | | | | | | | | | | | | | | | |
