NEWS
ANADARKO ANNOUNCES THIRD-QUARTER 2014 RESULTS
INCREASES FULL-YEAR SALES-VOLUME GUIDANCE
MONETIZES ADDITIONAL ASSETS FOR APPROXIMATELY $1.2 BILLION
HOUSTON, Oct. 28, 2014 - Anadarko Petroleum Corporation (NYSE: APC) today announced third-quarter 2014 net income attributable to common stockholders of $1.087 billion, or $2.12 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $487 million, or $0.96 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the third quarter of 2014 was approximately $2.323 billion. Discretionary cash flow totaled $1.776 billion,(2) including the year-to-date impact of an adjustment to 2014 U.S. current taxes related to the deferral of the tax benefit and change in anticipated timing of the Tronox settlement payment to early 2015.
THIRD-QUARTER 2014 HIGHLIGHTS
| |
| • | Increased year-over-year liquids sales volumes by more than 110,000 barrels per day on a divestiture-adjusted basis(3) |
| |
| • | Closed approximately $1.2 billion of additional asset monetizations |
| |
| • | Doubled year-over-year oil sales volumes in the Wattenberg field |
| |
| • | Expanded the company’s “high-confidence” area in the Wolfcamp Shale oil opportunity |
“Anadarko delivered another outstanding quarter with year-over-year liquids sales-volume growth of 35 percent on a divestiture-adjusted basis,(3) approximately $1.2 billion of new asset monetizations and enhanced cash margins per barrel,” said Al Walker, Anadarko Chairman, President and CEO. “The impressive results from our operating activities enable us to increase our 2014 full-year sales-volume expectations for the third time this year, to a new range of 304 to 306 million BOE. The significant liquids sales-volume growth was primarily driven by the excellent results of our Wattenberg horizontal program, where oil volumes doubled relative to the third quarter of last year. We believe the depth and flexibility of our portfolio, along with our efficient allocation of capital and commitment to value acceleration will enable us to continue delivering differentiating value to our shareholders.”
OPERATIONS SUMMARY
During the third quarter, Anadarko’s sales volumes of crude oil, natural gas and natural gas liquids (NGLs) totaled a record 78 million BOE, or an average of 849,000 BOE per day, representing an increase of almost 105,000 BOE per day on a divestiture-adjusted basis(3) over the third quarter of 2013. The growth in higher-margin liquids sales volumes significantly improved the overall product mix to 51 percent liquids in the third quarter of 2014 versus 43 percent in the third quarter of 2013.
The strong growth was largely driven by performance in the Wattenberg field, which continued to benefit from the company’s significant commitment to midstream expansions and achieved year-over-year sales-volume growth of 88,000 BOE per day, averaging 189,000 BOE per day for the quarter. The company also demonstrated significant sales-volume growth in the Eagleford Shale, as well as the Wolfcamp Shale oil opportunity where Anadarko expanded its “high-confidence” area within its 600,000-gross-acre position.
Anadarko also continued to advance multiple mega projects during the quarter. In the Gulf of Mexico, the Lucius project is on schedule with first oil expected in the coming weeks. Construction on the Heidelberg spar hull was completed, and the project remains on schedule for first oil in 2016. In Mozambique, the Parliament passed enabling legislation during its last session of the year. This was an important first step toward the ratification of a Decree Law, which is a necessity in creating and facilitating the contractual and legal conditions to move this company-operated LNG project forward.
FINANCIAL SUMMARY
Anadarko ended the quarter with approximately $8.3 billion of cash on hand, with the increase driven by asset monetizations. In addition to closing the previously announced $1.075 billion sale of its China subsidiary, the company signed and closed several additional monetizations during the quarter totaling approximately $1.2 billion. Among the new monetizations, Anadarko closed a carried-interest agreement in the emerging Eaglebine play of Central Texas and divested its non-operated interest in the Vito discovery. The company also closed the sale of its interest in a portion of the Utica Shale play in central Ohio, as well as several other transactions.
“Closing more than $2.2 billion of monetizations in the quarter, including our China subsidiary, demonstrates our ongoing commitment to accelerating and enhancing value,” added Walker. “We will continue to actively manage our deep portfolio of assets and evaluate opportunities to bring the embedded value forward for our stakeholders.”
OPERATIONS REPORT
For details on Anadarko’s operating areas and exploration program, including additional details on the newly announced asset monetizations, please refer to the comprehensive report on third-quarter 2014 activity. The report is available at www.anadarko.com.
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Wednesday, Oct. 29, 2014, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss third-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 95221684. 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, 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) 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 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 plan, 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 September 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* | | $ | 276 |
| | $ | 175 |
| | $ | 0.35 |
|
| Gains (losses) on divestitures, net | | 726 |
| | 647 |
| | 1.27 |
|
| Impairments | | (394 | ) | | (249 | ) | | (0.49 | ) |
| Change in uncertain tax positions (FIN 48) | | — |
| | (60 | ) | | (0.12 | ) |
Third-party well and platform decommissioning obligation
| | (22 | ) | | (14 | ) | | (0.03 | ) |
| Interest expense related to Tronox settlement | | (19 | ) | | (12 | ) | | (0.02 | ) |
| | | $ | 567 |
| | $ | 487 |
| | $ | 0.96 |
|
| |
| * | For the quarter ended September 30, 2014, this includes $371 million related to commodity derivatives, $(96) million related to other derivatives, and $1 million related to gathering, processing, and marketing sales. |
|
| | | | | | | | | | | | |
| | | Quarter Ended September 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* | | $ | (36 | ) | | $ | (21 | ) | | $ | (0.04 | ) |
| Gains (losses) on divestitures, net | | 8 |
| | 5 |
| | 0.01 |
|
| Impairments | | (593 | ) | | (376 | ) | | (0.74 | ) |
| Third-party well and platform decommissioning obligation | | 10 |
| | 6 |
| | 0.01 |
|
| | | $ | (611 | ) | | $ | (386 | ) | | $ | (0.76 | ) |
| |
| * | For the quarter ended September 30, 2013, this includes $(120) million related to commodity derivatives, $74 million related to other derivatives, and $10 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 | | Nine Months Ended |
| | September 30, | | September 30, |
| millions | 2014 | | 2013 | | 2014 | | 2013 |
| Net cash provided by operating activities | $ | 2,323 |
| | $ | 1,779 |
| | $ | 6,514 |
| | $ | 6,784 |
|
| Add back | | | | | | | |
| Algeria exceptional profits tax settlement | — |
| | (32 | ) | | — |
| | (730 | ) |
| Increase (decrease) in accounts receivable | (287 | ) | | 11 |
| | (104 | ) | | (246 | ) |
| (Increase) decrease in accounts payable and accrued expenses | (689 | ) | | 258 |
| | (710 | ) | | 37 |
|
| Other items—net | 198 |
| | 11 |
| | 225 |
| | 22 |
|
| Certain nonoperating and other excluded items | 24 |
| | (7 | ) | | 25 |
| | 117 |
|
| Current taxes related to asset monetization | 207 |
| | — |
| | 1,033 |
| | — |
|
| Discretionary cash flow from operations | $ | 1,776 |
| | $ | 2,020 |
| | $ | 6,983 |
| | $ | 5,984 |
|
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| millions | 2014 | | 2013 | | 2014 | | 2013 |
| Discretionary cash flow from operations | $ | 1,776 |
| | $ | 2,020 |
| | $ | 6,983 |
| | $ | 5,984 |
|
| Less capital expenditures* | 2,117 |
| | 2,298 |
| | 7,087 |
| | 5,911 |
|
| Free cash flow | $ | (341 | ) | | $ | (278 | ) | | $ | (104 | ) | | $ | 73 |
|
| |
| * | Includes Western Gas Partners, LP (WES) capital expenditures of $147 million for the quarter ended September 30, 2014, $185 million for the quarter ended September 30, 2013, $490 million for the nine months ended September 30, 2014, and $622 million for the nine months ended September 30, 2013. |
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Quarter Ended |
| | September 30, 2014 | | September 30, 2013 |
| | After | | Per Share | | After | | Per Share |
| millions except per-share amounts | Tax | | (diluted) | | Tax | | (diluted) |
| Net income (loss) attributable to common stockholders | $ | 1,087 |
| | $ | 2.12 |
| | $ | 182 |
| | $ | 0.36 |
|
| Less certain items affecting comparability | 487 |
| | 0.96 |
| | (386 | ) | | (0.76 | ) |
| Adjusted net income (loss) | $ | 600 |
| | $ | 1.16 |
| | $ | 568 |
| | $ | 1.12 |
|
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.
|
| | | | |
| | | September 30, |
| millions | | 2014 |
| Total debt | | $ | 14,728 |
|
| Less cash and cash equivalents | | 8,335 |
|
| Net debt | | $ | 6,393 |
|
| | | |
| Net debt | | $ | 6,393 |
|
| Stockholders’ equity | | 20,677 |
|
| Adjusted capitalization | | $ | 27,070 |
|
|
| | | |
| Net debt to adjusted capitalization ratio | | 24 | % |
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Nine Months Ended |
| Summary Financial Information | September 30, | | September 30, |
| millions except per-share amounts | 2014 | | 2013 | | 2014 | | 2013 |
| Consolidated Statements of Income | | | | | | | |
| Revenues and Other | | | | | | | |
| Natural-gas sales | $ | 830 |
| | $ | 805 |
| | $ | 3,038 |
| | $ | 2,547 |
|
| Oil and condensate sales | 2,637 |
| | 2,389 |
| | 7,766 |
| | 6,761 |
|
| Natural-gas liquids sales | 424 |
| | 325 |
| | 1,221 |
| | 889 |
|
| Gathering, processing, and marketing sales | 339 |
| | 270 |
| | 928 |
| | 750 |
|
| Gains (losses) on divestitures and other, net | 780 |
| | 64 |
| | 2,340 |
| | 296 |
|
| Total | 5,010 |
| | 3,853 |
| | 15,293 |
| | 11,243 |
|
| Costs and Expenses | | | | | | | |
| Oil and gas operating | 275 |
| | 277 |
| | 861 |
| | 769 |
|
| Oil and gas transportation and other | 322 |
| | 255 |
| | 869 |
| | 763 |
|
| Exploration | 199 |
| | 272 |
| | 1,000 |
| | 714 |
|
| Gathering, processing, and marketing | 269 |
| | 217 |
| | 771 |
| | 638 |
|
| General and administrative | 381 |
| | 255 |
| | 984 |
| | 787 |
|
| Depreciation, depletion, and amortization | 1,163 |
| | 996 |
| | 3,335 |
| | 2,958 |
|
| Other taxes | 306 |
| | 294 |
| | 981 |
| | 819 |
|
| Impairments | 394 |
| | 593 |
| | 514 |
| | 632 |
|
| Algeria exceptional profits tax settlement | — |
| | — |
| | — |
| | 33 |
|
| Deepwater Horizon settlement and related costs | 3 |
| | 5 |
| | 96 |
| | 12 |
|
| Total | 3,312 |
| | 3,164 |
| | 9,411 |
| | 8,125 |
|
| Operating Income (Loss) | 1,698 |
| | 689 |
| | 5,882 |
| | 3,118 |
|
| Other (Income) Expense | | | | | | | |
| Interest expense | 204 |
| | 177 |
| | 573 |
| | 513 |
|
| (Gains) losses on derivatives, net | (323 | ) | | 72 |
| | 453 |
| | (393 | ) |
| Other (income) expense, net | 24 |
| | (23 | ) | | 12 |
| | 69 |
|
| Tronox-related contingent loss | 19 |
| | — |
| | 4,338 |
| | — |
|
| Total | (76 | ) | | 226 |
| | 5,376 |
| | 189 |
|
| Income (Loss) Before Income Taxes | 1,774 |
| | 463 |
| | 506 |
| | 2,929 |
|
| Income tax expense (benefit) | 627 |
| | 240 |
| | 1,719 |
| | 1,263 |
|
| Net Income (Loss) | 1,147 |
| | 223 |
| | (1,213 | ) | | 1,666 |
|
| Net income (loss) attributable to noncontrolling interests | 60 |
| | 41 |
| | 142 |
| | 95 |
|
| Net Income (Loss) Attributable to Common Stockholders | $ | 1,087 |
| | $ | 182 |
| | $ | (1,355 | ) | | $ | 1,571 |
|
| Per Common Share | | | | | | | |
| Net income (loss) attributable to common stockholders—basic | $ | 2.13 |
| | $ | 0.36 |
| | $ | (2.69 | ) | | $ | 3.11 |
|
| Net income (loss) attributable to common stockholders—diluted | $ | 2.12 |
| | $ | 0.36 |
| | $ | (2.69 | ) | | $ | 3.10 |
|
| Average Number of Common Shares Outstanding—Basic | 506 |
| | 503 |
| | 505 |
| | 502 |
|
| Average Number of Common Shares Outstanding—Diluted | 508 |
| | 505 |
| | 505 |
| | 504 |
|
| | | | | | | | |
| Exploration Expense | | | | | | | |
| Dry hole expense | $ | 104 |
| | $ | 77 |
| | $ | 527 |
| | $ | 301 |
|
| Impairments of unproved properties | 30 |
| | 83 |
| | 216 |
| | 122 |
|
| Geological and geophysical expense | 13 |
| | 51 |
| | 93 |
| | 111 |
|
| Exploration overhead and other | 52 |
| | 61 |
| | 164 |
| | 180 |
|
| Total | $ | 199 |
| | $ | 272 |
| | $ | 1,000 |
| | $ | 714 |
|
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Nine Months Ended |
| Summary Financial Information | September 30, | | September 30, |
| millions | 2014 | | 2013 | | 2014 | | 2013 |
| Cash Flows from Operating Activities | | | | | | | |
| Net income (loss) | $ | 1,147 |
| | $ | 223 |
| | $ | (1,213 | ) | | $ | 1,666 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities | | | | | | | |
| Depreciation, depletion, and amortization | 1,163 |
| | 996 |
| | 3,335 |
| | 2,958 |
|
| Deferred income taxes | (398 | ) | | (28 | ) | | (210 | ) | | 535 |
|
| Dry hole expense and impairments of unproved properties | 134 |
| | 160 |
| | 743 |
| | 423 |
|
| Impairments | 394 |
| | 593 |
| | 514 |
| | 632 |
|
| (Gains) losses on divestitures, net | (726 | ) | | (8 | ) | | (2,194 | ) | | (165 | ) |
| Total (gains) losses on derivatives, net | (324 | ) | | 64 |
| | 462 |
| | (396 | ) |
Operating portion of net cash received (paid) in settlement of derivative instruments | 48 |
| | (28 | ) | | (138 | ) | | 37 |
|
| Other | 87 |
| | 53 |
| | 195 |
| | 174 |
|
| Changes in assets and liabilities | | | | | | | |
| Deepwater Horizon settlement and related costs | 1 |
| | 2 |
| | 93 |
| | 3 |
|
| Algeria exceptional profits tax settlement | — |
| | 32 |
| | — |
| | 730 |
|
| Tronox-related contingent loss | 19 |
| | — |
| | 4,338 |
| | — |
|
| (Increase) decrease in accounts receivable | 287 |
| | (11 | ) | | 104 |
| | 246 |
|
Increase (decrease) in accounts payable and accrued expenses | 689 |
| | (258 | ) | | 710 |
| | (37 | ) |
| Other items—net | (198 | ) | | (11 | ) | | (225 | ) | | (22 | ) |
| Net Cash Provided by Operating Activities | $ | 2,323 |
| | $ | 1,779 |
| | $ | 6,514 |
| | $ | 6,784 |
|
| | | | | | | | |
| Capital Expenditures | $ | 2,117 |
| | $ | 2,298 |
| | $ | 7,087 |
| | $ | 5,911 |
|
|
| | | | | | | |
| | September 30, | | December 31, |
| millions | 2014 | | 2013 |
| Condensed Balance Sheets | | | |
| Cash and cash equivalents | $ | 8,335 |
| | $ | 3,698 |
|
| Accounts receivable, net of allowance | 2,712 |
| | 2,722 |
|
| Other current assets | 692 |
| | 688 |
|
| Net properties and equipment | 41,104 |
| | 40,929 |
|
| Other assets | 2,321 |
| | 2,082 |
|
| Goodwill and other intangible assets | 5,501 |
| | 5,662 |
|
| Total Assets | $ | 60,665 |
| | $ | 55,781 |
|
| Other current liabilities | $ | 5,702 |
| | $ | 5,703 |
|
| Deepwater Horizon settlement and related costs | 93 |
| | — |
|
| Tronox-related contingent liability | 5,188 |
| | — |
|
| Long-term debt | 14,728 |
| | 13,065 |
|
| Deferred income taxes | 7,512 |
| | 9,245 |
|
| Other long-term liabilities | 4,879 |
| | 4,118 |
|
| Stockholders’ equity | 20,677 |
| | 21,857 |
|
| Noncontrolling interests | 1,886 |
| | 1,793 |
|
| Total Liabilities and Equity | $ | 60,665 |
| | $ | 55,781 |
|
| Capitalization | | | |
| Total debt | $ | 14,728 |
| | $ | 13,565 |
|
| Stockholders’ equity | 20,677 |
| | 21,857 |
|
| Total | $ | 35,405 |
| | $ | 35,422 |
|
|
| | | | | |
| Capitalization Ratios | | | |
| Total debt | 42 | % | | 38 | % |
| Stockholders’ equity | 58 | % | | 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 September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,494 |
|
| 213 |
|
| 129 |
|
| 230 |
|
| 20 |
|
| 11 |
|
| $ | 3.62 |
|
| $ | 92.59 |
|
| $ | 35.11 |
|
| Algeria | — |
|
| 62 |
|
| 1 |
|
| — |
|
| 6 |
|
| — |
|
| — |
|
| 98.69 |
|
| 65.55 |
|
| Other International | — |
|
| 28 |
|
| — |
|
| — |
|
| 2 |
|
| — |
|
| — |
|
| 100.48 |
|
| — |
|
| Total | 2,494 |
|
| 303 |
|
| 130 |
|
| 230 |
|
| 28 |
|
| 11 |
|
| $ | 3.62 |
|
| $ | 94.56 |
|
| $ | 35.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended September 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,629 |
|
| 152 |
|
| 92 |
|
| 242 |
|
| 14 |
|
| 9 |
|
| $ | 3.33 |
|
| $ | 103.15 |
|
| $ | 38.49 |
|
| Algeria | — |
|
| 62 |
|
| — |
|
| — |
|
| 5 |
|
| — |
|
| — |
|
| 110.95 |
|
| — |
|
| Other International | — |
|
| 31 |
|
| — |
|
| — |
|
| 3 |
|
| — |
|
| — |
|
| 110.54 |
|
| — |
|
| Total | 2,629 |
|
| 245 |
|
| 92 |
|
| 242 |
|
| 22 |
|
| 9 |
|
| $ | 3.33 |
|
| $ | 106.05 |
|
| $ | 38.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,603 |
|
| 197 |
|
| 116 |
|
| 711 |
|
| 54 |
|
| 31 |
|
| $ | 4.27 |
|
| $ | 95.30 |
|
| $ | 38.21 |
|
| Algeria | — |
|
| 64 |
|
| 1 |
|
| — |
|
| 18 |
|
| — |
|
| — |
|
| 105.38 |
|
| 66.14 |
|
| Other International | — |
|
| 27 |
|
| — |
|
| — |
|
| 7 |
|
| — |
|
| — |
|
| 106.06 |
|
| — |
|
| Total | 2,603 |
|
| 288 |
|
| 117 |
|
| 711 |
|
| 79 |
|
| 31 |
|
| $ | 4.27 |
|
| $ | 98.57 |
|
| $ | 38.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended September 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States | 2,655 |
|
| 155 |
|
| 88 |
|
| 725 |
|
| 42 |
|
| 24 |
|
| $ | 3.51 |
|
| $ | 98.48 |
|
| $ | 37.07 |
|
| Algeria | — |
|
| 53 |
|
| — |
|
| — |
|
| 14 |
|
| — |
|
| — |
|
| 109.20 |
|
| — |
|
| Other International | — |
|
| 34 |
|
| — |
|
| — |
|
| 10 |
|
| — |
|
| — |
|
| 108.53 |
|
| — |
|
| Total | 2,655 |
|
| 242 |
|
| 88 |
|
| 725 |
|
| 66 |
|
| 24 |
|
| $ | 3.51 |
|
| $ | 102.23 |
|
| $ | 37.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Daily Volumes MBOE/d |
| Sales Volumes MMBOE |
|
|
|
|
|
|
|
|
|
|
| Quarter Ended September 30, 2014 | 849 |
| 78 |
|
|
|
|
|
|
|
|
|
|
| Quarter Ended September 30, 2013 | 775 |
| 71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended September 30, 2014 | 839 |
| 229 |
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended September 30, 2013 | 773 |
| 211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| 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 September 30, 2014 | | | | | | | | | | | | |
| United States | $ | 830 |
| | $ | 1,817 |
| | $ | 418 |
| | | $ | 15 |
| | $ | (8 | ) | | $ | 1 |
|
| Algeria | — |
| | 565 |
| | 6 |
| | | — |
| | 40 |
| | — |
|
| Other International | — |
| | 255 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 830 |
| | $ | 2,637 |
| | $ | 424 |
| | | $ | 15 |
| | $ | 32 |
| | $ | 1 |
|
| | | | | | | | | | | | | |
| Quarter Ended September 30, 2013 | | | | | | | | | | | | |
| United States | $ | 805 |
| | $ | 1,446 |
| | $ | 325 |
| | | $ | 40 |
| | $ | (63 | ) | | $ | 2 |
|
| Algeria | — |
| | 629 |
| | — |
| | | — |
| | (5 | ) | | — |
|
| Other International | — |
| | 314 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 805 |
| | $ | 2,389 |
| | $ | 325 |
| | | $ | 40 |
| | $ | (68 | ) | | $ | 2 |
|
| | | | | | | | | | | | | |
| Nine Months Ended September 30, 2014 | | | | | | | | | | | |
| United States | $ | 3,038 |
| | $ | 5,125 |
| | $ | 1,208 |
| | | $ | (107 | ) | | $ | (68 | ) | | $ | 3 |
|
| Algeria | — |
| | 1,858 |
| | 13 |
| | | — |
| | 40 |
| | — |
|
| Other International | — |
| | 783 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 3,038 |
| | $ | 7,766 |
| | $ | 1,221 |
| | | $ | (107 | ) | | $ | (28 | ) | | $ | 3 |
|
| | | | | | | | | | | | | |
| Nine Months Ended September 30, 2013 | | | | | | | | | | | |
| United States | $ | 2,547 |
| | $ | 4,175 |
| | $ | 889 |
| | | $ | 91 |
| | $ | (61 | ) | | $ | 7 |
|
| Algeria | — |
| | 1,566 |
| | — |
| | | — |
| | 9 |
| | — |
|
| Other International | — |
| | 1,020 |
| | — |
| | | — |
| | — |
| | — |
|
| Total | $ | 2,547 |
| | $ | 6,761 |
| | $ | 889 |
| | | $ | 91 |
| | $ | (52 | ) | | $ | 7 |
|
|
| | | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Financial and Operating External Guidance |
| As of October 28, 2014 |
| | | | | |
| | | 4th Qtr | | Total Year |
| | | Guidance * | | Guidance * |
| | | | | | | | | |
| | | Units | | Units |
| | | | | | | | | |
| Total Sales Volumes (MMBOE) | | 77 |
| — |
| 79 |
| | 304 |
| — |
| 306 |
|
| Total Sales Volumes (MBOE/d) | | 837 |
| — |
| 859 |
| | 833 |
| — |
| 838 |
|
| | | | | | | | | |
| Crude Oil (MBbl/d) | | 298 |
| — |
| 304 |
| | 287 |
| — |
| 289 |
|
| | | | | | | | | |
| United States | | 211 |
| — |
| 215 |
| | 200 |
| — |
| 201 |
|
| Algeria | | 78 |
| — |
| 79 |
| | 68 |
| — |
| 69 |
|
| Ghana | | 9 |
| — |
| 10 |
| | 19 |
| — |
| 19 |
|
| | | | | | | | | |
| Natural Gas (MMcf/d) | | | | | | | | |
| | | | | | | | | |
| United States | | 2,500 |
| — |
| 2,550 |
| | 2,580 |
| — |
| 2,590 |
|
| | | | | | | | | |
| Natural Gas Liquids (MBbl/d) | | | | | | | | |
| | | | | | | | | |
| United States | | 115 |
| — |
| 122 |
| | 116 |
| — |
| 117 |
|
| Algeria | | 5 |
| — |
| 6 |
| | 1 |
| — |
| 2 |
|
| | | | | | | | | |
| | | | | | | | | |
| | | $ / Unit | | $ / Unit |
| Price Differentials vs NYMEX (w/o hedges) | | | | | | | | |
| | | | | | | | | |
| Crude Oil ($/Bbl) | | (4.00 | ) | — |
| (0.00) |
| | (1.75 | ) | — |
| (0.75 | ) |
| | | | | | | | | |
| United States | | (6.00 | ) | — |
| (2.00 | ) | | (4.75 | ) | — |
| (3.75 | ) |
| Algeria | | 4.00 |
| — |
| 6.00 |
| | 5.25 |
| — |
| 5.75 |
|
| Ghana | | 4.00 |
| — |
| 6.00 |
| | 6.25 |
| — |
| 6.75 |
|
| | | | | | | | | |
| Natural Gas ($/Mcf) | | | | | | | | |
| | | | | | | | | |
| United States | | (0.40 | ) | — |
| (0.30 | ) | | (0.35 | ) | — |
| (0.30 | ) |
| | | | | | | | | |
| * All volumes exclude the impact from China and Pinedale/Jonah. | | | | | | | | |
|
| | | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Financial and Operating External Guidance |
| As of October 28, 2014 |
| | | | | |
| | | 4th Qtr | | Total Year |
| | | Guidance * | | Guidance * |
| | | | | | | | | |
| | | $ MM | | $ MM |
| Other Revenues | | | | | | | | |
| Marketing and Gathering Margin | | 55 |
| — |
| 65 |
| | 215 |
| — |
| 225 |
|
| Minerals and Other | | 60 |
| — |
| 70 |
| | 210 |
| — |
| 220 |
|
| | | | | | | | | |
| | | | | | | | | |
| | | $ / BOE | | $ / BOE |
| Costs and Expenses | | | | | | | | |
| Oil & Gas Direct Operating | | 3.75 |
| — |
| 3.95 |
| | 3.75 |
| — |
| 3.80 |
|
| Oil & Gas Transportation/Other | | 4.00 |
| — |
| 4.20 |
| | 3.85 |
| — |
| 3.90 |
|
| Depreciation, Depletion, and Amortization | | 14.00 |
| — |
| 14.50 |
| | 14.45 |
| — |
| 14.55 |
|
| Production Taxes (% of Product Revenue) | | 9.0 | % | — |
| 10.0 | % | | 8.5 | % | — |
| 9.0 | % |
| | | | | | | | | |
| | | $ MM | | $ MM |
| | | | | | | | | |
| General and Administrative | | 275 |
| — |
| 325 |
| | 1,260 |
| — |
| 1,310 |
|
| Exploration Expense | | | | | | | | |
| Non-Cash | | 200 |
| — |
| 275 |
| | 925 |
| — |
| 1,000 |
|
| Cash | | 125 |
| — |
| 150 |
| | 380 |
| — |
| 405 |
|
| Interest Expense (net) | | 205 |
| — |
| 210 |
| | 780 |
| — |
| 785 |
|
| Other (Income) Expense - Includes Noncontrolling Interests | | 50 |
| — |
| 60 |
| | 180 |
| — |
| 190 |
|
| | | | | | | | | |
| Tax Rate | | | | | | | | |
| Algeria (All current) | | 50 | % | — |
| 60 | % | | 45 | % | — |
| 55 | % |
| Rest of Company (0% Current for Q4 and 30% Current for FY) | | 30 | % | — |
| 35 | % | | 35 | % | — |
| 45 | % |
| | | | | | | | | |
| | | | | | | | | |
| Avg. Shares Outstanding (MM) | | | | | | | | |
| Basic | | 506 |
| — |
| 508 |
| | 505 |
| — |
| 506 |
|
| Diluted | | 508 |
| — |
| 510 |
| | 508 |
| — |
| 509 |
|
| | | | | | | | | |
| | | | | | | | | |
| Capital Investment (Excluding Western Gas Partners, LP) | $ MM | | $ MM |
| | | | | | | | | |
| APC Capital Expenditures | | 2,000 |
| — |
| 2,200 |
| | 8,600 |
| — |
| 8,800 |
|
| | | | | | | | | |
| * Excludes items affecting comparability | | | | | | | | |
|
| | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Commodity Hedge Positions (Excluding Natural Gas Basis) |
| As of October 28, 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 October 28, 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 September 30, 2014 | | Quarter Ended September 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 | 2,340 |
| | 159 |
| | 124 |
| | 673 |
| | 2,337 |
| | 98 |
| | 84 |
| | 572 |
|
| Deepwater Gulf of Mexico | 154 |
| | 46 |
| | 5 |
| | 77 |
| | 203 |
| | 43 |
| | 5 |
| | 82 |
|
| International and Alaska | — |
| | 98 |
| | 1 |
| | 99 |
| | — |
| | 92 |
| | — |
| | 92 |
|
| Same-Store Sales | 2,494 |
| | 303 |
| | 130 |
| | 849 |
| | 2,540 |
| | 233 |
| | 89 |
| | 746 |
|
| China and Pinedale/Jonah | — |
| | — |
| | — |
| | — |
| | 89 |
| | 12 |
| | 3 |
| | 29 |
|
| Total | 2,494 |
| | 303 |
| | 130 |
| | 849 |
| | 2,629 |
| | 245 |
| | 92 |
| | 775 |
|
| | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2014 | | Nine Months Ended September 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 | 2,393 |
| | 143 |
| | 110 |
| | 652 |
| | 2,287 |
| | 97 |
| | 79 |
| | 557 |
|
| Deepwater Gulf of Mexico | 201 |
| | 44 |
| | 6 |
| | 84 |
| | 281 |
| | 46 |
| | 6 |
| | 99 |
|
| International and Alaska | — |
| | 96 |
| | 1 |
| | 97 |
| | — |
| | 87 |
| | — |
| | 87 |
|
| Same-Store Sales | 2,594 |
| | 283 |
| | 117 |
| | 833 |
| | 2,568 |
| | 230 |
| | 85 |
| | 743 |
|
| China and Pinedale/Jonah | 9 |
| | 5 |
| | — |
| | 6 |
| | 87 |
| | 12 |
| | 3 |
| | 30 |
|
| Total | 2,603 |
| | 288 |
| | 117 |
| | 839 |
| | 2,655 |
| | 242 |
| | 88 |
| | 773 |
|
| | | | | | | | | | | | | | | | |
