APC
$43.23
Anadarko Petroleum
($2.04)
(4.51%)
Earnings Details
4th Quarter December 2018
Tuesday, February 05, 2019 4:10:00 PM
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Summary

Anadarko Petroleum Misses

Anadarko Petroleum (APC) reported 4th Quarter December 2018 earnings of $0.38 per share on revenue of $3.3 billion. The consensus earnings estimate was $0.57 per share on revenue of $3.5 billion. The Earnings Whisper number was $0.49 per share. Revenue grew 14.3% on a year-over-year basis.

Anadarko Petroleum Corp is engaged in the exploration and production of oil and natural gas. The Company’s three operating segments are: Oil and gas exploration and production, Midstream and Marketing.

Results
Reported Earnings
$0.38
Earnings Whisper
$0.49
Consensus Estimate
$0.57
Reported Revenue
$3.35 Bil
Revenue Estimate
$3.49 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Anadarko Announces 2018 Fourth-Quarter And Full-Year Results

HOUSTON, Feb. 5, 2019 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2018 fourth-quarter results, reporting net income attributable to common stockholders of $102 million, or $0.21 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 $82 million, or $0.17 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the fourth quarter of 2018 was $1.6 billion.

For the year ended Dec. 31, 2018, Anadarko reported net income attributable to common stockholders of $615 million, or $1.20 per share (diluted). Full-year 2018 net cash provided by operating activities totaled $5.9 billion.

2018 HIGHLIGHTS

  • Reached $3.75 billion of total share repurchases, representing 12 percent of shares outstanding
  • Retired more than $600 million of debt during the year
  • Increased the per-share dividend from 5 cents to 30 cents
  • Announced Western Gas simplification transaction and $4 billion midstream asset sale
  • Significantly expanded Delaware Basin oil, natural gas, and water infrastructure
  • Positioned Mozambique LNG for expected sanctioning decision in the first half of 2019

"In 2018, we delivered on our commitment to increase the return of cash to investors through repurchasing stock, retiring debt and increasing our dividend," said Anadarko Chairman and CEO Al Walker. "As we look to 2019 and beyond, we remain focused on enhancing our capital efficiency by further improving our per-barrel margins and lowering our free cash flow breakeven oil price to continue meeting our cash-return objectives. We believe our portfolio and people give us an industry-leading ability to accomplish this while maintaining the financial flexibility to invest in our future as we anticipate progressing toward a final investment decision (FID) in the Mozambique LNG project in the first half of the year."

SALES VOLUME AND PROVED RESERVES
Anadarko's full-year sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 243 million barrels of oil equivalent (BOE), or an average of 666,000 BOE per day. Fourth-quarter 2018 sales volume of oil, natural gas and NGLs averaged approximately 701,000 BOE per day.

In 2018, Anadarko organically added 284 million BOE of proved reserves before the effects of price revisions. Anadarko's costs incurred were $4.6 billion. The company's oil and natural gas exploration and development costs were $4.5 billion.(2) The company estimates its proved reserves at year-end 2018 totaled 1.47 billion BOE, with 78 percent of its reserves categorized as proved developed. At year-end 2018, Anadarko's proved reserves were comprised of 63 percent liquids and 37 percent natural gas.

OPERATING HIGHLIGHTS
In West Texas, Anadarko's Delaware Basin oil sales volume averaged 75,000 barrels per day, with total volume averaging 127,000 BOE per day, in the fourth quarter of 2018. Much of the company's focus in 2018 in the Delaware Basin centered on expanding its extensive network of infrastructure to facilitate the company's transition to pad development. During the year, Anadarko successfully started up the Reeves and Loving Regional Oil Treating Facilities, which added 120,000 barrels per day of oil-processing capacity, and in the fourth quarter, Western Gas started up its first train at the Mentone gas-processing plant. These activities support Anadarko's Silvertip-A campaign, which is the company's first multi-well and multi-pad development with optimized infrastructure. In 2019, Anadarko expects to average approximately 10 operated rigs and five completion crews with plans to bring more than 150 operated wells to sales.

Anadarko's DJ Basin assets in Colorado averaged approximately 272,000 BOE per day during the fourth quarter of 2018, which included 102,000 barrels of oil per day. In 2019, the company expects to average four operated rigs and three completion crews while bringing more than 250 operated wells to sales.

In August 2018, Anadarko announced new details about its high-potential position in Wyoming's Powder River Basin. The company's core position includes approximately 300,000 gross acres with significant stacked-oil potential. Anadarko's 2019 activity in the Powder River Basin will focus on appraisal activity targeting the Turner formation, as the company expects to average one operated rig and completion crew and deliver more than 10 operated appraisal wells to sales.

Anadarko's Gulf of Mexico sales volume averaged 142,000 BOE per day in the fourth quarter of 2018, which included 120,000 barrels of oil per day. The company's leading infrastructure position continues to provide highly economic tieback opportunities, including new wells and developments at its 100-percent-owned Constitution, Horn Mountain, Holstein and Marlin platforms. This year, Anadarko plans to operate up to two drillships and two platform rigs and bring approximately 10 wells to sales in the areas near its Constellation, Holstein, Horn Mountain, K2, Lucius, and North Hadrian producing assets.

Anadarko's international sales volume averaged 102,000 barrels per day during the fourth quarter of 2018. The company also continued to make significant progress with its Mozambique LNG project, announcing Sale and Purchase Agreements (SPAs) with Tokyo Gas Co., Ltd; Centrica LNG Company Ltd., a subsidiary of Centrica plc; Shell International Trading Middle East Ltd; and CNOOC Gas and Power Singapore Trading & Marketing Pte. Ltd. These SPAs, coupled with the project's progress toward securing financing, and preparation of the onshore location for development, continue to position Anadarko to take FID during the first half of this year.

OPERATIONS REPORT
For additional details on Anadarko's fourth-quarter 2018 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.

FINANCIAL HIGHLIGHTS
The company ended 2018 with $1.3 billion of cash. Since September 2017, Anadarko has announced equity-buyback and debt-reduction programs totaling $7 billion. The company repurchased $250 million of its common stock and retired $500 million of debt during the fourth quarter of 2018, bringing total share repurchases to $3.75 billion and total debt retirement to more than $600 million under these programs. During 2018, the company also increased its per-share dividend 500 percent, from 5 cents to 30 cents.

"We have returned tremendous value to our shareholders totaling more than $4.5 billion through share repurchases, dividend increases and debt reductions, and we expect to complete the remaining $1.25 billion of authorized share repurchases and $1.4 billion of debt reduction by mid-2020," said Walker. "While we expect market volatility to continue for some time, we are maintaining our previously announced capital expectations, which enable us to operate within anticipated discretionary cash flow at $50 oil and remain committed to our durable strategy of maximizing capital efficiency and enhancing returns on a multi-year basis."

2019 CAPITAL EXPECTATIONS AND SALES-VOLUME GUIDANCE
Anadarko's 2019 guidance remains the same as announced in November 2018. The company expects full-year capital investments in the range of $4.3 to $4.7 billion.(3)

2019 Capital Expectations(3)
















By Area

Billions


By Type

















U.S. Onshore*

$

3.15



Resource Plays*

70

%


Deepwater Gulf of Mexico

0.50



Conventional Oil**

16

%


Algeria and Ghana

0.20



Exploration and LNG

10

%


Exploration

0.25



Corporate

4

%


LNG

0.20






* Delaware, DJ, and Powder River basins, and other. Also includes approximately $80 million of midstream investment prior to the Western Gas Partners, LP (WES) midstream transaction, which is expected to close in the first quarter 2019

** Deepwater Gulf of Mexico, Algeria, and Ghana operations

Note: All amounts are approximates.

 

Sales-Volume Expectations(4)



2018 Actuals


2019 Expectations





Total (MMBOE)

243


260 - 270





Oil (MBOPD)

383


410 - 435

CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host an investor conference call on Wednesday, Feb. 6, 2019, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2018 results as well as plans and expectations for 2019. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 7656732. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast, 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
Twelve pages of summary financial data follow, including costs incurred, proved reserves, 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) 

Does not include capital investments made by Western Gas Partners, LP (NYSE: WES).



(4) 

Amounts are divestiture adjusted.

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 finalize year-end reserves; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to meet financial and operating guidance; to improve margins and enhance returns; to timely complete and commercially operate the projects and drilling prospects identified in this news release; to consummate the transaction described in this news release and realize the expected benefits; to successfully complete the share-repurchase and debt-reduction programs; and to successfully plan, secure additional government and partner approvals, enter into long-term sales contracts, take FID and the timing thereof, finance, build, and operate the necessary infrastructure and LNG park in Mozambique. See "Risk Factors" in the company's 2017 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, mike.pearl@anadarko.com, 832.636.3271
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Jon VandenBrand, jon.vandenbrand@anadarko.com, 832.636.1007

MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 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 December 31, 2018



Before


After


Per Share

millions except per-share amounts


Tax


Tax


(diluted)

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




$

102



$

0.21


Adjustments for certain items affecting comparability







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


$

480



370



0.75


Gains (losses) on divestitures, net


(11)



(8)



(0.02)


Lower-of-cost-or-market inventory adjustments


(21)



(17)



(0.04)


Impairments - Producing properties (after noncontrolling interest)


(431)



(331)



(0.67)


Contingency adjustments


(15)



(12)



(0.03)


Reorganization-related charges


(40)



(31)



(0.06)


Impact of tax reform legislation




(100)



(0.20)


Change in uncertain tax positions




47



0.10


Certain items affecting comparability


$

(38)



(82)



(0.17)


Adjusted net income (loss) (Non-GAAP)




$

184



$

0.38



*

Includes $629 million related to commodity derivatives, $(148) million related to interest-rate derivatives and $(1) million related to gathering, processing, and marketing sales.

 



Quarter Ended December 31, 2017



Before


After


Per Share

millions except per-share amounts


Tax


Tax


(diluted)

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




$

976



$

1.80


Adjustments for certain items affecting comparability







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


$

(168)



(105)



(0.20)


Gains (losses) on divestitures, net


(141)



(83)



(0.15)


Impairments







Producing properties


(25)



(16)



(0.03)


Exploration assets


(24)



(15)



(0.03)


Early termination of rig


(39)



(25)



(0.05)


Change in uncertain tax positions




(56)



(0.10)


Impact of tax reform legislation




1,170



2.18


Certain items affecting comparability


$

(397)



870



1.62


Adjusted net income (loss) (Non-GAAP)




$

106



$

0.18



*

Includes $(171) million related to commodity derivatives, $(1) million related to interest-rate derivatives, and $4 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.


Years Ended
December 31,

millions

2018


2017

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

$

615



$

(456)


Interest expense

947



932


Income tax expense (benefit)

733



(1,477)


Depreciation, depletion, and amortization

4,254



4,279


Exploration expense (1)

459



2,535


(Gains) losses on divestitures, net

(20)



(674)


Impairments

800



408


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

(407)



156


Restructuring charges

53



21


(Gains) losses on early extinguishment of debt

(2)



2


Consolidated Adjusted EBITDAX (Margin) (Non-GAAP)

$

7,432



$

5,726


Total barrels of oil equivalent (MMBOE)

243



245


Consolidated Adjusted EBITDAX (Margin) per BOE

$

30.58



$

23.37




(1)

Includes restructuring charges of $20 million for the year ended December 31, 2018.

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.

millions


Year Ended
December 31, 2018

Costs incurred (GAAP)*


$

4,569


Asset retirement obligation liabilities incurred


(357)


Cash expenditures for asset retirement obligations


263


Oil and natural gas exploration and development costs (Non-GAAP)


$

4,475




*

Includes $202 million of unproved property acquisitions.

Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures

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




December 31, 2018








Anadarko




Anadarko


WGP*


excluding

millions



Consolidated


Consolidated


WGP

Total debt (GAAP)



$

16,417



$

4,815



$

11,602


Less cash and cash equivalents



1,295



92



1,203


Net debt (Non-GAAP)



$

15,122



$

4,723



$

10,399

















Anadarko






Anadarko


excluding

millions





Consolidated


WGP

Net debt





$

15,122



$

10,399


Total equity





10,943



8,496


Adjusted capitalization





$

26,065



$

18,895














Net debt to adjusted capitalization ratio






58

%



55

%



*

Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko, and Western Gas Partners, LP (WES) is a consolidated subsidiary of WGP.

 

Anadarko Petroleum Corporation

Cash Flow Information

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

millions

2018


2017


2018


2017

Cash Flows from Operating Activities








Net income (loss)

$

134



$

1,039



$

752



$

(211)


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








Depreciation, depletion, and amortization

1,131



1,044



4,254



4,279


Deferred income taxes

(2)



(1,143)



139



(2,169)


Dry hole expense and impairments of unproved properties

34



77



246



2,221


Impairments

481



25



800



408


(Gains) losses on divestitures, net

11



141



(20)



(674)


(Gains) losses on early extinguishment of debt

(4)





(2)



2


Total (gains) losses on derivatives, net

(368)



164



138



131


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

(112)



4



(545)



25


Other

72



78



294



303


Changes in assets and liabilities

250



(39)



(127)



(306)


Net Cash Provided by (Used in) Operating Activities

$

1,627



$

1,390



$

5,929



$

4,009


Net Cash Provided by (Used in) Investing Activities

$

(1,323)



$

(1,002)



$

(5,982)



$

(1,030)


Net Cash Provided by (Used in) Financing Activities

$

(871)



$

(1,086)



$

(3,177)



$

(1,613)










Capital Expenditures








Exploration and Production and other*

$

897



$

1,008



$

4,264



$

3,884


WES Midstream

258



294



1,178



956


Other Midstream**

85



202



743



460


Total

$

1,240



$

1,504



$

6,185



$

5,300




*

The year-ended December 31, 2018 includes $181 million, of which $176 million was unbudgeted, related to Powder River Basin acquisitions.

** 

Excludes WES.

 

Anadarko Petroleum Corporation

(Unaudited)



Three Months Ended


Twelve Months Ended

Summary Financial Information

December 31,


December 31,

millions except per-share amounts

2018


2017


2018


2017

Consolidated Statements of Income








Revenues and Other








Oil sales

$

2,242



$

1,900



$

9,206



$

6,552


Natural-gas sales

323



258



1,005



1,348


Natural-gas liquids sales

279



301



1,271



1,069


Gathering, processing, and marketing sales

425



583



1,588



2,000


Gains (losses) on divestitures and other, net

80



(113)



312



939


Total

3,349



2,929



13,382



11,908


Costs and Expenses








Oil and gas operating

308



250



1,153



988


Oil and gas transportation

245



216



878



914


Exploration

79



169



459



2,535


Gathering, processing, and marketing

302



451



1,047



1,552


General and administrative

270



226



1,084



994


Depreciation, depletion, and amortization

1,131



1,044



4,254



4,279


Production, property, and other taxes

189



133



826



582


Impairments

481



25



800



408


Other operating expense

74



64



262



221


Total

3,079



2,578



10,763



12,473


Operating Income (Loss)

270



351



2,619



(565)


Other (Income) Expense








Interest expense

244



252



947



932


(Gains) losses on early extinguishment of debt

(4)





(2)



2


(Gains) losses on derivatives, net

(373)



168



130



135


Other (income) expense, net

43



3



59



54


Total

(90)



423



1,134



1,123


Income (Loss) Before Income Taxes

360



(72)



1,485



(1,688)


Income tax expense (benefit)

226



(1,111)



733



(1,477)


Net Income (Loss)

134



1,039



752



(211)


Net income (loss) attributable to noncontrolling interests

32



63



137



245


Net Income (Loss) Attributable to Common Stockholders

$

102



$

976



$

615



$

(456)


Per Common Share








Net income (loss) attributable to common stockholders—basic

$

0.21



$

1.80



$

1.20



$

(0.85)


Net income (loss) attributable to common stockholders—diluted

$

0.21



$

1.80



$

1.20



$

(0.85)


Average Number of Common Shares Outstanding—Basic

493



537



504



548


Average Number of Common Shares Outstanding—Diluted

494



537



504



548










Exploration Expense








Dry hole expense

$

32



$

25



$

87



$

1,433


Impairments of unproved properties

1



52



159



788


Geological and geophysical, exploration overhead, and other expense

46



92



213



314


Total

$

79



$

169



$

459



$

2,535


 

Anadarko Petroleum Corporation

(Unaudited)



December 31,


December 31,

millions

2018


2017

Condensed Balance Sheets




Cash and cash equivalents

$

1,295



$

4,553


Accounts receivable, net of allowance

2,026



1,829


Other current assets

474



380


Net properties and equipment

28,615



27,451


Other assets

2,336



2,211


Goodwill and other intangible assets

5,630



5,662


Total Assets

$

40,376



$

42,086


Short-term debt - Anadarko*

919



142


Short-term debt - WGP/WES

28




Other current liabilities

3,711



3,764


Long-term debt - Anadarko*

10,683



12,054


Long-term debt - WGP/WES

4,787



3,493


Deferred income taxes

2,437



2,234


Asset retirement obligations

2,847



2,500


Other long-term liabilities

4,021



4,109


Common stock

57



57


Paid-in capital

12,393



12,000


Retained earnings

1,245



1,109


Treasury stock

(4,864)



(2,132)


Accumulated other comprehensive income (loss)

(335)



(338)


Total stockholders' equity

8,496



10,696


Noncontrolling interests

2,447



3,094


Total Equity

10,943



13,790


Total Liabilities and Equity

$

40,376



$

42,086


Capitalization




Total debt

$

16,417



$

15,689


Total equity

10,943



13,790


Total

$

27,360



$

29,479










Capitalization Ratios








Total debt


60

%



53

%

Total equity


40

%



47

%



*

Excludes WES and WGP

 

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 December 31, 2018


















United States

309



1,118



104



30



103



8



$

58.60



$

3.14



$

27.57


Algeria

62





4



5





1



64.41





44.34


Other International

36







3







62.79



0.66




Total

407



1,118



108



38



103



9



$

59.86



$

3.14



$

28.20




















Quarter Ended December 31, 2017


















United States

287



1,064



90



26



98



7



$

54.97



$

2.63



$

34.99


Algeria

54





3



4





1



61.35





45.29


Other International

26







3







60.75






Total

367



1,064



93



33



98



8



$

56.32



$

2.63



$

35.28




















Year Ended December 31, 2018


















United States

294



1,069



98



108



390



35



$

64.01



$

2.57



$

33.46


Algeria

59





5



21





2



70.80





43.25


Other International

32







12







69.63



0.66




Total

385



1,069



103



141



390



37



$

65.51



$

2.57



$

33.93




















Year Ended December 31, 2017


















United States

266



1,309



95



97



478



34



$

49.62



$

2.82



$

29.24


Algeria

61





4



22





2



53.74





35.64


Other International

28







10







53.84






Total

355



1,309



99



129



478



36



$

50.66



$

2.82



$

29.54







































Average Daily Sales Volume

MBOE/d


Sales Volume

MMBOE





























Quarter Ended December 31, 2018

701


64











Quarter Ended December 31, 2017

637


58





























Year Ended December 31, 2018

666


243











Year Ended December 31, 2017

672


245





























 

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 December 31, 2018













United States

$

1,666



$

323



$

262




$

(82)



$

(26)



$


Algeria

366





17









Other International

210













Total

$

2,242



$

323



$

279




$

(82)



$

(26)



$















Quarter Ended December 31, 2017













United States

$

1,450



$

258



$

290




$

(1)



$

5



$


Algeria

305





11









Other International

145













Total

$

1,900



$

258



$

301




$

(1)



$

5



$















Year Ended December 31, 2018











United States

$

6,873



$

1,005



$

1,193




$

(527)



$

(18)



$


Algeria

1,518





78









Other International

815













Total

$

9,206



$

1,005



$

1,271




$

(527)



$

(18)



$















Year Ended December 31, 2017











United States

$

4,818



$

1,348



$

1,010




$

26



$

4



$

(3)


Algeria

1,190





59









Other International

544













Total

$

6,552



$

1,348



$

1,069




$

26



$

4



$

(3)


 

Anadarko Petroleum Corporation

Estimated Year-End Proved Reserves 2018 - 2016















MMBOE


2018


2017


2016

Proved Reserves







Beginning of year


1,439



1,722



2,057


Reserves additions and revisions







Discoveries and extensions


164



114



40


Infill-drilling additions


181



71



69


Drilling-related reserves additions and revisions


345



185



109


Other non-price-related revisions


(61)



59



191


Net organic reserves additions


284



244



300


Acquisition of proved reserves in place




3



97


Price-related revisions


29



92



(147)


Total reserves additions and revisions


313



339



250


Sales in place


(37)



(379)



(294)


Production


(242)



(243)



(291)


End of year


1,473



1,439



1,722


Proved Developed Reserves







Beginning of year


1,127



1,325



1,632


End of year


1,148



1,127



1,325


 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of February 5, 2019













1st-Qtr


Full-Year



Guidance (see Note)


Guidance (see Note)


 Units


 Units










Total Sales Volume (MMBOE)


60



64



260



270


Total Sales Volume (MBOE/d)


667



711



712



740











Oil (MBbl/d)


384



411



410



435











United States


305



325



324



341


Algeria


53



57



56



60


Ghana


26



29



30



34











Natural Gas (MMcf/d)


















United States


1,100



1,175



1,100



1,200











Natural Gas Liquids (MBbl/d)


















United States


96



104



103



111


Algeria


4



5



4



5






















$ / Unit


$ / Unit

Price Differentials vs NYMEX (w/o hedges)


















Oil ($/Bbl)


(0.60)



3.50



(0.70)



3.30











United States


(2.00)



2.00



(2.00)



2.00


Algeria


5.00



9.00



4.00



8.00


Ghana


5.00



9.00



4.00



8.00











Natural Gas ($/Mcf)


















United States


(0.60)



(0.35)



(0.70)



(0.45)











 

Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of February 5, 2019






Note: Guidance excludes items affecting comparability.








1st-Qtr


Full-Year



Guidance (see Note)


Guidance (see Note)



 $ MM


 $ MM

Other Revenues









Marketing and Gathering Margin


145



185



700



800


Minerals and Other


70



90



270



310






















$ / BOE


$ / BOE

Costs and Expenses









Oil & Gas Direct Operating


5.00



5.50



4.40



4.80


Oil & Gas Transportation and Other


3.50



3.70



3.60



3.80


Depreciation, Depletion, and Amortization


16.75



17.50



17.25



18.00


Production Taxes (% of Product Revenue)


6.5

%


7.5

%


6.5

%


7.5

%












$ MM


$ MM










General and Administrative


275



300



1,100



1,200


Other Operating Expense


15



35



35



55


Exploration Expense









Non-Cash




20



120



170


Cash


55



65



190



210


Interest Expense (net)


255



265



1,050



1,090


Other (Income) Expense


(10)



10



(20)



20











Taxes









Algeria  (100% Current)


60

%


70

%


60

%


70

%

Rest of Company  (175% Current/(75)% Deferred for Q1 and 275% Current/(175)% Deferred for Total Year)


20

%


30

%


10

%


20

%










Noncontrolling Interest


70



90



380



420




















Avg. Shares Outstanding (MM)









Basic


490



495



490



495


Diluted


490



495



490



495




















Capital Investment (Excluding Western Gas Partners, LP)

$ MM


$ MM










APC Capital Expenditures


1,100



1,300



4,300



4,700











 

Anadarko Petroleum Corporation

Commodity Hedge Positions

As of February 5, 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 February 5, 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

$250 Million

December 2019 - 2024

December 2019

2.730%

3M LIBOR

Swap

$250 Million

December 2019 - 2029

December 2019

2.856%

3M LIBOR

Swap

$250 Million

December 2019 - 2049

December 2019

2.905%

3M LIBOR

 

Anadarko Petroleum Corporation

Reconciliation of Same-Store Sales


Average Daily Sales Volume


Quarter Ended December 31, 2018


Quarter Ended December 31, 2017


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

189



1,038



95



457



156



934



79



390


Gulf of Mexico

120



80



9



142



119



73



9



140


International

98





4



102



80





3



83


Same-Store Sales

407



1,118



108



701



355



1,007



91



613


Divestitures*









12



57



2



24


Total

407



1,118



108



701



367



1,064



93



637







Year Ended December 31, 2018


Year Ended December 31, 2017


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

172



990



89



426



128



966



79



368


Gulf of Mexico

120



77



9



142



120



102



10



147


International

91





5



96



89





4



93


Same-Store Sales

383



1,067



103



664



337



1,068



93



608


Divestitures*

2



2





2



18



241



6



64


Total

385



1,069



103



666



355



1,309



99



672




















*

Includes Ram Powell, Alaska, Eagleford, Marcellus, Eaglebine, Utah CBM, and Moxa.

 

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SOURCE Anadarko Petroleum Corporation