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.
Anadarko Petroleum (APC) says planned capital spending will reach $8.1B-$8.5B this year, with ~60% earmarked for drilling more oil wells onshore in North America.
APC expects the capital spending plans will enable it to increase sales volume 6%-7% Y/Y, excluding the impacts of divestitures, driven by an expected 40K bbl/day increase in oil production.
APC also expects to increase its total U.S. onshore sales volumes by more than 10% to more than 625K boe/day this year, driven by its Wattenberg horizontal drilling program in Colorado, its Eagleford Shale development in south Texas, and other liquids-rich growth plays.
Oil and gas companies will be required to install technology that captures 95% of gas leakage from pipes and equipment, a major source of methane emissions.
Anadarko (APC), Noble Energy (NBL) and Encana (ECA) supported the move, agreeing that some common sense rules were needed to allow the industry to move forward, but the Colorado Oil and Gas Association says the regulations will prove more expensive than believe, upwards of $100M rather than $40M.
Worries over potential liabilities from the Tronox bankruptcy have burdened shares of Anadarko Petroleum (APC +1.5%) lately, but today’s news that APC had sold its Chinese subsidiary is favorably received by analysts.
Citigroup views the sale positively, particularly as it adds to APC's cash balance ahead of a potential settlement or ultimate judgment on Tronox; proceeds from the deal will be fully repatriated pack to the U.S. with the tax leakage likely below the 25% maximum rate in China and with minimal effect in the U.S.
Mizuho also believes APC is wise in marshaling excess capital; the firm also notes APC is netting ~$98K per flowing barrel, an attractive price vs. comparable Bohai Bay transactions (Briefing.com).
Hong Kong-listed oil trader and shipping firm Brightoil has held talks with Anadarko Petroleum (APC) and Newfield Exploration (NFX) to buy their China operations, Reuters reports.
Brightoil has been searching for upstream investment opportunities in China and overseas for several years; trading in its shares has been suspended since Feb. 11 pending an announcement of a "very substantial acquisition."
APC owns a ~35% interest in production and development projects in China's Bohai Bay, and has a 50% interest in South China Sea exploration acreage.
In a December ruling, U.S. Bankruptcy Judge Allan Gropper suggested a range of $5.2B-$14.5B to pay for the clean up of contaminated properties; APC's Q4 earnings report accounted for a payment of just $850M.
Freezing weather across the U.S. this winter have pushed demand for natural gas to all-time highs, but at the same time a number of companies are saying the foul weather is hurting production.
The latest is Chesapeake Energy (CHK), whose oil and gas output in December was well below its expectations due to "weather challenges" that continued into January and February, CEO Doug Lawler told analysts on today's earnings call.
Anadarko (APC) said yesterday during its call that its operations in Colorado were finally returning to normal.
Estimated U.S. natural gas output is running ~800M cf/day lower than the 30-day moving average and is off 1.5B cf/day from the start of this year when temperatures were more moderate.
The EPS miss was driven by exploration expense that was $300M more than expected, but production was ahead of guidance, as oil, gas and NGL volumes all beat estimates, the firm says.
DD&A was significantly lower than forecast, and cash costs came in lower than expected; pricing was roughly in line on a blended basis, and NGL pricing was strong, with realizations of over $40/bbl.
However, J.P. Morgan finds APC’s handling of the Tronox liabilities curious, noting that its given range of probable losses do not include possible interest, attorneys’ fees or other costs, which could be material; in the case of a settlement, APC expects the payment would be substantially greater than the $850M accrual.
Anadarko Petroleum (APC) -0.2% AH after unadjusted earnings swung to a Q4 loss on contingent losses linked to a legal dispute related to the company's 2006 acquisition of Kerr-McGee.
APC believes the costs of claims related to its Kerr-McGee subsidiary - which eventually was spun off into Tronox - could range from $850M-$5.2B, although its reported Q4 loss accounted for a payment of just $850M; a federal judge has ruled APC could be liable for more than $14B.
APC's loss came as it reported a record level of oil and gas sales volumes for 2013, hitting an average of 781K boe/day, up 7% Y/Y, but Q4 revenue from oil and gas slipped to $3.34B from $3.41B a year earlier on softer prices.