Global Oil Anadarko announces 2017 initial capital program and guidance

Anadarko Petroleum has announced its 2017 initial capital expectations and guidance. The company will also host an investor conference call tomorrow to discuss recent updates and expectations, including:

HIGHLIGHTS

• Announced 2017 initial capital program of $4.5 to $4.7 billion
• Increased Wolfcamp A (Delaware Basin) net resources by 50 percent to more than 3 billion BOE
• Increased DJ Basin development area net resources by 33 percent to more than 2 billion BOE
• Improved margins per barrel significantly as a result of higher oil-production mix
• Completed Eagleford divestiture increasing cash on hand as of March 3 to more than $5 billion
• Expected 25-percent increase in oil sales volumes in 2017 relative to the prior year

‘Our 2017 initial capital program is designed to leverage our streamlined portfolio and sharpened focus on higher-margin oil production, which is expected to generate stronger returns and substantial cash flow to fund material growth over the next five years,’ said Al Walker, Anadarko Chairman, President and CEO. ‘With a growing lower-risk resource base of more than 6.5 billion BOE (barrels of oil equivalent) in our premier U.S. focus areas of the Delaware and DJ basins, and the deepwater Gulf of Mexico, I believe Anadarko is poised to deliver exceptional value in 2017 and well beyond.

‘In 2017, we plan to allocate approx. 80 percent of our total capital program toward our U.S. onshore upstream and midstream activities, and our expanded position in the deepwater Gulf of Mexico,’ added Walker. ‘These investments provide the foundation for our increased five-year oil growth expectations of more than 15 percent on a compounded annual basis at current prices, and we are prepared to be flexible throughout the year if we see the opportunity in the Delaware and DJ basins to accelerate activity to capture additional value. Furthermore, sustained oil production from our deepwater Gulf of Mexico, Algeria and Ghana assets is expected to generate significant free cash flow to support growth and fund future value creation through exploration success and our LNG business.'(Source: Anadarko)