New York Stock Exchange-listed Anadarko Petroleum Corporation, one of the partners working in Ghana’s Jubilee Oil fields, has announced its financial and operating results for the first-quarter of 2016, including a net loss attributable to common stockholders of $1.034 billion, or $2.03 per share (diluted).
The net loss includes certain items typically excluded by the investment community in published estimates, which in the aggregate decreased net income by $465 million or $0.91 per share (diluted) on an after-tax basis. Net cash used in operating activities in the first quarter of 2016 was $137 million. Discretionary cash flow from operations totaled $486 million.
FIRST-QUARTER 2016 HIGHLIGHTS
• Announced year-over-year capital reduction of approximately 50 percent
• Improved cost structure by $800 million by reducing the dividend and staffing
• Closed monetisations totaling $1.3 billion
• Issued $3.0 billion of new bonds to refinance debt maturing in 2016 and 2017
“During the first quarter, we maintained strong operating performance and continued to improve our cost structure and efficiencies, while taking significant steps to strengthen our financial position without diluting equity,” said Al Walker, Anadarko Chairman, President and CEO.
“Year to date, we’ve closed monetisations totaling $1.3 billion and are currently in the process of advancing another $700-plus million of divestitures. We’ve also removed perceived uncertainty by issuing $3.0 billion of investment-grade bonds to refinance near-term maturities. Additionally, the dividend reduction and the restructuring of our workforce together are expected to provide approximately $800 million of available cash on an annualised basis. These actions combined with our continued focus on financial discipline, operational excellence and best-in-class capital allocation, support our ability to enhance and preserve value in a volatile market environment,” Al Walker added.
• Increased Delaware Basin net resource estimate to more than 2 billion barrels of oil equivalent (BOE)
• Achieved first oil at the Heidelberg development in the deepwater Gulf of Mexico
• Advanced the TEN development with the arrival of the FPSO offshore Ghana
• Successfully drilled the company’s first horizontal deepwater well offshore Côte d’Ivoire
Anadarko’s first-quarter sales volumes of natural gas, oil and natural gas liquids (NGLs) totaled 75 million BOE, or an average of 823,000 BOE per day, on a divestiture-adjusted basis.
Anadarko’s 2016 U.S. onshore capital investments are primarily focused in the Delaware and DJ basins. In the Delaware Basin of West Texas, Anadarko delivered a year-over-year increase in sales volumes of approximately 47 percent, or about 12,000 BOE per day. As previously announced, the company’s successful appraisal and delineation program also resulted in an increase to its net recoverable resource estimate in the basin to more than 2 billion BOE from its previous estimate of more than 1 billion BOE. In the DJ Basin of northeast Colorado, the company achieved a year-over-year sales-volume increase of approximately 11 percent, or about 24,000 BOE per day.
In the Gulf of Mexico, the company increased year-over-year liquids sales volumes in the first quarter by 25 percent, largely driven by achieving first oil at Heidelberg ahead of schedule, continued outperformance at Lucius, and the contributions from our capital-efficient tieback program. Also during the first quarter, the floating production, storage and offloading (FPSO) vessel arrived at the TEN field offshore Ghana. The TEN development is more than 90-percent complete and remains on schedule for first oil in the third quarter of this year. Offshore Côte d’Ivoire, Anadarko continued its successful appraisal program, encountering approximately 100 net feet of vertical pay in the company’s first horizontal deepwater well at Paon-5A. The company plans to drill the Paon-3AR sidetrack well in the second quarter, followed by a drillstem and interference testing programme, as it works to advance the Paon discovery toward commerciality.