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What Are APC’s Oil Volume Growth Forecasts after GOM Acquisition?

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Free cash flows

Anadarko Petroleum (APC) expects $3 billion in incremental free cash flow from its Gulf of Mexico operations after the acquisition of Freeport-McMoRan’s (FCX) Gulf of Mexico assets from 2017 through 2021 at current commodity strip prices.

APC increased its 2016 capital guidance to $2.8 billion–$3 billion from $2.6 billion–$2.8 billion, reflecting increased activity in the DJ and Delaware basins, boosted by APC’s free cash flow expectations.

Assuming a $50–$60 oil price environment, the increased activity is expected to result in a compounded annual growth rate of 10%–12% in APC’s oil volumes over the next five years.

In the next part, we’ll take a look at analyst targets for Anadarko for the next 12 months.

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