What Are Anadarko Petroleum’s Production Expectations and Goals?

Anadarko’s 2017 production guidance

Anadarko Petroleum (APC) is forecasting a ~13% YoY (year-over-year) rise in its production in 2017 compared with a YoY decline of 31% in 2016.

What Are Anadarko Petroleum’s Production Expectations and Goals?

Oil growth forecasts

By 2021, Anadarko Petroleum expects to double its oil (USO) (DBO) production in the DJ Basin and the Delaware Basin to at least 600 Mbopd (thousand barrels of oil per day) from 287 Mbopd in 2016 and an estimated ~360 Mbopd in 2017. The compound annual growth rate (or CAGR) in its oil volumes between 2016 and 2021 is expected to be ~15%, assuming a $50–$60 per barrel oil price environment.

APC’s Gulf of Mexico plans

In the Gulf of Mexico, APC expects to profit from a full year of production from its recently acquired Freeport-McMoRan assets. Other companies operating in the Gulf of Mexico include Noble Energy (NBL) and Hess (HES). The properties doubled Anadarko’s production volumes to over 160,000 boe (barrels of oil equivalent) per day at the end of 2017.

Anadarko Petroleum’s CEO noted in the company’s 4Q16 earnings call, “Through the acquisition of Freeport’s Gulf of Mexico properties, we have the largest operated infrastructure in position in the deepwater Gulf today, creating a tremendous cash-generating machine to fund future growth.”