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Anadarko Petroleum’s Operational Performance in 3Q17

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Anadarko’s 3Q17 production

Anadarko Petroleum’s (APC) total production in 3Q17 was 626 Mboepd (thousand barrels of oil equivalent per day). By comparison, its total production was 780 Mboepd in 3Q16. In 2Q17, it was 631 Mboepd.

Anadarko Petroleum has been focusing on shifting its production mix to oil to achieve higher margins. It noted that it improved its oil production mix to 57% compared to 42% in 3Q16, thereby significantly improving its margins per barrel.

Adjusted EBITDAX (earnings before interest, tax, depreciation, depletion, amortization, and exploration expenses) per barrel of equivalent, a non-GAAP (generally accepted accounting principles) measure, was $21.29 in 3Q17 compared to $15.89 in 3Q16, an improvement of 34%.

APC expects its margins to continue to improve following the sale of its Moxa gas asset as it continues to focus on its investments in oil plays. In 3Q17, it agreed to sell its Moxa gas assets in southwest Wyoming to an undisclosed party for ~$350 million.

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APC’s 3Q17 operational highlights

In the DJ (Denver-Julesberg) Basin, APC’s oil volumes for 3Q17 averaged 83,000 barrels per day. The company noted that it expects an exit rate production of 100,000 barrels per day. In the Delaware Basin, it’s expecting an exit rate production of ~50,000 barrels of oil per day.

Anadarko’s oil volumes averaged 126,000 bpd (barrels per day) in the Deepwater Gulf of Mexico region. The company expects to exit 2017 with a production rate of more than 130,000 bpd in the deepwater Gulf of Mexico. It noted that production of ~840,000 barrels of oil equivalent was deferred in 3Q17 due to Hurricanes Harvey and Irma.

APC’s international and Alaska sales volume averaged 102,000 barrels per day in 3Q17. The company noted that it has entered into a 20-year sale and purchase agreement with PTT Public Company Limited of Thailand for 2.6 million tons of LNG (liquid natural gas) per annum. The agreement is pending approval of the government of Thailand.

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