uploads///APC

Anadarko Petroleum’s Production in Fiscal 2017

By

Updated

Anadarko’s 2017 production

Anadarko Petroleum’s (APC) total production in fiscal 2017 was 672 Mboed (thousand barrels of oil equivalent per day). In comparison, APC reported total production of 792 Mboed in fiscal 2016.

However, adjusted for divestitures, APC’s production in 2017 was 610 Mboed, compared to divestiture-adjusted production of 536 Mboed in 2016. In 2017, Anadarko sold assets in the Eagle Ford, Marcellus, Eaglebine, and Utah shales, receiving net proceeds of $3.5 billion.

Article continues below advertisement

Crude oil as a percentage of APC’s total production

Since fiscal 2012, crude oil’s share in APC’s total production has increased. At the same time, APC’s total production has declined since 2012, as you can see in the image above. In 2017, APC’s crude oil volumes had been 355 Mbbl/d. In comparison, crude oil volumes had been 233 Mbbl/d in 2012. A year ago, APC’s crude oil volumes had been 316 Mbbl/d.

APC has been focusing on shifting its production mix—focusing its operations in the DJ and Delaware basins as well as the Deep Water Gulf of Mexico—to oil in order to achieve higher margins. In line with this strategy, we can see that crude oil as a percentage of its total production has been rising since 2012. In fiscal 2017, crude oil made up 52.8% of total production and liquids (crude oil plus natural gas liquids made up 67.5% of the total production).

APC’s 2018 production expectations

APC’s production guidance range for 2018 is 652 Mboed–679 Mboed or a midpoint of 665.5 Mboed. Lower 2018 production estimates resulted from asset divestments. APC’s asset divestitures in 2017 totaled more than $4.0 billion during the year. Before the year ended, Anadarko divested its non-operated interest in its Alaska assets for ~$400 million.

Advertisement

More From Market Realist