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Released February 05, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. oil and gas exploration and production company Anadarko Petroleum Corporation (NYSE:APC) (The Woodlands, Texas) reported a steep drop in results for fourth-quarter and full-year 2013, as higher operational, transportation and exploration expenses, as well as losses related to the troubled spinoff of Tronox Incorporated, offset record sales volumes from major horizontal growth plays. The company reported a net loss of $770 million for the quarter, compared with net income of $203 million in fourth-quarter 2012. For the year, Anadarko reported net income of $801 million, compared with $2.39 billion in 2012.
Total revenues stood at $3.34 billion for the quarter, a 2.11% decrease from the same period in 2013, and $14.58 billion for the year, an 8.72% increase from 2012. Sales volumes of natural gas, crude oil and natural gas liquids in 2013 averaged 781,000 barrels of oil equivalent (BOE) per day, a 6.69% increase from 2012, and hit a record full-year total of 285 million BOE. The company also added 551 million BOE of proved reserves during the year, with the total estimated to be 2.79 billion BOE. (Anadarko's proved reserves stand at 55% natural gas and 45% liquids.)
Record production in plays such as the Wattenberg Field, Eagle Ford Shale, East Texas/North Louisiana Horizontal and Marcellus Shale drove a 25% increase in U.S. onshore oil volumes from 2012. The Southern and Appalachia regions alone saw a 59,000-BOE increase.
Among the factors contributing to the net loss for the quarter and lower income for the year was $850 million in contingency costs, before taxes, related to the spinoff of paint materials company Tronox Incorporated. In December, a U.S. Bankruptcy Court judge in Manhattan ruled that Anadarko's Kerr-McGee Corporation "intended to harm Tronox creditors by saddling the spinoff with unsustainable environmental liabilities," according to Reuters.
Capital expenditures were reported to be $2.61 billion for the quarter, compared with $1.93 billion in the fourth quarter of 2012, and $8.52 billion for the year, compared with $7.31 billion in 2012. Anadarko achieved a success rate of about 67% in the deepwater exploration/appraisal program; it is now the only company with all three discoveries in the Shenandoah Basin, which may prove to be one of the largest accumulations of oil found in the deepwater Gulf of Mexico.
Industrial Info is tracking more than $23 billion in active projects involving Anadarko, including the $350 million addition of a central natural gas and oil processing facility at the Salt Creek EOR Field near Midwest, Wyoming. The project involves constructing an oil processing facility (80,000 to 100,000 barrels per day) and installing a new recycle compressor station (160 billion cubic feet per day) and four 4,000-HP natural gas engine-driven aerial compressors to increase inlet pressure.
In Colorado, Industrial Info is tracking the $70 million construction of the Lancaster Natural Gas Processing Plant near Fort Lupton. The plant is designed to process up to 300 million standard cubic feet per day of natural gas from the DJ Basin; construction will involve the installation of two 13,000-HP GE electric motor-driven compressors.
"Sales volumes for the Eagle Ford and East Texas areas were up 46% and 78%, respectively, year over year," said Al Walker, the chairman, president and chief executive officer of Anadarko, in a conference call. "The early results from this very liquids-rich play, with good reservoir energy, continue to look strong and have caused us to increase our operator rig count to seven, in order to accelerate the delineation of over 600,000 gross acres. In 2013, we again improved our efficiencies by drilling 180 more wells than we originally anticipated in the U.S. offshore."
Among the projects that are expected to be commissioned in 2014 are the Lancaster plant, which is set for the first quarter, and the 80,000-barrel-per-day Lucius spar in the deepwater Gulf, which is set for the second half of the year.
"We expect the first quarter to add to our cash position through the closing of the $2.64 billion sell-down in Mozambique, and the recently closed $580 million divestiture of our Pinedale/Jonah position [in Wyoming," Walker said.
For more information, visit Industrial Info's North American Oil and Gas Production Database.
View Plant Profile - 3079212 1060129
View Project Report - 300101743 45000835
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Total revenues stood at $3.34 billion for the quarter, a 2.11% decrease from the same period in 2013, and $14.58 billion for the year, an 8.72% increase from 2012. Sales volumes of natural gas, crude oil and natural gas liquids in 2013 averaged 781,000 barrels of oil equivalent (BOE) per day, a 6.69% increase from 2012, and hit a record full-year total of 285 million BOE. The company also added 551 million BOE of proved reserves during the year, with the total estimated to be 2.79 billion BOE. (Anadarko's proved reserves stand at 55% natural gas and 45% liquids.)
Record production in plays such as the Wattenberg Field, Eagle Ford Shale, East Texas/North Louisiana Horizontal and Marcellus Shale drove a 25% increase in U.S. onshore oil volumes from 2012. The Southern and Appalachia regions alone saw a 59,000-BOE increase.
Among the factors contributing to the net loss for the quarter and lower income for the year was $850 million in contingency costs, before taxes, related to the spinoff of paint materials company Tronox Incorporated. In December, a U.S. Bankruptcy Court judge in Manhattan ruled that Anadarko's Kerr-McGee Corporation "intended to harm Tronox creditors by saddling the spinoff with unsustainable environmental liabilities," according to Reuters.
Capital expenditures were reported to be $2.61 billion for the quarter, compared with $1.93 billion in the fourth quarter of 2012, and $8.52 billion for the year, compared with $7.31 billion in 2012. Anadarko achieved a success rate of about 67% in the deepwater exploration/appraisal program; it is now the only company with all three discoveries in the Shenandoah Basin, which may prove to be one of the largest accumulations of oil found in the deepwater Gulf of Mexico.
Industrial Info is tracking more than $23 billion in active projects involving Anadarko, including the $350 million addition of a central natural gas and oil processing facility at the Salt Creek EOR Field near Midwest, Wyoming. The project involves constructing an oil processing facility (80,000 to 100,000 barrels per day) and installing a new recycle compressor station (160 billion cubic feet per day) and four 4,000-HP natural gas engine-driven aerial compressors to increase inlet pressure.
In Colorado, Industrial Info is tracking the $70 million construction of the Lancaster Natural Gas Processing Plant near Fort Lupton. The plant is designed to process up to 300 million standard cubic feet per day of natural gas from the DJ Basin; construction will involve the installation of two 13,000-HP GE electric motor-driven compressors.
"Sales volumes for the Eagle Ford and East Texas areas were up 46% and 78%, respectively, year over year," said Al Walker, the chairman, president and chief executive officer of Anadarko, in a conference call. "The early results from this very liquids-rich play, with good reservoir energy, continue to look strong and have caused us to increase our operator rig count to seven, in order to accelerate the delineation of over 600,000 gross acres. In 2013, we again improved our efficiencies by drilling 180 more wells than we originally anticipated in the U.S. offshore."
Among the projects that are expected to be commissioned in 2014 are the Lancaster plant, which is set for the first quarter, and the 80,000-barrel-per-day Lucius spar in the deepwater Gulf, which is set for the second half of the year.
"We expect the first quarter to add to our cash position through the closing of the $2.64 billion sell-down in Mozambique, and the recently closed $580 million divestiture of our Pinedale/Jonah position [in Wyoming," Walker said.
For more information, visit Industrial Info's North American Oil and Gas Production Database.
View Plant Profile - 3079212 1060129
View Project Report - 300101743 45000835
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
