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38 Pages

Anadarko corporate - reported results analysis


Anadarko corporate - reported results analysis

Report summary

Anadarko exits 2016 on a much stronger financial footing than at the start of the year. A strong cash holding and reduced leverage were built on the back of a successful divestment programme, a position that will be further strengthened with US$3.5 billion of asset sales set to close shortly. The company will continue to target cash flow neutrality in the first half of 2017, but is well-placed to fund growth in an improving oil price environment. Free cash flow generated will primarily be used to increase drilling activity, followed by bolt-on acquisitions in core US onshore and deepwater areas. A doubling of its onshore rig count to 14 by end-Q1 is indicative of the strengthening position and confidence in a stable oil price outlook.

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Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Reported Results Analysis report provides rapid response analysis on company quarterly results and strategy presentations. Use it to gain the upper hand with Wood Mackenzie's opinion on the latest corporate developments.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Q4 2016
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q3 2016
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q2 2016
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q1 2016
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • 2016 capital programme and guidance
    • Overview
    • 2016 budget cut by half, sharp focus on allocation
    • Asset sales to strengthen balance sheet, no plans to issue new equity
    • Exploration – keeping an eye on the longer term
  • Q4 2015
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q3 2015
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q2 2015
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q1 2015
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • 2015 capital programme and guidance
    • Overview
    • Capital budget cut by one-third
    • Production growth despite cuts; preparing for the next stage of growth
    • Looking long-term – the exploration programme continues
  • Q4 2014
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q3 2014
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q2 2014
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration
    • M&A
  • Q1 2014
    • Overview
      • The headline figure for Anadarko in Q1 was a US$2.7 billion loss related to the Tronox settlement. But this was expected by the market and was more than offset by a strong operational performance; the company reported record sales volumes of 819 kboe/d and is well-positioned relative to its 2014 guidance. The market reaction was positive, with 3% added to Anadarko's market value on the day.
      • Production growth was primarily driven by the company's US Lower 48 resource plays, but Anadarko is also making good progress with development work at Lucius and Heidelberg in deepwater GOM, which are on-track to deliver volume growth in 2014 and 2015 respectively. The company remains a highly active explorer, with multiple wells drilling ahead in frontier areas across its portfolio, providing the potential for further investor catalysts during the year.
      • Despite the Tronox settlement, we believe that Anadarko continues to trade at a discount to our base-case NPV,10. With the key overhangs being resolved, this discount has not gone unnoticed by activist investors, which are increasing their holdings, encouraged by a strong operational and financial outlook.
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration/appraisal
    • M&A
  • 2014 capital programme and guidance
    • Overview
    • Targeted production growth easily achievable
    • Capital investment to rise by 8%
    • Continuation of a proven exploration strategy
    • Active portfolio management
  • Q4 2013
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration/appraisal
  • Q3 2013
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration / appraisal
  • Q2 2013
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration/appraisal
  • Q1 2013
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
    • Exploration/appraisal
    • Completed M&A
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