Data & analytics solutions

Company Report 01 August 2018

This report is currently unavailable

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

Report summary

Anadarko's Q2 results were under whelming, with net profit of US$29 million coming in below analyst expectations. Production remained flat with last quarter as facility downtime in Deepwater GoM offset a strong performance from the DJ and Delaware Basins Onshore US. Capex guidance was up net US$250 million, with spend Onshore US up a notable US$550 million, and spend on its other assets down US$300 million. Aggressive spend on share buybacks has increased Anadarko's combined dividend and buyback yield to over 9%, the highest amongst its peers. But the move has put pressure on the balance sheet with net debt creeping up to US$14 billion and gearing reaching 55% by the end of the quarter.

Other Anadarko research
Q2 2018
- Key takeaways
- Overview
Q1 2018
Q4 2017
Q3 2017
- Key takeaways
Q2 2017
- Key takeaways
Q1 2017
- Overview
- Strategy / investment
- Operational performance
- Financial performance
- Exploration
2017 capital programme and guidance
- Overview
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