Anadarko Announces 2019 Second-Quarter Results

HOUSTON, July 26, 2019 /PRNewswire/ -- Anadarko Petroleum Corporation APC today announced 2019 second‑quarter results, reporting a net loss attributable to common stockholders of $1.025 billion, or $2.09 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by $1.274 billion, or $2.60 per share (diluted), on an after-tax basis,(1) which includes the Chevron merger termination fee and other merger transaction costs of $1.042 billion. Net cash provided by operating activities totaled $776 million for the quarter.

SECOND-QUARTER 2019 OPERATIONAL HIGHLIGHTS

Anadarko's second-quarter 2019 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 68 million barrels of oil equivalent (BOE), or an average of 744,000 BOE per day, which included 434,000 barrels of oil per day (BOPD).

Anadarko's U.S. onshore assets averaged sales volume of 484,000 BOE per day during the second quarter of 2019, which included 207,000 BOPD. Anadarko's Gulf of Mexico averaged 158,000 BOE per day in the quarter, which included 130,000 BOPD. Internationally, the company averaged 102,000 BOE per day during the second quarter, which included 97,000 BOPD.

On June 18, 2019, Anadarko and the co-venturers in Mozambique's Offshore Area 1 announced a Final Investment Decision (FID), officially confirming the Mozambique LNG project is advancing to the construction phase. The Anadarko-led Area 1 Mozambique LNG project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 million tonnes per annum to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

FINANCIAL DATA

Eight pages of summary financial data follow, including current hedge positions and a reconciliation of "divestiture-adjusted" or "same-store" sales.

(1)

See the accompanying table for details of certain items affecting comparability.

Logo:  http://photos.prnewswire.com/prnh/20141103/156201LOGO

Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2018, the company had 1.47 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to successfully plan, finance, build, and operate the necessary infrastructure and LNG park in Mozambique. See "Risk Factors" in the company's 2018 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

Anadarko Contacts

INVESTORS:

Mike Pearl, mike.pearl@anadarko.com, 832.636.3271

Kyle Deakins, kyle.deakins@anadarko.com, 832.636.2354

Jon VandenBrand, jon.vandenbrand@anadarko.com, 832.636.1007

MEDIA:

John Christiansen, john.christiansen@anadarko.com, 832.636.8736

Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912



Anadarko Petroleum Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

Below are reconciliations of certain GAAP to non-GAAP financial measures, each as required under Regulation G of the Securities Exchange Act of 1934. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.

Management uses adjusted net income (loss) to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain noncash and/or other items that management does not consider to be indicative of the Company's performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company's operating and financial performance across periods, as well as facilitating comparisons to others in the Company's industry.





Quarter Ended June 30, 2019





Before



After



Per Share

millions except per-share amounts



Tax



Tax



(diluted)

Net income (loss) attributable to common stockholders (GAAP)







$

(1,025)





$

(2.09)



Adjustments for certain items affecting comparability













Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives (after noncontrolling interest)*



$

(227)





(175)





(0.36)



Gains (losses) on divestitures, net



6





5





0.01



Lower-of-cost-or-market inventory adjustments



(6)





(5)





(0.01)



Merger transaction costs



(1,042)





(1,042)





(2.12)



Exploration assets - impairments



(38)





(29)





(0.06)



Reorganization-related charges



(15)





(11)





(0.02)



Change in uncertain tax positions







(17)





(0.04)



Certain items affecting comparability



$

(1,322)





(1,274)





(2.60)



Adjusted net income (loss) (Non-GAAP)







$

249





$

0.51





*

Includes $(232) million related to interest-rate derivatives (after noncontrolling interest) and $5 million related to commodity derivatives.

 





Quarter Ended June 30, 2018





Before



After



Per Share

millions except per-share amounts



Tax



Tax



(diluted)

Net income (loss) attributable to common stockholders (GAAP)







$

29





$

0.05



Adjustments for certain items affecting comparability













Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*



$

(267)





(205)





(0.40)



Gains (losses) on divestitures, net



52





39





0.07



Impairments













Producing properties (after noncontrolling interest)



(45)





(35)





(0.07)



Exploration assets



(41)





(31)





(0.06)



Contingency accrual



(13)





(10)





(0.02)



Change in uncertain tax positions







(7)





(0.01)



Certain items affecting comparability



$

(314)





(249)





(0.49)



Adjusted net income (loss) (Non-GAAP)







$

278





$

0.54





*  

Includes $32 million related to interest-rate derivatives, $(298) million related to commodity derivatives, and $(1) million related to gathering, processing, and marketing sales.

Anadarko Petroleum Corporation

Reconciliation of GAAP to Non-GAAP Measures

Management believes that the presentation of Adjusted EBITDAX (Margin) provides information useful in assessing the Company's operating and financial performance across periods.



Three Months Ended

June 30,



Six Months Ended

June 30,

millions

2019



2018



2019



2018

Net income (loss) attributable to common stockholders (GAAP)

$

(1,025)





$

29





$

(1,040)





$

150



Interest expense

249





237





502





465



Income tax expense (benefit)

209





125





375





251



Depreciation, depletion, and amortization

1,161





1,003





2,242





1,993



Exploration expense*

90





94





139





262



(Gains) losses on divestitures, net

(6)





(52)





(1)





(28)



Impairments





128









147



Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives

255





267





571





240



Reorganization-related charges

15









33







Merger transaction costs

1,042









1,042







Consolidated Adjusted EBITDAX (Margin) (Non-GAAP)

$

1,990





$

1,831





$

3,863





$

3,480



Total barrels of oil equivalent (MMBOE)

68





58





132





116



Consolidated Adjusted EBITDAX (Margin) per BOE

$

29.26





$

31.57





$

29.27





$

30.00





Includes reorganization-related charges of $1 million for the six months ended June 30, 2019.

Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt in the capitalization ratio is useful to investors in determining the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt. In addition, management believes that presenting Anadarko's net debt excluding WES is useful because WES is a separate public company with its own capital structure.







June 30, 2019















Anadarko







Anadarko



WES*



excluding

millions





Consolidated



Consolidated



WES

Total debt (GAAP)





$

18,229





$

7,489





$

10,740



Less cash and cash equivalents





1,394





96





1,298



Net debt (Non-GAAP)





$

16,835





$

7,393





$

9,442

































Anadarko











Anadarko



excluding

millions









Consolidated



WES

Net debt









$

16,835





$

9,442



Total equity









9,331





7,773



Adjusted capitalization









$

26,166





$

17,215



























Net debt to adjusted capitalization ratio











64

%





55

%





*

Western Midstream Partners, LP (WES) is a publicly traded consolidated subsidiary of Anadarko.

 

Anadarko Petroleum Corporation

Cash Flow Information

(Unaudited)





Three Months Ended



Six Months Ended



June 30,



June 30,

millions

2019



2018



2019



2018

Cash Flows from Operating Activities















Net income (loss)

$

(945)





$

17





$

(849)





$

191



Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities















Depreciation, depletion, and amortization

1,161





1,003





2,242





1,993



Deferred income taxes

(55)





(15)





(54)





27



Dry hole expense and impairments of unproved properties

41





43





41





149



Impairments





128









147



(Gains) losses on divestitures, net

(6)





(52)





(1)





(28)



Total (gains) losses on derivatives, net

254





437





569





473



Operating portion of net cash received (paid) in settlement of derivative instruments

1





(171)





2





(234)



Other

70





65





112





139



Changes in assets and liabilities

255





(230)





(157)





(202)



Net Cash Provided by (Used in) Operating Activities

$

776





$

1,225





$

1,905





$

2,655



Net Cash Provided by (Used in) Investing Activities

$

(1,257)





$

(1,943)





$

(2,785)





$

(3,056)



Net Cash Provided by (Used in) Financing Activities

$

(149)





$

(319)





$

980





$

(1,826)



 

Anadarko Petroleum Corporation

(Unaudited)





Three Months Ended



Six Months Ended

Summary Financial Information

June 30,



June 30,

millions except per-share amounts

2019



2018



2019



2018

Consolidated Statements of Income















Revenues and Other















Oil sales

$

2,470





$

2,265





$

4,566





$

4,392



Natural-gas sales

205





203





525





450



Natural-gas liquids sales

216





318





456





610



Gathering, processing, and marketing sales

465





382





935





742



Gains (losses) on divestitures and other, net

86





123





178





142



Total

3,442





3,291





6,660





6,336



Costs and Expenses















Oil and gas operating

310





275





599





551



Oil and gas transportation

222





209





444





405



Exploration

90





94





139





262



Gathering, processing, and marketing

274





252





530





489



General and administrative

368





288





635





566



Merger transaction costs

1,042









1,042







Depreciation, depletion, and amortization

1,161





1,003





2,242





1,993



Production, property, and other taxes

182





201





381





391



Impairments





128









147



Other operating expense

8





22





29





162



Total

3,657





2,472





6,041





4,966



Operating Income (Loss)

(215)





819





619





1,370



Other (Income) Expense















Interest expense

249





237





502





465



(Gains) losses on derivatives, net

254





436





567





471



Other (income) expense, net

18





4





24





(8)



Total

521





677





1,093





928



Income (Loss) Before Income Taxes

(736)





142





(474)





442



Income tax expense (benefit)

209





125





375





251



Net Income (Loss)

(945)





17





(849)





191



Net income (loss) attributable to noncontrolling interests

80





(12)





191





41



Net Income (Loss) Attributable to Common Stockholders

$

(1,025)





$

29





$

(1,040)





$

150



Per Common Share















Net income (loss) attributable to common stockholders—basic

$

(2.09)





$

0.05





$

(2.13)





$

0.28



Net income (loss) attributable to common stockholders—diluted

$

(2.09)





$

0.05





$

(2.13)





$

0.28



Average Number of Common Shares Outstanding—Basic

491





504





491





511



Average Number of Common Shares Outstanding—Diluted

491





505





491





512



















Exploration Expense















Dry hole expense

$

3





$

2





$

3





$

55



Impairments of unproved properties

38





41





38





94



Geological and geophysical, exploration overhead, and other expense

49





51





98





113



Total

$

90





$

94





$

139





$

262



 

Anadarko Petroleum Corporation

(Unaudited)





June 30,



December 31,

millions

2019



2018

Condensed Balance Sheets







Cash and cash equivalents

$

1,394





$

1,295



Accounts receivable, net of allowance

1,779





2,026



Other current assets

298





474



Net properties and equipment

29,091





28,615



Other assets

2,953





2,336



Goodwill and other intangible assets

5,614





5,630



Total Assets

$

41,129





$

40,376



Short-term debt - Anadarko*

31





919



Short-term debt - WES





28



Other current liabilities

3,761





3,711



Long-term debt - Anadarko*

10,709





10,683



Long-term debt - WES

7,489





4,787



Deferred income taxes

2,555





2,437



Asset retirement obligations

2,879





2,847



Other long-term liabilities

4,374





4,021



Common stock

58





57



Paid-in capital

13,135





12,393



Retained earnings

(149)





1,245



Treasury stock

(4,892)





(4,864)



Accumulated other comprehensive income (loss)

(379)





(335)



Total stockholders' equity

7,773





8,496



Noncontrolling interests

1,558





2,447



Total Equity

9,331





10,943



Total Liabilities and Equity

$

41,129





$

40,376



Capitalization







Total debt

$

18,229





$

16,417



Total equity

9,331





10,943



Total

$

27,560





$

27,360



















Capitalization Ratios











Total debt



66

%





60

%

Total equity



34

%





40

%



*    Excludes WES

 

Anadarko Petroleum Corporation

(Unaudited)



Sales Volume and Prices





































Average Daily Sales Volume



Sales Volume



Average Sales Price



Oil



Natural Gas



NGLs



Oil



Natural Gas



NGLs



Oil



Natural Gas



NGLs



MBbls/d



MMcf/d



MBbls/d



MMBbls



Bcf



MMBbls



Per Bbl



Per Mcf



Per Bbl

Quarter Ended June 30, 2019



































United States

337





1,167





110





32





106





9





$

60.60





$

1.93





$

19.96



Algeria

60









5





5









1





67.60









35.83



Other International

37













3













71.01











Total

434





1,167





115





40





106





10





$

62.45





$

1.93





$

20.63







































Quarter Ended June 30, 2018



































United States

284





1,037





95





27





94





8





$

66.94





$

2.15





$

34.66



Algeria

52









5





5









1





74.73









39.34



Other International

28













2













71.76











Total

364





1,037





100





34





94





9





$

68.43





$

2.15





$

34.88







































Six Months Ended June 30, 2019



































United States

335





1,159





108





61





210





19





$

57.90





$

2.50





$

21.71



Algeria

60









5





11









1





64.57









35.39



Other International

28













5













69.01





0.65







Total

423





1,159





113





77





210





20





$

59.58





$

2.50





$

22.33







































Six Months Ended June 30, 2018



































United States

286





1,044





93





52





189





17





$

64.75





$

2.38





$

33.97



Algeria

54









5





10









1





70.93









40.06



Other International

28













5













69.70











Total

368





1,044





98





67





189





18





$

66.03





$

2.38





$

34.27













































































Average Daily Sales Volume

MBOE/d



Sales Volume

MMBOE

























































Quarter Ended June 30, 2019

744



68





















Quarter Ended June 30, 2018

637



58

























































Six Months Ended June 30, 2019

729



132





















Six Months Ended June 30, 2018

640



116

























































 

Sales Revenue and Commodity Derivatives

















Sales





Net Cash Received (Paid) from Settlement of Commodity

Derivatives

millions

Oil



Natural Gas



NGLs





Oil



Natural Gas



NGLs

Quarter Ended June 30, 2019

























United States

$

1,862





$

205





$

200







$





$





$



Algeria

372









16

















Other International

236

























Total

$

2,470





$

205





$

216







$





$





$





























Quarter Ended June 30, 2018

























United States

$

1,726





$

203





$

301







$

(176)





$

6





$



Algeria

359









17

















Other International

180

























Total

$

2,265





$

203





$

318







$

(176)





$

6





$





























Six Months Ended June 30, 2019





















United States

$

3,516





$

525





$

423







$

6





$





$



Algeria

705









33

















Other International

345

























Total

$

4,566





$

525





$

456







$

6





$





$





























Six Months Ended June 30, 2018





















United States

$

3,349





$

450





$

575







$

(243)





$

5





$



Algeria

690









35

















Other International

353

























Total

$

4,392





$

450





$

610







$

(243)





$

5





$



 

Anadarko Petroleum Corporation

Commodity Hedge Positions

As of July 26, 2019































Weighted Average Price per barrel







Volume

(MBbls/d)



Floor Sold



Floor Purchased



Ceiling Sold

Oil



















Three-Way Collars

















2019



















    WTI



57

$

45.00

$

55.00

$

70.22



    Brent



30

$

50.00

$

60.00

$

78.22







87













 













Interest-Rate Derivatives

As of July 26, 2019













Instrument

Notional Amt.

Reference Period

Mandatory

Termination Date

Rate Paid

Rate Received

Anadarko











Swap

$550 Million

September 2016 - 2046

September 2020

6.418%

3M LIBOR

Swap

$250 Million

September 2016 - 2046

September 2022

6.809%

3M LIBOR

Swap

$100 Million

September 2017 - 2047

September 2020

6.891%

3M LIBOR

Swap

$250 Million

September 2017 - 2047

September 2021

6.570%

3M LIBOR

Swap

$450 Million

September 2017 - 2047

September 2023

6.445%

3M LIBOR

WES











Swap

$375 Million

December 2019 - 2024

December 2019

2.662%

3M LIBOR

Swap

$375 Million

December 2019 - 2029

December 2019

2.802%

3M LIBOR

Swap

$375 Million

December 2019 - 2049

December 2019

2.885%

3M LIBOR

 

Anadarko Petroleum Corporation

Reconciliation of Same-Store Sales



Average Daily Sales Volume



Quarter Ended June 30, 2019



Quarter Ended June 30, 2018



Oil

MBbls/d



Natural Gas

MMcf/d



NGLs

MBbls/d



Total

MBOE/d



Oil

MBbls/d



Natural Gas

MMcf/d



NGLs

MBbls/d



Total

MBOE/d

U.S. Onshore

207





1,073





98





484





169





969





86





417



Gulf of Mexico

130





93





12





158





114





66





9





134



International

97









5





102





80









5





85



Same-Store Sales

434





1,166





115





744





363





1,035





100





636



Divestitures





1













1





2









1



Total

434





1,167





115





744





364





1,037





100





637













Six Months Ended June 30, 2019



Six Months Ended June 30, 2018



Oil

MBbls/d



Natural Gas

MMcf/d



NGLs

MBbls/d



Total

MBOE/d



Oil

MBbls/d



Natural Gas

MMcf/d



NGLs

MBbls/d



Total

MBOE/d

U.S. Onshore

201





1,061





96





474





163





968





84





408



Gulf of Mexico

134





96





12





162





120





72





9





141



International

88









5





93





82









5





87



Same-Store Sales

423





1,157





113





729





365





1,040





98





636



Divestitures





2













3





4









4



Total

423





1,159





113





729





368





1,044





98





640



































 

Cision View original content:http://www.prnewswire.com/news-releases/anadarko-announces-2019-second-quarter-results-300891822.html

SOURCE Anadarko Petroleum Corporation

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