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Anadarko Unveils 2017 Guidance, Focus on US to Boost Results
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Anadarko Petroleum Corporation unveiled 2017 guidance and initial capital expenditures for the year, which is primarily focused toward domestic operations. Out of the company’s initially planned 2017 capital expenditure in the range of $4.5-$4.7 billion, nearly 80% will be allocated towards the U.S. onshore upstream and midstream activities, and expanded position in the Deepwater Gulf of Mexico.
The company aims to increase oil sales volume by nearly 25% in 2017 from 2016 levels and improve margins significantly backed by higher mix of oil in the total production mix. Anadarko Petroleum aims to increase Wolfcamp A (Delaware Basin) net resources by 50% to more than 3 billion barrels of oil equivalents (BOE) in 2017 and also raise DJ Basin development area net resources by 33% to more than 2 billion BOE in 2017.
These investments provide the foundation and also pave the way for Anadarko Petroleum to achieve its five-year oil growth expectations of more than 15% on a compounded annual basis at current prices. Delaware and DJ Basin assets of the company are going to be primary catalysts.
In addition to focusing on onshore domestic operations, Anadarko Petroleum is also working to boost Deepwater Gulf of Mexico as well as Algeria and Ghana by investing nearly $1.1 billion in 2017. In Gulf of Mexico, the company anticipates to benefit from a full year of production from the recently acquired Freeport-McMoRan properties, which doubled its sales volumes to more than 160,000 BOE per day at the end of 2016.
Anadarko Petroleum will continue deepwater activities in Mozambique, Columbia and Côte d'Ivoire. Further, its LNG project in Mozambique has a strong long-term prospect.
The oil prices are showing gradual sign of improvement from its historic low levels. The big operators in the oil and natural gas space are expecting a further rebound in prices and consequently strengthening their position in oil assets.
Devon Energy (DVN - Free Report) estimates total production from assets in the d full-year 2017 to be in the range 539,000–561,000 boe per day, while capital expenditure in the range of $2,285–$2,690 million. The company expects to improve 2017 U.S. oil production by 13–17% from 2016 levels.
Apache Corporation (APA - Free Report) announced a 2017 capital budget of $3.1 billion, representing a 60% increase over its 2016 spend. The company also aims to grow production by approximately 10% in the next year.
Price Movement
Shares of Anadarko Petroleum Corporation gained 53.52% in the last 12 months, outperforming the Zacks categorized Oil & Gas – Exploration and Production – U.S. industry’s increase of 30.2%.
Pioneer Natural Resources reported a positive earnings surprise of 63.33% in fourth-quarter 2016. Its 2017 and 2018 Zacks Consensus Estimate moved up by 44.8% and 37.4%, respectively in the last 30 days.
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Anadarko Unveils 2017 Guidance, Focus on US to Boost Results
Anadarko Petroleum Corporation unveiled 2017 guidance and initial capital expenditures for the year, which is primarily focused toward domestic operations. Out of the company’s initially planned 2017 capital expenditure in the range of $4.5-$4.7 billion, nearly 80% will be allocated towards the U.S. onshore upstream and midstream activities, and expanded position in the Deepwater Gulf of Mexico.
The company aims to increase oil sales volume by nearly 25% in 2017 from 2016 levels and improve margins significantly backed by higher mix of oil in the total production mix. Anadarko Petroleum aims to increase Wolfcamp A (Delaware Basin) net resources by 50% to more than 3 billion barrels of oil equivalents (BOE) in 2017 and also raise DJ Basin development area net resources by 33% to more than 2 billion BOE in 2017.
These investments provide the foundation and also pave the way for Anadarko Petroleum to achieve its five-year oil growth expectations of more than 15% on a compounded annual basis at current prices. Delaware and DJ Basin assets of the company are going to be primary catalysts.
In addition to focusing on onshore domestic operations, Anadarko Petroleum is also working to boost Deepwater Gulf of Mexico as well as Algeria and Ghana by investing nearly $1.1 billion in 2017. In Gulf of Mexico, the company anticipates to benefit from a full year of production from the recently acquired Freeport-McMoRan properties, which doubled its sales volumes to more than 160,000 BOE per day at the end of 2016.
Anadarko Petroleum will continue deepwater activities in Mozambique, Columbia and Côte d'Ivoire. Further, its LNG project in Mozambique has a strong long-term prospect.
Anadarko Petroleum Corporation Price
Anadarko Petroleum Corporation Price | Anadarko Petroleum Corporation Quote
Guidance from Peers
The oil prices are showing gradual sign of improvement from its historic low levels. The big operators in the oil and natural gas space are expecting a further rebound in prices and consequently strengthening their position in oil assets.
Devon Energy (DVN - Free Report) estimates total production from assets in the d full-year 2017 to be in the range 539,000–561,000 boe per day, while capital expenditure in the range of $2,285–$2,690 million. The company expects to improve 2017 U.S. oil production by 13–17% from 2016 levels.
Apache Corporation (APA - Free Report) announced a 2017 capital budget of $3.1 billion, representing a 60% increase over its 2016 spend. The company also aims to grow production by approximately 10% in the next year.
Price Movement
Shares of Anadarko Petroleum Corporation gained 53.52% in the last 12 months, outperforming the Zacks categorized Oil & Gas – Exploration and Production – U.S. industry’s increase of 30.2%.
Zacks Rank
Anadarko Petroleum Corporation currently carries a Zacks Rank #3 (Hold). A better-ranked stock sporting a Zacks Rank#1 (Strong Buy) is Pioneer Natural Resources Company (PXD - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural Resources reported a positive earnings surprise of 63.33% in fourth-quarter 2016. Its 2017 and 2018 Zacks Consensus Estimate moved up by 44.8% and 37.4%, respectively in the last 30 days.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>