Anadarko Petroleum Cuts 2015 Capex by 33%
Anadarko Petroleum shares are edging lower pre-bell after the oil company said it is cutting capital expenditures by 33% in 2015 and is not chasing year-on-year growth because of the weak oil prices.
The company anticipates approximately 5% year-over-year oil sales-volume growth in 2015, on a divestiture-adjusted basis. It expects total sales volume of 79 to 82 MMBOE in Q1, and 295 to 301 MMBOE in 2015, little changed from 2014.
The company said given the current commodity price environment it has reduced its initial 2015 capital expectations by about 33%, with short-cycle U.S. onshore rig activity cut by 40%. It plans to defer 125 onshore well completions.
Chairman, President and CEO Al Walker said: “Few companies have accomplished operationally what Anadarko has achieved over the last five years; although, in the current market, we believe it is prudent to reduce capital investments and position the company for the future, rather than to pursue year-over-year growth.”
It expects capital investment for Q1, excluding Western Gas Partners, of $1.7 billion to $1.9 billion, while for 2015 the range is likely to be $5.4 billion to $5.8 billion. The shares recently traded at $81.55 with a 52-week range of $71.00 – $113.51.