Research Desk Line-up: WildHorse Resource Development Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 20, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Anadarko Petroleum Corp. (NYSE: APC) ("Anadarko"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=APC. The Company announced on November 16, 2017, its capital expectations and guidance as well as sales guidance for FY18. In FY18, the Company plans to increase shareholder value by delivering attractive margins and returns at the same time increase its core assets using available cash flow. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Independent Oil & Gas industry. Pro-TD has currently selected WildHorse Resource Development Corporation (NYSE: WRD) for due-diligence and potential coverage as the Company announced on November 08, 2017, it's operating and financial results for Q3 2017 which ended on September 30, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on WildHorse Resource Development when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on APC; also brushing on WRD. Go directly to your stock of interest and access today's free coverage at:

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Sharing his views on the Company's CapEx plans for FY18, Al Walker, Chairman, President, and CEO of Anadarko, said:

"Our 2018 investment plan will again be driven by capital efficiency and financial discipline. These key tenets have served us well for the last decade, as growth within cash flow is fundamental to delivering capital-efficient returns. Our repositioned asset footprint is built to succeed in a market where oil prices exhibit volatility in a $45-$60 environment, with gas averaging $3 per Mcf (thousand cubic feet). We expect next year's capital expenditures to be inside of discretionary cash flow at $50 and $3, while generating free cash flow of more than $700 million at the current strip."

Key highlights of its Capital Plans for FY18

  • Capital Spending in range of $4.2 to $4.6 billion in FY18;
  • Nearly 80% of its capital spending allocated toward assets in Delaware and DJ basins, including Anadarko midstream, and deepwater Gulf of Mexic;.
  • Cashflow is calculated at current strip prices. The Company breaks even when price of oils is at $50 and natural gas at $3Mcf in the current commodity-price environment;
  • Aims for 20% cash returns on the capital invested;
  • Aims for 14% oil growth on a year-over-year basis which is equivalent to 19% oil growth per debt-adjusted-share.

The Company plans to increase shareholder value with share buybacks of $1.5 billion in FY18 out of its $2.5 billion share-repurchase program.

The Company is also modifying the metrics of its 2018 compensation program. The new metrics for evaluating performance would include, cash return on invested capital, volume growth per debt-adjusted share, and reserve additions per debt-adjusted share. The decision to move to debt-adjusted performance metrics is to align its compensation programs to the capital-allocation, a formula that the Company has used in the last ten years.

Capital Outlay for FY18

The Company has allocated approximately $900 million toward upstream activities in the Delaware Basin of West Texas plus $500 million for its midstream investments. These investments are for building the integrated infrastructure in the region. These investments are expected to deliver incremental oil sales volume in H2 2018 with total oil sales volume expected to increase more than 50% compared to that in FY17. The Company plans to have an average of seven operated rigs and six completion crews in FY18.

Anadarko plans to invest approximately $950 million on upstream activities in DJ Basin of northeast Colorado in FY18. The Company has more than 2 billion BOE of net resources within its development area and plans to have five operated rigs and three completions crews in this region. The capital investment is expected to increase oil sales volume from DJ Basin by 30% on a year-on-year basis.

For its deepwater Gulf of Mexico operations, the Company has allocated approximately $1.1 billion investment. The major portion of this would be focused on high-return oil development opportunities near operated infrastructure at Lucius, Horn Mountain, Marlin, Holstein, and Marco Polo. In FY18 the Company expects to operate two floating drill ships and spud approximately five development wells in this region.

Internationally, Anadarko has set aside over $150 million for its cash-generating operations in Algeria and Ghana in 2018. The capital spending is towards extended drilling in the TEN development area which is planned to start in Q1 2018. The Company will also be spending on drilling operations in the Jubilee field since it has recently received approval for its full-field development plan from the Ghanaian Government.

The Company has allocated approximately $200 million towards spending on exploration in FY18, primarily in the Gulf of Mexico, where it plans to drill identified prospects near existing operated infrastructure. It also plans to spend nearly $150 million for the advancement of its Mozambique LNG project. Most of the capital spending will be aimed at covering the Company's share in this project including the preparing the site of the future LNG park.

Sales Guidance for 2018

The Company expects total sales volume for FY17 to be 224-228 MMBOE (Million Barrels of Oil Equivalents). Against this it expects the volume to move up to 245-255 MMBOE in FY18. Similarly, it expects the total oil sales for FY17 to be 343-348 MBOPD (Million Barrel of Oil Per Day) which it expects to move up to 385-405 MBOPD in FY18.

About Anadarko Petroleum Corp.

Woodlands, Texas based Anadarko is one of the world's largest independent oil and natural gas exploration and production Companies. It has a large and diverse portfolio of oil and natural gas resources and had proven reserves of 1.72 BBOE at the end of FY16. The Company'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.

Last Close Stock Review

On Friday, November 17, 2017, the stock closed the trading session at $48.15, rising 1.37% from its previous closing price of $47.50. A total volume of 6.10 million shares have exchanged hands, which was higher than the 3-month average volume of 5.42 million shares. Anadarko Petroleum's stock price surged 14.51% in the last three months. The stock has a dividend yield of 0.42%. At Friday's closing price, the stock's net capitalization stands at $26.63 billion.

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