Anadarko released its initial capital expectations for 2015 that includes a 30% spending cut from last year and plans to reduce its Eagle Ford rig count.
During 2014, Anadarko increased total sales volumes by 16%, generated $150 million in free cash flow, grew its production base by 11%, and posted a reserve replacement ratio of 161%. The company also reported average sales volumes increased by more than 90,000 BOEs per day over 2013.
As Anadarko moves into 2015, they are making strategic and crucial decisions to remain strong. “In the current market,” said Walker, “we believe it is prudent to reduce capital investments and position the company for the future, rather than to pursue year-over-year growth.”
- Anticipates approximately 5% oil sales-volume growth
- Improved 2015 liquids product mix of approximately 50%
- Net resources of more than 1 billion BOE in the Wolfcamp Shale
- More than $700 million of asset monetizations to date in 2015
- Reduce our short-cycle U.S. onshore rig activity by 40 percent
- Defer approximately 125 onshore well completions.
Anadarko considers the Eagle Ford to be one of the strongest parts of its portfolio and reported making more than 20 percent rates of return in this activity in 2014. The company expects production to continue to rise in the Eagle Ford even exceeding the 250,000 BOE per day in 2014. Due to low oil prices, they will reduce running rigs by half. The company plans to drill another 200 wells but will defer the completion on many until prices stabilize.
Read more at anadarko.com