Anadarko Petroleum Corporation

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Anadarko Petroleum Corporation is among the largest US independent exploration and production companies and one of the Eagleford’s largest producers, with roughly 388,000 gross acres in Dimmit, LaSalle, Maverick and Webb Counties.

In March of 2011, Anadarko made headlines in announcing a deal with the Korea National Oil Corporation (KNOC). KNOC earned a 33% interest in Anadarko's Maverick Basin assets for $1.55 billion (>$16,000 per acre). KNOC received 80,000 net acres in the liquids-rich Eagle Ford Shale oil play and 16,000 additional acres prospective for the deeper Pearsall Shale gas formation. The Eagle Ford JV was built with plans to drill horizontal wells that target oil in the Eagle Ford. KNOC also participates with Anadarko in its oil & gas gathering systems and facilities.

Anadarko's operations are weighted towards resource plays in Texas and the southern US, Rocky Mountains region in Colorado, Wyoming, and Utah, as well as the Appalachian region in Pennsylvania. Anadarko's stock is listed on the NASDAQ as APC. The company along with Western Gas LP markets natural gas, crude oil, condensate, and oil and natural gas liquids (NGLs).  The companies also operate natural gas gathering, treating, and processing systems. Anadarko Petroleum Corporation also has operations in Alaska, Algeria, Brazil, China, East Africa, West Africa, Ghana, Indonesia, and New Zealand. The company was founded in 1959 and is headquartered in The Woodlands, Texas.  Anadarko's Carrizo Springs office serves as the field office for the Eagle Ford Shale and other Maverick Basin properties.

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Anadarko Eagle Ford Shale Quarterly Commentary

May 2016

Anadarko reported first quarter results that include a net loss of $1.034 billion. The company's capital investment in the Eagle Ford for the first quarter was $37 million with production at 76 MBOE/d compared to 88MBOE/d for the same period last year. The company currently has zero rigs running in the region.

November 2015

Anadarko  Petroleum Corporation released its third quarter financials, revealing it won’t be chasing growth any time soon. Company leaders reported a net loss of $2.235 billion. CEO Al Walker emphasized that the company is has stepped out of a growth mode and is instead focusing on reducing costs and improving operating efficiencies to deal with the downturn.

July 30, 2015

Anadarko's second quarter financials showed a 73% decrease in profits over last year and a reluctance to pinpoint when they will return to growth mode. CEO Al Walker expressed the caution felt by many in the industry as crude prices continue to fluctuate. Margins remain low for the company as costs outstrip service providers’ ability to cut prices.

The uncertainty is particularly acute around operations in the shale plays, including the Eagle Ford. Walker was hesitant to commit to a timeline for moving back into a growth mode in the shale plays, saying that they do multi-year planning and can’t make predictions based on quarterly results.

March 16, 2015

Anadarko released its initial capital expectations for 2015 that included a 30% spending cut from last year and plans to reduce its Eagle Ford rig count. The company 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.

May 5, 2014

The Eagleford Shale contributed to Anadarko's first-quarter 2014 record U.S. onshore sales volumes with a 46-percent year-over-year increase in liquids production, more than half of which was oil. Total liquids sales volumes averaged more than 40,600 b/d. Anadarko’s net Ealge Ford sales volumes for the quarter averaged more than 59,000 boe/d, an increase of 41% relative to the 1st quarter of 2013.

During the first quarter, the company drilled 102 wells in an average 8.1 days per well utilizing 10 rigs and brought 110 new wells on line to sales. The company's capital investment was $244 million.

February 6, 2013

Anadarko’s Eagleford Shale activity delivered net sales volumes of 39,100 BOE/d in the quarter, representing a 71% increase over the 4 the quarter of 2011 and a 7% increase over the 3rd quarter of 2012. The company set a daily net production record of more than 54,400 BOE/d during the quarter, corresponding to a daily gross processed production record of approximately 125,600 BOE/d.

During the quarter, the company averaged nine operated rigs, and improved average spud-to-rig-release to 9.2 days, with a record of 5.4 days. Due to these increased drilling efficiencies, the company was able to transfer one rig out of the area and release a spudder rig, and still is expected to drill more wells using eight rigs in 2013 than it did with 10 rigs in 2012.

Anadarko continued its midstream development activity by extending its oil gathering pipeline from Gardendale to Cotulla and increasing its natural gas gathering system capacity to 350 MMcf/d, with additional expansions planned in 2013.

Construction of the Brasada natural gas plant remains on schedule for a 2nd quarter 2013 startup. The 200 MMcf/d plant is capable of recovering approximately 30,000 barrels per day of NGLs.

October 29, 2012

Anadarko’s Eagleford Shale delivered sales volumes of 36,400 BOE/d in the quarter, more than doubling sales volumes from the 3rd quarter of 2011 and increasing sales volumes by 23% over the 2nd quarter of 2012. The company set a weekly net production record of more than 39,000 boe/d during the quarter and daily gross processed production record estimated at approximately 112,000 boe/d.

During the quarter, the company operated nine conventional rigs, one spudder rig and three dedicated 24-hour completion crews. The company spud 76 wells, completed 56 wells and achieved first production from 61 wells.

Anadarko drilled 28 wells during the quarter in less than 10 days from spud-to-rig-release as it continues to realize drilling efficiencies throughout the field.

During the quarter, Anadarko enhanced its ability to deliver uninterrupted sales volumes by installing booster turbines at the company’s primary delivery points.

July 30, 2012

In the Eagleford Shale, the company set a spud-to-rig-release cycle time record of 6.8 days during the quarter. The average cycle time for the quarter improved by 15% to 10.5 days relative to 12.4 days during the 1st quarter of 2012.

Anadarko’s average sales volumes for the quarter were approximately 29,700 BOE/d, which represents an increase of 132% over the 2nd quarter of 2011.

During the quarter, the company set a record for weekly net production of more than 32,300 BOE/d, while gross processed production approached 100,000 BOE/d.

Also during the quarter, Anadarko spud 70 wells, completed 50 wells and achieved first production from 44 wells. The company operated nine conventional rigs and one spudder rig throughout the quarter. The average cycle time improved by 15% to 10.5 days as compared to 12.4 days during the 1st quarter of 2012.

May 1, 2012

Anadarko doubled the number of identified locations in the Eagle Ford in the quarter to 4,000 and increased net resources to 600 million boe. Average sales volumes were 27,300 boe/d in the quarter and the company set a weekly record of 30,200 boe/d. The company started drilling on 69 wells, completed 74 wells and achieved first production on 59 wells. The company operates 10 rigs and 1 spudder rig. The Brasada Gas Processing Plant also came online during the quarter and added 200 mmcf/d of capacity. The plant will have an ultimate capacity of 455 mmcf/d when it is completed in mid-2013.

February 7, 2012

By continuing to focus capital investments on our liquids-rich opportunities, we achieved 10-percent year-over-year growth in liquids sales volumes, highlighted by production records in the Eagleford Shale, Wattenberg field, Greater Natural Buttes area, Bone Spring and certain other U.S. onshore resource plays. Anadarko accelerated production growth in the liquids-rich Eagleford Shale during 2011, exiting the year with gross volumes of approximately 77,000 BOE per day in the play, with a liquids yield of more than 65 percent. The growth in this highly economic field was aided by the company's entry into a $1.6 billion joint venture and major expansions in midstream infrastructure, and strategic service agreements.

November 1, 2011

"Anadarko exited the quarter with gross production of 66,000 BOE/d, which represents growth of 47% over the 2nd quarter exit rate of 45,000 BOE/d. For the quarter, oil sales volumes increased almost 150% compared to the sam period in 2010. During the quarter, the company spud 56 wells using 10 rigs and one spudder rig, and achieved first production from 37 wells. Anadarko initiated delivery to the Copano pipeline during the quarter and now has three main gathering and processing systems available for natural gas delivery."

Anadarko Q3 Operations Update

July 25, 2011

“During the quarter, Anadarko closed its approximate $1.6 billion Eagleford joint-venture agreement with a subsidiary of Korea National Oil Corporation (KNOC). Under the terms of this taxefficient agreement, KNOC earns approximately one-third of Anadarko’s interest in the company’s Maverick Basin assets in exchange for funding approximately 100% of capital costs in the play during the remainder of 2011 and up to 90% of costs thereafter until the carry is exhausted, which is expected to occur prior to the end of 2013. Anadarko exited the quarter with gross production of 45,000 BOE/d, which compares to the exit rate of 36,000 BOE/d at the end of the first quarter of 2011– a growth of about 25%....”

May 2, 2011

“Anadarko recently closed its $1.6 billion Eagleford joint-venture agreement with a subsidiary of KNOC. Under the terms of the agreement, KNOC will fund approximately 100 percent of capital costs in the play for the remainder of this year and up to 90 percent of costs thereafter until the carry is exhausted, which is expected to occur prior to the end of 2013. KNOC also exercised its option to acquire an approximate 25% interest in associated midstream assets for reimbursement of an additional $38 million. Already the largest producer in the Eagleford, the company increased average weekly net production from 14,400 BOE/d at year-end 2010 to approximately 20,000 BOE/d at the end of the 1st quarter of 2011...…”

Source: Anadarko Petroleum Corporation