Anadarko Petroleum Corporation released its first quarter financials this week saying they have no plans to increase spending, regardless of crude prices.
Related: Colorado School District Battles Anadarko
Woodlands-based Anadarko announced$1.03 billion net loss for the first quarter of 2016 as well as a year-over-year capital reduction of approximately 50 percent. In an earnings call this week, executives stressed their current focus on safety and productivity and reported saving $800 million by reducing the dividend and staffing
Eagle Ford Activity
Anadarko'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.
“What can you expect from us through the balance of the year? Do not expect us to increase our capital spending this year, even if oil exceeds $50,” said CEO R.A. Walker. “We’ll be very patient as we look beyond 2016 to a sustained higher-price environment to increase capital and return to a growth mode, if warranted.”
Anadarko is facing legal challenges in Colorado, where they are working on an agreement with the Boulder Valley School District over oil and gas drilling rights on an adjacent property new K-8th grade school. The district wants the company to relinquish the surface use rights they hold or agree to only access oil and gas through horizontal drilling.