Anadarko Reduces 2015 Spending by 30%

Anadarko Eagle Ford Shale Map
Anadarko Eagle Ford Shale Map

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.

Read more about Anadarko in the Eagle Ford

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.

Our operational performance in 2014 was outstanding and Anadarko’s employees delivered a tremendous year across the board. Our U.S. onshore operations were nothing short of incredible, led by the Wattenberg field and the Eagle Ford shale resulting in full year volumes growth of 16%.
— CEO, R.A. Walker

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.


Rosetta Resources Sets Two Year Plan


Rosetta Resources announced its fourth quarter operational update and released a two year strategic outlook that includes major spending cuts.

In a press release on Tuesday, Rosetta Resources reported a Q4 net income of $185.5 million, which was up from $29.5 million for the same period last year. For the year, the company reported income of $313.6 million, or $5.09 per diluted share, versus net income of $199.4 million in 2013. Production for the quarter increased 41 percent from 2013 and averaged 73 MBoe/d.

Eagle Ford

Rosetta credits annual production records to the ongoing development of their Eagle Ford assets. The company’s capital budget for 2014 included included $666 million for drilling and completion in the Eagle Ford shale, where 94 wells were drilled and 95 wells were completed. Daily production from the Eagle Ford increased 36 percent over last year averaging 65 MBoe/d in the fourth quarter.

Two Year Forecast

As Rosetta Resources looks to the future, their spending plan includes holding core acreage positions and conserving as the industry waits for a commodity price recovery. Capital spending will be up to $350 million per year, with a major goal to be to operate within cash flow for 2015 and 2016. The company's production goals for this time period will be for about 60 thousand barrels of oil equivalent per day.

Rosetta has taken important steps the past several months to position the Company on solid footing so that our shareholders will benefit the most from a commodity price recovery.” Craddock added “We’ve chosen to defer production growth and focused instead on living within our means, maintaining our core acreage positions, and defending a target production level of about 60,000 Boe per day.
— Jim Craddock, Rosetta's Chairman, CEO and President