Anadarko Petroleum Corp. reported weak financials in the fourth
quarter of 2014. Its earnings and revenue widely missed Zacks
Consensus Estimates and also dropped year over year. The decline
can primarily be attributed to lower prices for crude oil and
condensate and NGL sales. Anadarko decided to lower its capital
investments significantly in 2015 from 2014 levels, primarily due
to the challenges caused by the soft global crude prices. The
company might also curtail its production expansion plan if the
weakness in crude prices persists. Thus, we are maintaining our
Woodlands, TX-based Anadarko Petroleum Corporation (APC) is one
of the largest independent oil and natural gas exploration and
production (E&P) companies of the world. The company is
primarily engaged in the exploration, development, production,
gathering, processing and marketing of natural gas, crude oil,
condensate and natural gas liquids (NGLs). Anadarko Petroleum aims
at providing a competitive and sustainable rate of return to its
shareholders through exploration, acquisition and development of
oil and natural gas resources. Its strategy is to optimize its
asset portfolio and deliver long-term value to its stakeholders by
combining a large inventory of expansion opportunities in its
domestic operations with various offshore diversification
Anadarko Petroleum's core asset base includes positions in
onshore resource plays at the Rocky Mountain region, southern
United States, the Appalachian Basin and Alaska. Besides, the
company is a major independent producer in the deepwater Gulf of
Mexico (GoM) and has operations spread worldwide in East and West
Africa, Algeria as well as emerging opportunities in South Africa
and New Zealand. It also has E&P facilities in Brazil,
Mozambique, Liberia, C te d'Ivoire, Sierra Leone and Ghana.
Anadarko Petroleum primarily operates through three business
segments: Oil & Gas Exploration & Production, Midstream and
The Oil & Gas Exploration & Production segment explores
and produces natural gas, crude oil, condensate and NGLs.
The Midstream segment is engaged in gathering, processing,
treating and transportation of oil and gas produced at its own and
The Marketing segment manages sales of Anadarko's gas, oil and
NGLs. Anadarko Petroleum also markets petroleum largely sourced
from partners and producers located near its plants. The company
actively markets oil from Algeria, China and Ghana.
In 2013, Anadarko Petroleum added 528 million barrels of oil
equivalent (MMBOE) of proved reserves. At the end of 2013, the
company had total proved reserves of 2,792 MMBOE. It had a proved
reserve product mix comprising 55% natural gas, 30% oil &
condensates and 15% NGLS at year-end 2013.
Anadarko Petroleum Corporation (APC): Read the Full
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