Oil and natural gas exploration and production play,
Anadarko Petroleum Corporation
) provided an operational update on its core assets - Wattenberg
in Colorado, Eagleford Shale in Texas, Greater Natural Buttes in
Utah and Marcellus Shale in Pennsylvania. The output from each of
these prospects beat the gross production mark of 100,000 barrels
of oil equivalent per day (BOE/d) during November 2012.
The Wattenberg prospect recently witnessed record production
level in excess of 45,000 BOE/d. The drilling success at the
Niobrara and Codell formations led to securing of returns of more
than 100% during the third quarter 2012.
Anadarko is working on advanced technological methods to
increase lateral lengths, footage drilled, and completion stages
and well density as well as reducing drilling cycle times. These
efforts will help drive production growth while deploying capital
efficiently. The company estimates 10% sequential growth to come
from Wattenberg from the third quarter onwards.
The liquids-rich Eagleford Shale also kept its pace and
contributed markedly to volume expansion. The drilling cycle so
far in the fourth quarter 2012 on an average was less than 9.5
days per well which represented a 25% upside from the year-ago
figure and also registered its best figure of 5.4 days for a
12,000-foot well. The company went on to observe production surge
in its East Texas horizontal program and in the Permian Basin's
Avalon Shale and Bone Spring plays located in west Texas and
southeast New Mexico.
Production growth from the major properties signifies
Anadarko's ability to effectively execute large-scale projects
and tap the maximum reserve potential from its resource plays.
The strength in U.S. oil and gas production year to date lends
credence to the company's ability to meet its production target
for the year in the range of 265-267 million barrels of oil
equivalent (BOE). This will be achieved in spite of the company
scrapping ethane in specific fields.
Capital efficiency has also been Anadarko's key strengths. The
company expects a 15 cent per BOE improvement in operating costs
in the fourth quarter. This takes the new operating cost guidance
to $3.90 to $4.00 per BOE for the said quarter.
Anadarko currently retains its short-term Zacks #3 Rank (Hold
rating). The Zacks Consensus Estimates for the fourth quarter and
full year 2012 are presently pegged at 79 cents and $3.44 per
Another exploration and production operator with a Zacks #3
Noble Energy Inc.
). The company is firmly abiding by its on-shore production
ramp-up goals in the Denver/Julesburg basin in Colorado and
Marcellus plays with the possible installation of a second unit
to the Lilli facility in Colorado.
Based in the Woodlands, Texas, Anadarko is primarily engaged
in the exploration, development, production, gathering,
processing and marketing of natural gas, crude oil, condensate
and NGLs. With a market capitalization of $36.74 billion, the
company has 4,800 employees.
ANADARKO PETROL (APC): Free Stock Analysis
NOBLE ENERGY (NBL): Free Stock Analysis
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