Anadarko Petroleum gets bounce after 2017 divestment

Anadarko Petroleum gets bounce after 2017 divestment
UPI

May 2 (UPI) — With the help from shale assets in the Lower 48 and output from the Gulf of Mexico, Anadarko Petroleum said it matched its record in production.

Anadarko, which has headquarters in Houston, reported first quarter sales volumes of 58 million barrels of oil equivalent. From the Denver-Julesburg basin in Colorado the company reported an average of 260,000 barrels of oil equivalent per day, an 8 percent increase from the same period last year. In the deep waters of the Gulf of Mexico, production sales set a record for the company at 128,000 barrels per day.

“Exceptional performance from our asset-management teams in the Delaware and DJ basins and the deepwater Gulf of Mexico drove record quarterly oil production, matching the company’s highest oil output to date,” CEO, Chairman and President Al Walker said in a statement.

The company last year sold off nearly a quarter million acres in the Eagle Ford shale in Texas to rival Sanchez Energy, which is now one of the largest producers in that basin. That divestment left Anadarko with holdings primarily in Colorado and offshore. The company two years ago outlined plans to cut spending by almost 40 percent and, by the first quarter of 2016, had already sold off about $2 billion in assets.

With its consolidated focus, Anadarko raised its production guidance from a range of 652,000-679,000 barrels of oil equivalent per day to 658,000-685,000 barrels of oil equivalent per day. Net profit attributable to shareholders was $121 million, compared with a net loss of $318 million one year ago.

“In the first quarter, Anadarko also announced a 400-percent increase to its quarterly dividend, increasing from 5 cents per share to 25 cents per share,” it stated.

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