HOUSTON, Dec. 17, 2015 /PRNewswire/ — Anadarko Petroleum Corporation (NYSE: APC) today announced extensions to the maturity dates of its credit facilities and also provided an interim update on its fourth-quarter performance.
Anadarko extended the maturity of its $3 billion unsecured revolving credit facility to January 2021 and received commitments to renew its $2 billion 364-day credit facility upon its expiration in January 2016, to a new maturity in 2017, further supporting the company’s strong liquidity position. These extensions were achieved with no changes to covenants or pricing and with 100-percent participation from the company’s bank group.
Operationally, performance continues to exceed expectations across the portfolio. Production increases relative to guidance are being driven by the company’s core oil-producing areas in the Wattenberg field and the Delaware Basin. As a result, the company is increasing the midpoint of its fourth-quarter oil sales-volume guidance by more than 15,000 barrels of oil per day (BOPD) to a range of 314,000 to 319,000 BOPD. This outperformance is the primary contributor to a 2-million-BOE (barrels of oil equivalent) increase in the company’s total fourth-quarter sales-volume guidance, resulting in a new range of 70 to 72 million BOE.
Along with the strong production performance, the company’s continued efficiency gains are driving lower capital expenditures, with fourth-quarter capital investment expected to be at or below the mid-point of current guidance. Additionally, the company is continuing to make meaningful improvements to its cost structure, with direct oil and natural gas operating expense per BOE expected to be below the low end of current guidance.
Anadarko also announced it continues to make significant progress at its Heidelberg development in the Gulf of Mexico, which is well ahead of schedule and now expected to achieve first oil in the first quarter of 2016 from the three initial wells, pending regulatory approvals.
“In 2015, we set out to preserve and build value by focusing a greater percentage of our capital investments on longer-dated projects, while driving improved efficiencies into every aspect of our business, carefully managing our cost structure and accelerating value through asset monetizations,” said Anadarko Chairman, President and CEO Al Walker. “As we move closer to the end of the year and turn our focus toward 2016, I am increasingly encouraged by our results and proud of the work our employees and service providers have done to make Anadarko a better company by maximizing performance in a difficult macro environment. We are committed to a continued disciplined and value-focused approach in 2016 with capital spending expected to be significantly lower and aligned with cash in-flows from operations and targeted asset monetizations.”