Anadarko reports 2018 capital guidance

Nov. 20, 2017
Anadarko Petroleum Corp., The Woodlands, Tex., reported its 2018 capital expectations and guidance. In 2018, the company expects to make capital investments of $4.2-4.6 billion.

Anadarko Petroleum Corp., The Woodlands, Tex., reported its 2018 capital expectations and guidance. In 2018, the company expects to make capital investments of $4.2-4.6 billion.

Anadarko expects to spend about $2.1 billion in US onshore, upstream operations. Moreover, the company plans to invest $1.1 billion in deepwater Gulf of Mexico operations, $550 million in midstream, $350 million in exploration and LNG, and $150 million in international operations.

“Our 2018 investment plan will again be driven by capital efficiency and financial discipline,” said Anadarko Chairman, Pres., and Chief Executive Officer Al Walker. “These key tenets have served us well for the last decade, as growth within cash flow is fundamental to delivering capital-efficient returns. Our repositioned asset footprint is built to succeed in a market where oil prices exhibit volatility in a $45-60/bbl environment, with gas averaging $3/Mcf. We expect next year’s capital expenditures to be inside of discretionary cash flow at $50[/bbl] and $3[/Mcf], while generating free cash flow of more than $700 million at the current strip. Further, we plan to return substantial cash to shareholders by executing the remaining $1.5 billion of our $2.5 billion share-repurchase program during the coming year.”