Anadarko cuts 2017 spending by $300 million

Anadarko Petroleum Corp., The Woodlands, Tex., plans to reduce its full-year 2017 capital investment by $300 million to $4.2-4.4 billion.

Anadarko Petroleum Corp., The Woodlands, Tex., plans to reduce its full-year 2017 capital investment by $300 million to $4.2-4.4 billion.

The firm also is lowering its full-year sales-volume guidance by 4 million boe to 231-235 million boe after recent divestitures and the shutting of more than 3,000 wells in the DJ basin in Colorado after a home explosion in April (OGJ Online, Apr. 27, 2017).

Anadarko during the quarter closed on the divestiture of its Eaglebine assets in central Texas for $534 million and the sale of coalbed methane assets in Utah for $70 million. The firm thus far this year has received nearly $3.5 billion in divestiture proceeds, increasing the firm’s cash position to $6 billion at quarter end (OGJ Online, Jan. 13, 2017; Dec. 21, 2016).

“The current market conditions require lower capital intensity given the volatility of margins realized in this operating environment,” explained Al Walker, Anadarko chairman, president, and chief executive officer.

Anadarko reported a second-quarter net loss attributable to common stockholders of $415 million compared with a $692-million loss in second-quarter 2016.

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