Anadarko Petroleum Corp. announced a 2014 net loss of $1.75 billion, or $3.47/share diluted, including a net loss of $4.05 billion associated with the settlement of litigation involving its subsidiary, Tronox Inc., yet company executives remained upbeat about production growth.
The $4.05 billion aftertax charge helped resolve legal issues about pollution claims. Anadarko agreed to pay $5.15 billion last year to settle a lawsuit brought against Tronox over allegations that the company left creosote and uranium pollution at sites across the country.
Al Walker, Anadarko chairman, president, and chief executive officer, said the 2015 capital budget will be announced during a March conference call.
For 2014, Walker noted Anadarko achieved record production in several plays, especially the Wattenberg field, South Texas Eagle Ford shale, and Wolfcamp shale.
Anadarko’s full-year total sales volumes of natural gas, crude oil, and natural gas liquids totaled 306 million boe, or an average of 838,000 boe/d on a divestiture-adjusted basis, he said. As of Dec. 31, 2014, Anadarko’s proved reserves were comprised of 49% liquids and 51% gas.
In Wattenberg field in Colorado, Walker said, “We enhanced efficiencies in our drilling and completions and leveraged the competitive advantage of our expansive midstream infrastructure to significantly bolster our growth.”
Wattenberg field demonstrated excellent 2014 performance “as the company achieved year-over-year growth of approximately 55%,” he said.
Significant Wattenberg infrastructure was placed in service last year, including the Lancaster cryogenic plant, Front Range NGL pipeline, and more than 300 MMcfd additional field compression. These expansions, continued strong reservoir performance along with enhanced drilling and completions efficiencies underpinned production growth there, Walker said.
He told analysts in a webcast that Anadarko considers the Wattenberg to be its best asset for short-term investing given recent plummeting oil prices.
In Wattenberg, Anadarko operated an average of 12 horizontal rigs and drilled 82 wells during the fourth quarter. The company’s operated horizontal program averaged 148,000 boe/d, an increase of 12% from the fourth quarter 2013.
Contact Paula Dittrick at email@example.com.
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.