Anadarko Petroleum Corp., The Woodlands, Tex., anticipates an initial 2016 budget of $2.8 billion, a reduction of 50% from the company’s actual 2015 capital investments and almost 70% from the 2014 total.
The move follows a fourth-quarter 2015 net loss of $1.25 billion and full-year net loss of $6.692 billion.
Al Walker, Anadarko chairman, president, and chief executive officer, said the company “did not expect oil prices to recover in 2015 and believed it could take well into 2016 before markets would stabilize on a sustained basis, costs would become more aligned with the new operating environment, and investments in short-cycle assets would be more attractive.”
The company estimates its proved reserves at yearend 2015 totaled 2.06 billion boe, comprising 52% liquids and 48% natural gas. Nearly 80% of its reserves are categorized as proved developed.