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Gas industry

Anadarko Petroleum Corporation Announces 2011 Capital Program and Guidance

Strategic Insights

— 1 min read

Anadarko Petroleum Corporation has announced its 2011 capital program and guidance, setting a target for increasing sales volumes to a range of 244 to 248 million BOE (barrels of oil equivalent) and achieving a reserve-replacement ratio of more than 150 percent. The company plans to allocate approximately 15 percent of its 2011 capital budget to the ongoing development of its sanctioned mega projects, including the Jubilee field offshore Ghana and the Caesar/Tonga project in the Gulf of Mexico. Anadarko also plans to continue accelerating growth in the shale plays, with shale production expected to account for approximately 10 percent of the company's total daily sales volumes by the end of 2011.

Key Takeaways:

  • Anadarko plans to increase sales volumes to a range of 244 to 248 million BOE in 2011, driven by a projected increase of about 10 percent in liquids volumes that deliver higher margins.
  • The company expects to achieve a reserve-replacement ratio of more than 150 percent in 2011, with total 2011 capital expenditures projected to be between $5.6 and $6.0 billion.
  • Approximate 15 percent of the 2011 capital budget will be allocated to the ongoing development of the company's sanctioned mega projects, including the Jubilee field offshore Ghana and the Caesar/Tonga project in the Gulf of Mexico.
  • Anadarko plans to continue accelerating growth in the shale plays, with shale production expected to account for approximately 10 percent of the company's total daily sales volumes by the end of 2011.
  • The company will allocate approximately 10 percent of its 2011 capital program toward the Eagleford and Marcellus shale plays.
  • Anadarko plans to invest approximately $1 billion in drilling activities in 2011, with a focus on the company's worldwide offshore and deepwater programs.
  • The company will operate 10 rigs in 2011 in the Marcellus Shale and participate in more than 250 wells during the year.

Statistics:

  • Sales volumes expected to range from 244 to 248 million BOE in 2011.
  • Reserve-replacement ratio expected to exceed 150 percent in 2011.
  • Total 2011 capital expenditures projected to be between $5.6 and $6.0 billion.
  • Capital allocation to sanctioned mega projects: approximately 15% of 2011 capital budget.
  • Capital allocation to shale plays: approximately 10% of 2011 capital program.

Sources:

  • Anadarko Petroleum Corporation. "Anadarko Petroleum Corporation Announces 2011 Capital Program and Guidance." Marketwire, Feb 24, 2011.
  • Anadarko Petroleum Corporation. "Anadarko Petroleum Corporation's 2010 Annual Report on Form 10-K." Anadarko Petroleum Corporation, 2010.

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