Anadarko Petroleum Cuts '15 Capital Expenditures By A Third
March 3 (Reuters) - Anadarko Petroleum Corp said on Tuesday it will reduce spending by about 33 percent this year, as the exploration and production company responds to lower crude oil prices.
Oil prices have fallen by more than half since June as supplies from sources including North American shale fields grow in a time of waning demand. To conserve cash, exploration and production companies like Anadarko are slashing budgets and cutting rig counts.
"We don't see value in chasing growth in this environment," Al Walker, Anadarko's chief executive officer, told analysts on a conference call.
The Houston company forecast 2015 capital investments in the range of $5.4 billion to $5.8 billion, excluding those associated with its Western Gas Partners LP unit.
In addition to earmarking 60 percent of its budget for onshore shale wells, Anadarko said it plans to drill nine to 12 deepwater exploration wells offshore Colombia, Kenya and the Gulf of Mexico.
Anadarko also plans to cut U.S. onshore rig activity by 40 percent and defer about 125 onshore well completions in the Wattenberg field in Colorado, the Eagle Ford shale and Permian Basin in Texas.
Anadarko expects total output of 295 million to 301 million barrels of oil equivalent (mmboe) in 2015, nearly in line with the 301 mmboe it produced last year.
So far this year, Anadarko has agreed to sell $700 million in oil and gas properties and more deals are possible, but there are no plans to tap capital markets, the Houston company told investors.
The company's shares rose 0.2 percent to $82.21 in late-morning trading on the New York Stock Exchange. Up to Monday's close, the stock has fallen nearly 26 percent since June.
(Reporting by Shubhankar Chakravorty in Bengaluru and Anna Driver in New York; Editing by Sriraj Kalluvila)
Copyright 2016 Thomson Reuters. Click for Restrictions.
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