Anadarko Says To Monetize Up To $3B Of Assets In 2016

Reuters

March 1 (Reuters) - Oil and gas producer Anadarko Petroleum Corp said it plans to monetize up to $3 billion of assets this year amid a slump in crude oil prices.

The U.S. oil company has already closed or signed agreements to monetize about $1.3 billion of assets this year, it said last week.

Oil companies are selling assets in response to a more than 70 percent fall in crude oil prices that has made drilling uneconomical.

The Texas-based oil producer also lowered its total sales volumes forecast, excluding a pending divestiture, to 770,000-781,000 barrels of oil equivalent per day (boe/d) compared with 836,000 boe/d in 2015.

The new production forecast suggests a 7 percent decline from last year, according to Reuters calculations, deeper than the 1-4 percent output decline Anadarko had forecast earlier this month.

The company did not immediately respond to questions about the lowered forecast.

Anadarko said on Tuesday it expected 2016 capital expenditures to range between $2.6 billion and $2.8 billion, compared with its previous estimate of $2.8 billion.

The company said it cut its U.S. onshore rig count by 80 percent to five operated rigs, from an average of 25 in 2015.

Anadarko had slashed its quarterly dividend by 82 percent to 5 cents earlier this month in an attempt to preserve cash.

Shares of the company, which has fallen about 55 percent in the last one year, were up 3.5 percent at $39.29 in morning trading.

(Reporting by Arathy S Nair in Bengaluru; Editing by Savio D'Souza)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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