Anadarko Becomes First US Oil Producer To Slash 2017 CAPEX
July 24 (Reuters) - U.S. oil producer Anadarko Petroleum Corp posted a larger-than-expected quarterly loss on Monday and said it would cut its 2017 capital budget by $300 million, the first major U.S. oil producer to do so, because of depressed oil prices.
Anadarko and the rest of the U.S. shale oil industry have been grappling with how to conserve cash and maintain growth opportunities even as crude prices have slumped since January.
Many Wall Street analysts had asked U.S. producers to consider cutting budgets, and it was unclear which company would do so first. Anadarko, the first major U.S. producer to report quarterly results, spared the guessing game.
Shares of Houston-based Anadarko fell 2.7 percent to $43 in after-hours trading on Monday. The company is slated to discuss the results on a Tuesday morning conference call with investors.
"The current market conditions require lower capital intensity given the volatility of margins realized in this operating environment," Anadarko Chief Executive Al Walker said in a statement.
Anadarko in March had forecast 2017 spending of $4.5 billion to $4.7 billion.
Anadarko, which operates in the U.S. Gulf of Mexico as well as Colorado and other U.S. shale regions, South America and Africa, posted a third-quarter loss of $415 million, or 76 cents per share, compared to $692 million, or $1.36 per share, in the year-ago period.
Excluding one-time items, Anadarko lost 77 cents per share. By that measure, analysts expected a loss of 36 cents per share, according to Thomson Reuters I/B/E/S.
Average daily sales volumes, the physical amount of crude and natural gas sold, fell 20 percent to 631,000 barrels of oil equivalent per day (boe/d).
Anadarko in May closed more than 3,000 wells in Colorado after a fatal home explosion was linked by local authorities to a well operated by the company.
Given those closings, Anadarko said it was trimming its 2017 production forecast to 644,000 boe/d, a 2 percent cut.
(Reporting by Ernest Scheyder; editing by Grant McCool and David Gregorio)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension