Anadarko Petroleum Corporation announced February 20 details of its 2013 capital program and guidance, and provided additional information regarding its significant U.S. onshore growth opportunities, deepwater and international mega projects and industry-leading exploration program.
"With the outstanding momentum we established in 2012 and the opportunities our deep portfolio provides, we expect 2013 to be one of the best years in our company's history," Anadarko President and CEO Al Walker said. "Our 2013 capital investments will focus on projects that generate rates of return between 30 and more than 100 percent in the current commodity-price environment, while spending within cash flow. We expect to deliver sales-volumes growth of approximately five percent, with the year-over-year increase comprised almost entirely of higher-margin oil sales volumes. The projected increase in oil sales volumes will be largely driven by accelerated activity in our Wattenberg and Eagleford horizontal programs and the anticipated ramp up of oil volumes during the year at our El Merk facilities in Algeria.
"Accelerating value by advancing our high-margin deepwater and international oil and LNG (liquefied natural gas) mega projects remains a priority in 2013, and we expect to continue pursuing carry arrangements and opportunistic divestitures to further enhance the capital efficiency of our portfolio," added Walker. "Following our highly successful 2012 exploration program where we nearly doubled our original targeted resources, we plan to be among the most active deepwater explorers in the world again in 2013. We expect to drill approximately 25 deepwater exploration and appraisal wells this year, including high-potential prospects in the Gulf of Mexico and three potentially play-opening international opportunities."
The company expects to increase U.S. onshore sales volumes by approximately 10 percent over 2012, increasing sales of higher-margin oil volumes by approximately 30,000 barrels per day. This growth is highlighted by the company's liquids-rich Wattenberg field, where the company holds significant mineral-interest ownership and is generating rates of return exceeding 100 percent at today's prices. Anadarko plans to capitalize on these exceptional economics by nearly doubling its horizontal drilling activity in the field. In addition to Wattenberg, Anadarko plans to invest the majority of its 2013 U.S. onshore capital in its major growth plays that generate the highest returns and margins, such as the Eagleford Shale, the East Texas Horizontal play, and the Permian Basin.
The company continues to expand the competitive advantage created by its large and growing midstream infrastructure, facilitating continued growth in its core operating areas. Anadarko expects to significantly improve its price realizations through the addition of 500 million cubic feet per day (MMcf/d) of processing capacity, along with equity positions in key infrastructure projects and contracted pipeline capacity.
Gulf of Mexico
Anadarko's 2013 unprecedented activity level in the Gulf of Mexico is under way, with plans to participate in six to eight exploration and appraisal wells during the year. This includes ongoing activity in the Shenandoah mini-basin, where the company already has encountered encouraging results from its Shenandoah appraisal well and the nearby Coronado prospect, with results from the