Anadarko Petroleum Corp. said Thursday onshore oil production is exceeding expectations, particularly from the Permian Basin's Delaware sub-basin and Wattenberg field, leading it to raise 4Q2015 guidance by as much as 5%.
Total oil sales volumes in the final three months of this year are expected to be more than 15,000 boe/d higher year/year at 314,000-319,000 boe/d.
"This outperformance is the primary contributor to a 2 million boe increase in the company's total fourth quarter sales volume guidance, resulting in a new range of 70 million boe to 72 million boe," management said.
Anadarko's total volumes in 3Q2015 were at the high end of guidance at 72 million boe, versus 78 million boe in 3Q2014, reduced in part by selling Powder River Basin volumes of 900,000 boe (see Shale Daily, Oct. 28).
Continued efficiency gains are driving capital expenditures lower, with investment in 4Q2015 expected to be "at or below" the midpoint of current spending guidance. The company also said it is still making "meaningful improvements" to its cost structure, with direct oil and natural gas operating expenses per boe likely to be below the low end of its forecast.
The Heidelberg development in the deepwater Gulf of Mexico also is "well ahead of schedule," with ramp-up from three initial wells expected in 1Q2016, three months ahead of schedule.
"In 2015, we set out to preserve and build value by focusing a greater percentage of our capital investments on longer-dated projects, while driving improved efficiencies into every aspect of our business, carefully managing our cost structure and accelerating value through asset monetizations," CEO Al Walker said.
"As we move closer to the end of the year and turn our focus toward 2016, I am increasingly encouraged by our results and proud of the work our employees and service providers have done to make Anadarko a better company by maximizing performance in a difficult macro environment. We are committed to a continued disciplined and value-focused approach in 2016 with capital spending expected to be significantly lower and aligned with cash in-flows from operations and targeted asset monetizations."
Anadarko, headquartered in The Woodlands north of Houston, also said its $3 billion unsecured credit facility has been extended to 2021 from 2020, while the $2 billion 364-day credit facility was extended to January 2017 from January 2016.