Anadarko Petroleum Corp., now caught in an expensive bidding war between Chevron Corp. and Occidental Petroleum Corp., reported its first quarter oil, natural gas and natural gas liquids volumes totaled 64 million boe, or around 715,000 boe/d.
No quarterly conference call is scheduled as Anadarko is in the midst of negotiating a merger agreement with Chevron estimated to be valued at close to $50 billion including debt. Occidental made a counter offer last Wednesday that is 20% higher and estimated to be worth around $57 billion.
As it stands, if Anadarko were to withdraw from the agreement with Chevron, it would have to pay a $1 billion break-up free. Chevron was scheduled to issue its first quarter results on Friday (April 26), where all questions likely would be centered around the merger.
Anadarko’s U.S. onshore assets averaged 465,000 boe/d in the first three months, while Gulf of Mexico output averaged a record 166,000 boe/d. Overseas, the company’s average production was 84,000 boe/d.
Worldwide, average sales volumes were 715,000 boe/d in 1Q2019 versus year-ago volumes of 643,000 boe/d. Oil sales hit 412,000 b/d, compared with 371,000 b/d in the year-ago period. Natural gas volumes climbed slightly year/year to 1.15 Bcf/d from 1.05 Bcf/d. Liquids volumes increased to 37,000 b/d from 33,000 b/d.
The company said it is making solid progress on the proposed Mozambique liquefied natural gas (LNG) export project, with sales and purchase agreements (SPA) now totaling more than 9.5 million metric tons/year (mmty). Two additional SPAs “in the final stages of execution” would, if they are completed, bring the total volumes to more than 11 mmty.
During the quarter, the export project was designated as a first mover by the Mozambique government, which would allow the marine facilities to support the onshore LNG industry. The company remains positioned to take a final investment decision before the end of June.
Anadarko reported a net loss in 1Q2019 of $15 million (minus 3 cents/share), versus year-ago net profits of $121 million (22 cents). Net cash fell year/year to about $1.13 billion from $1.43 billion. Free cash flow reversed to $245 million in 1Q2019 from a year-ago loss of $302 million.