Anadarko 1Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Capital allocation and our development portfolio continues to be driven by rate of return, which favors oil and liquid-rich gas opportunities. And in spite the current strengthening in the natural gas prices, Anadarko will need to see a sustained prices, well above the current spot for dry gas opportunities to compete for capital in our portfolio.”

[in response to production drop forecast] “I think we have continued to address these question, it seems like almost every quarter, we certainly guide something we think hit, we see issues out there that we think we are trying to manage around. And, I think, as you can fully appreciate as we think about our business, we do not think about it quite as much quarter-to-quarter as maybe others do…It’s just it’s part of the drilling plans we talked about a couple of quarters ago as we start this infrastructure build out, you get into these spots from time-to-time that you throw a lot of downtime in, and this quarter is going to be one of those as we significantly enhance our infrastructure position in not just Eagleford, but in Wattenberg and Permian as well, but to a lesser extent from product impact.

“We don’t guide to the mid-point of our expectations. We guide to what we think we can achieve. So, sure, if we were able to achieve better than average results, we should actually achieve better than we have projected. But we also keep in mind that there are things that we have no control over whether being one of those mechanical issues being another.”

“the drilling folks are doing a fantastic job in improving our drilling efficiency and spud to spud time. So the machines are working faster. That gives an opportunity to enhance our results.”

“the advantage of having perpetual mineral positions is, you can let others prove up the play and we’ve been actively monitoring and gauging in some small farmhouse to encourage activity and what we have seen so far is very promising.”

“we are running 47 rigs in the U.S., we are building 900 million of cryo, and we are drilling a bunch of wells and successfully drilling a bunch of wells, most of them horizontal.”

“the Eagleford is doing quite well. We continue to drop for our drilling times down and we drilled a whole number of less than 10 day wells now. So if you put everything in play and look at the completion cost, we are now filling, completing and equipping those wells in the order of $5.5 million to $6 million. The EURs are north of 4.50. So we have had some really strong economics.”

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