Anadarko 3Q14 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. Full transcripts can be found at Seeking Alpha

The current commodity price environment has no impact on what we see over the next 4-5 years

“The current commodity price environment is going to have little to no impact on what we see over the next four to five years for things that we would be involved within ’15 with our exploration plan.

Let’s just start with that. If you move down from there, I think our current view on commodity prices is we want to watch this environment a little longer. I think we all are recognizing that there is a very steep decline we have seen.”

Market isn’t in equilibrium

“The market has most peoples’ estimation not yet quite down the equilibrium and we don’t know if that is going to be at a higher price than where the current curve looks like or something lower.”

We growth through cash flow, not debt

“we have been pretty consistent in saying that we want to try to grow through cash flow. I think the ability to grow through cash flow and cash in this environment and not take on debt to be able to meet your needs makes our balance sheet and the way in which we run our company from a financial discipline perspective, consistently unique. ”

Volatility is a reminder that the business hasn’t always existed at high multiples and it wont stay there forever

“here is a lot of volatility in the commodity market that has led to a lot of volatility in the capital markets. It has not changed our view or our timing on doing something, but it has caused us to realize that as opposed, say, three to six months ago. It is not always incredibly high multiples and anyone that think those types of multiples are permanent and sustained across commodity cycles, hadn’t been paying attention.”

Thanks for raising your price target

“Scott, before you get off the line, I just want to say it didn’t go unnoticed by me this morning, that you raised your price target on us a $2 per share in light of all of the market noise and things that we have been achieving through the course of the year. We really appreciate that.”