Summary
Occidental Petroleum Corporation (OXY) has filed an 8-K report following its completion of the Anadarko Petroleum Corporation (Anadarko) acquisition on August 8, 2019. This filing primarily serves to provide preliminary guidance for Anadarko's U.S. onshore and offshore assets for the third quarter and full-year 2019. This guidance is based on Anadarko's estimates available to Occidental at the time of the merger's completion, as Anadarko itself had not provided updated guidance prior to the acquisition. The company anticipates U.S. production from Anadarko's legacy assets to be between 585-630 Mboed for Q3 2019 and 605-630 Mboed for the full year 2019. Capital expenditures for these U.S. assets are projected at $4.1 billion, notably excluding costs associated with Anadarko's Africa assets (which are held for sale) and Western Midstream Partners, LP. The report also notes that Anadarko's second-half 2019 production may be impacted by several factors, including planned downtime in the Gulf of Mexico, processing limitations in the D.J. Basin, and delays/downtime in the Delaware Basin.
Key Highlights
- 1Occidental Petroleum completed its acquisition of Anadarko Petroleum on August 8, 2019.
- 2Provides initial guidance for Anadarko's U.S. assets post-acquisition.
- 3Q3 2019 U.S. production guidance for Anadarko assets: 585 – 630 Mboed.
- 4Full-Year 2019 U.S. production guidance for Anadarko assets: 605 – 630 Mboed.
- 5Full-Year 2019 Capital Spend guidance for U.S. assets (excluding Africa and Western Midstream): $4.1 Billion.
- 6Factors influencing H2 2019 production include planned Gulf of Mexico downtime, D.J. Basin processing limitations, and Delaware Basin well delays/downtime.
- 7Anadarko's Africa assets are classified as 'held for sale'.