Anadarko Petroleum Provides 2018 Capex Guidance - Quick Facts

(RTTNews) - Anadarko Petroleum Corp. (APC) on Thursday provided its 2018 capital expectations and guidance, saying it expects to make capital investments in the range of $4.2 billion to $4.6 billion.

According to the company, the capital program is designed to enhance shareholder value by delivering attractive margins and returns, while advancing the development of the company's core assets within discretionary cash flow.

Anadarko said it will allocate approximately 80 percent of capital toward the Delaware and DJ basins, including Anadarko midstream, and the deepwater Gulf of Mexico. The capital program will deliver a cash return on invested capital of 20 percent.

Further, Anadarko noted that the capital program will result in approximately 14-percent oil growth year-over-year, which is 19-percent oil growth per debt-adjusted-share.

"Our repositioned asset footprint is built to succeed in a market where oil prices exhibit volatility in a $45-$60 environment, with gas averaging $3 per Mcf (thousand cubic feet). We expect next year's capital expenditures to be inside of discretionary cash flow at $50 and $3, while generating free cash flow of more than $700 million at the current strip," Anadarko Chairman, President and CEO Al Walker said.