The management team of Anadarko Petroleum Corp. is becoming more optimistic that crude oil prices will increase to $60/bbl and remain "sustained" into 2017, allowing operations in the deepwater Gulf of Mexico (GOM), as well as the Permian and Denver-Julesburg (DJ) basins, to expand by later this year, CEO Al Walker said Wednesday.
"The more we feel comfortable about that sustained $60 price environment, the more likely you will see us increase capital," Walker said during an hour-long conference call to discuss quarterly results.
In addition to its increased enthusiasm for higher oil prices, Anadarko has raised the midpoint of full-year volumes guidance (adjusted for sales) by 2 million boe, to 277-281 million boe. The higher output is coming even as capital expenditures (capex) fell by more than half from a year ago to $608 million. Asset sales by the end of this year now are forecast to hit $3.5 billion -- the high end of the target.
"The cautious approach we outlined for oil price recovery in the beginning of 2015 has played out much as we anticipated," Walker said. "It now appears U.S. oil supply peaked at around 9.6 million b/d, and we expect it to bottom out at around 8 million b/d, all the while with global demand now exceeding expectations.Read more by clicking here.
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