Why Are Crude Oil Operations Important For Anadarko?

-14.52%
Downside
72.77
Market
62.20
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APC
Anadarko Petroleum

Anadarko’s crude oil operations accounted for more than 50% of its revenue and EBITDA in 2010, while natural gas accounted for over 30% of its revenue and EBITDA. However, over the years, the company’s production mix has further tilted towards crude oil, making it the largest driver of its value going forward. The primary reason for this shift has been the higher production growth from Anadarko’s crude oil plays. In addition, the ongoing slump has impacted the natural gas price realizations more than the crude oil price realizations. Consequently, the crude oil operations deliver higher EBITDA than Anadarko’s other divisions.

APC-Q&A7-2

Have more questions about Anadarko Petroleum (NYSE:APC)? See the links below:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Anadarko Petroleum

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