Anadarko Petroleum Corporation Raises Capital Spending to as Much as $8.5 Billion in 2014

At the annual investors conference in Boston today, Anadarko Petroleum announced that it expects its capital investments to be between $8.1 billion and $8.5 billion in 2014, which would represent about an 8% increase over the budget from last year, when it spent $7.7 billion. 

"Anadarko is uniquely positioned to build upon our multi-year track record of success and to deliver sustained growth and unmatched optionality in 2014 and beyond," said the chairman, president, and CEO of Anadarko, Al Walker, in a statement. "Our 2014 capital program is again a prudent and disciplined approach that is within anticipated cash flow."

The company expects to spend approximately 70% of its capital expenditures budget on oil products. Anadarko said it will drill as many as 25 "high-potential" deep water exploration or appraisal wells, and it will continue its efforts to divest assets and provide value through active portfolio management. Its total expenditure expectations by product and area are in the table below:



Source: Company investor relations.

Of the onshore investments in the U.S., the company noted more than 80% will be put toward oil and liquids-rich opportunities, and therefore will increase its barrels of oil equivalent production to 625,000 per day, which would represent an increase of more than 10% over 2013 levels. It expects to increase its liquids volumes by 50,000 barrels per day. The company said much of the growth is expected to be driven by its Wattenberg Horizontal program in Colorado, its Eagleford Shale development in South Texas, and other liquids-rich growth plays, including the Wolfcamp Shale in West Texas and the East Texas/North Louisiana area.

Anadarko said that, as a result of the total investment, it should be able to raise its daily oil production by 40,000 barrels. The company anticipates it will increase its same-store sales -- which measure product performance of its continuing asset base -- between 6% and 7%, as it produced 274 million barrels of oil in 2013, and it expects that number to fall between 290 million and 294 million barrels of oil in 2014.

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The article Anadarko Petroleum Corporation Raises Capital Spending to as Much as $8.5 Billion in 2014 originally appeared on Fool.com.

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