Anadarko Sees Big Oil Growth In Permian, Eyes Powder River Basin

Anadarko Petroleum Corp.’s (NYSE: APC) average oil production in the Permian’s Delaware Basin jumped 88% during second-quarter 2018 as the company works to add more wells to pads and gain overall optionality by eyeing opportunities in Wyoming’s Powder River Basin.

“Results in the Delaware Basin are the engine driving much of our recent success, and we are just getting started as we pace our midstream takeaway with our upstream development,” Anadarko CEO Al Walker said on an earnings call Aug. 1. “Our infrastructure buildout achieved several key milestones during the quarter with the startup of our Reeves Regional Oil Treating Facility [ROTF]” and commissioning of the North Loving ROTF subsequent to quarter end.

The company reported a day earlier that revenue increased to $3.29 billion for the second quarter, up from about $2.7 billion a year ago. U.S. onshore oil volumes grew by 47%, adjusted for divestitures, to 169,000 barrels of oil per day (bbl/d). Accounting for most of the growth was the Delaware Basin, where sales volumes were 62,000 bbl/d, up from 33,000 bbl/d a year ago.