R. A. Walker, Chairman, President and CEO reported that their Niobrara Wattenberg asset’s growth “has surpassed even our expectations. You might recall during 2013 this asset had grown to more than 100,000 BOE per day and in 2014 volumes grew another 60,000 BOE per day or about 55%.”
He also said that “Wattenberg’s exceptional performance was facilitated by the growing up of our acreage positions, outstanding reservoir performance, improved efficiencies, enhanced drilling and completions and importantly the investments we made in key infrastructure expansions. Now we’ve taken that same model and are working to replicate this success in the emerging Wolfcamp Shale opportunity in West Texas.”
Mr. Walker also talked about the current market environment for oil. He said that: “As we mentioned earlier we’re approaching 2015 with caution, given the uncertainty surrounding commodity prices and service cost. We will provide you details about our 2015 capital program and guidance for key performance metrics on our investor call on March 3rd.
When asked by an Analyst about their 2015 capital spending, Mr Walker explained: “our capital plan for 2015 will be significantly lower than it was for 2014. And I think you can expect it will probably be in line with the type of reductions you have seen from our peers.” I think with that, coupled with the comments I made about not chasing growth and a low environment for commodities and economics and that we want to maintain flexibility doing this along with financial capability, those are going to be watchwords. I mean we don’t really see the need to grow in an environment where we don’t have well head economics, purely for the simple purpose of having production growth as an objective.”
Anadarko Petroleum is currently one of the largest Niobrara Operators and controls over 350,000 net mineral acres in the Niobrara Play.