How Is Anadarko Petroleum Corp Likely To Grow In The Next 2 Years?

Anadarko Petroleum Corp (NYSE: APC) displayed considerable growth in revenue in 2017, owing to the resiliency displayed by oil and gas prices. However, the company’s top line was negatively impacted by a series of unfortunate safety accidents through the year, which also tarnished the reputation of the company. Looking forward, the Organization of Petroleum & Exporting Companies (OPEC) and non-OPEC allies’ decision to extend its production cuts would continue to support the company’s top line. However, the company plans to continue its focus on value over volume while investing in high-margin scalable oil assets.

Our revenue estimates for the next two years are outlined in our interactive dashboard. Revenue in FY 2019 is expected to be ~13.71 bil and display a CAGR of ~12%. We arrive at this revenue figure by breaking down segment-wise growth for each revenue driver, detailed analysis of which are presented in our dashboard analysis.    

The company’s crude oil division is expected to be a major revenue contributor over the next two years, benefiting from both higher volume and higher prices. The company’s Delaware basin, the DJ Basin, and the deepwater assets in the Gulf of Mexico (GOM) is expected to drive a majority of this growth. Additionally, the oil and gas company plans to alter its product mix and expand its liquids exposure from around 40% in 2010 to over 65% in the coming years. Since the company has already divested a large portion of its non-core and low-margin assets, it may be easy for the company to ramp up its oil production in its key basins and achieve this objective.

You can alter our assumed figures to arrive at your own revenue estimate for the company over the next two years.

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