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Ohio Utica Shale

Anadarko offers little information on Utica shale plans

By Bob Downing Published: May 7, 2013

Anadarko Petroleum Corp. today had little to say about Ohio's Utica shale.

The Utica shale drew no comments during the teleconference on the company's first quarter 2013 earnings and got scant attention in a related company report.

Nine shales were listed as getting capital investment in early 2013, but the Utica shale was not one of them.

The report listed one other unnamed play that will get $1 million in first quarter 2013.

Anadarko has 13 wells permitted or drilled in Ohio in Coshocton, Guernsey, Muskingum and Noble counties. But there are reports that the company has largely halted Ohio drilling. The company has said its Ohio plans will be disclosed later this year.


Here's the latest Anadarko financial report from Bloomberg News:

By Edward Klump

May 7 (Bloomberg) -- Anadarko Petroleum Corp., the oil explorer that’s expanding production in Colorado and Texas, reported first-quarter profit that surpassed analysts’ estimates as the company raised the top end of its 2013 forecast.

Net income fell to $460 million, or 91 cents a share, from $2.16 billion, or $4.28, a year earlier, The Woodlands, Texas- based company said yesterday in a statement. The company had a $1.8 billion tax-settlement gain a year earlier. Profit in the recent quarter, excluding a loss on derivatives and other one- time items, was $1.08 a share, topping the 95-cent average of 28 estimates compiled by Bloomberg. Revenue increased 13 percent to $3.89 billion.

Sales volumes climbed 11 percent in the first quarter to the equivalent of 71 million barrels of oil, which beat a Feb. 20 forecast of as much as 69 million barrels. Anadarko also boosted its full-year forecast to a range of 279 million to 287 million barrels of oil equivalent, from as much as 285 million previously.

"It’s a positive report," James Sullivan, a New York- based analyst at Alembic Global Advisors who has an overweight, or buy, rating on Anadarko shares and owns none, said by phone yesterday. He called it an "on track" quarter as the company moves ahead with major projects.

Rising Production

Anadarko has seen rising oil output from projects such as the Wattenberg field in Colorado and Texas’ Eagle Ford Shale, as well as gas output from the Marcellus Shale in Pennsylvania. Anadarko’s exploration includes work in the Gulf of Mexico and off the coast of Africa. It’s the U.S. oil and natural gas producer with the biggest market capitalization after ConocoPhillips among companies that don’t own refineries or a chemical unit.

The company’s output translated into record sales volumes of 793,000 barrels of oil equivalent a day in the first quarter. Anadarko’s Wattenberg field averaged more than 113,000 barrels a day. In Algeria, Anadarko and its partners began producing oil from the El Merk project. Anadarko said it also has interests in six deep-water wells currently being drilled around the world.

Anadarko continues to pursue the sale of some interests around the world. The company expects a sale of a stake off the coast of Mozambique this year, Chief Financial Officer Bob Gwin said on a conference call with analysts and investors today. Chief Executive Officer Al Walker said the company doesn’t have an exclusivity agreement at this point.

Possible Sales

"We’re really pleased with the indications of interest that we received a few weeks ago," Gwin said. "Obviously, we’re in discussions and working on the transaction."

Anadarko continues to work on a possible sale of Brazilian assets, which has been a "bit of a challenge," Gwin said. That process is in the early stages, with a transaction possible in 2013, he said. The company said it also may look to sell more stakes in the Gulf of Mexico.

Off the coast of Ghana, gross output of the Jubilee project is about 110,000 barrels of oil a day, Doug Lawler, a senior vice president at Anadarko, said on today’s conference call. That may climb to about 120,000 barrels a day later this year, he said.

Brent crude futures, a global benchmark, fell 4.9 percent from a year earlier to average $112.64 a barrel in the first quarter. Gas futures traded in New York averaged $3.48 per million British thermal units in the quarter, a 39 percent increase from a year earlier.

Anadarko fell 0.1 percent to $87.58 at 11:49 a.m. in New York.



See the most recent drilling report and an injection wells map From
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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.