Flooding will trim Anadarko sales volumes

Anadarko Petroleum Corp. (NYSE: APC) said Thursday that it expects flood damage will reduce its sales volumes by about 2.5 million barrels of oil equivalent.

Road, bridge and rail damage have affected the oil company’s ability to move heavy equipment such as rigs. The company said disruptions to drilling and other activities in the area will lead to temporary delays of expansion in the Wattenberg field in Northern Colorado.

Anadarko, however, believes that its total annual sales volumes will reach 281 million to 287 million barrels of oil equivalent, the same amount the company mentioned when it announced its second-quarter earnings in July.

Anadarko CEO Al Walker called the company’s horizontal drilling program in the Wattenberg field “one of our most important areas of operation.”

“As conditions improve, we expect to safely accelerate activity in the field to enable its tremendous production growth to continue,” Walker said in a statement. “This includes plans to drill 350 to 400 new horizontal wells in 2014, as well as to complete infrastructure expansions throughout the field.”

Anadarko shut off about 675 of its wells after flooding struck Northern Colorado last month. The company operates more than 5,800 wells, 2,500 storage tank facilities and 3,200 miles of pipeline in the Greater Wattenberg area.

“We have done preliminary assessments and don’t expect the damages to our facilities to be material to the company,” an Anadarko spokesman said in an email.


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