Anadarko’s Answer: Disciplined Investing
Anadarko is aggressively pursuing opportunities but with discipline for corporate economics.
APC has substantially raised 2001 capital expenditures
- Maintaining strict project economic discipline
- Cost of finding, Rate of Return, Payout
- Considering customized hedging to ensure return for any vulnerable project
Economies of scale give APC comparative advantage as cost structure rises
- APC is the most active driller in the country
- Small players likely to be squeezed
Niche acquisitions if the value is right
- Purchase of Berkley helped fill out portfolio by adding mid-range opportunities
- Took advantage of relatively low Canadian values
Focus on technology
- Reduced exploration risk = better results on impact plays
- Improved efficiency in operations, drilling, reservoir management