Anadarko Sees Lower 2015 Capital Spending, Rig Activity -- Update

By Tess Stynes 

Anadarko Petroleum Corp. projected capital spending for 2015 of roughly $5.4 billion to $5.8 billion, about a third lower than last year's level.

The oil-and-gas exploration and production company also joins a host of other energy companies to pull back on plans for U.S. onshore drilling activity and well completions amid a slump in oil prices.

"In the current market, we believe it is prudent to reduce capital investments and position the company for the future, rather than to pursue year-over-year growth," Chairman and Chief Executive Al Walker said.

Mr. Walker said Anadarko plans to reduce its short-cycle U.S. onshore rig activity by 40% and defer about 125 onshore well completions.

The Woodlands, Texas-based company has divested some of its holdings abroad in recent years, including its China unit, to raise cash to focus on extracting oil from unconventional formations in the U.S. Other U.S. companies, including Apache Corp. and Devon Energy Corp. have shed foreign assets to focus on domestic oil and gas.

Anadarko is expected to provide more details during its investor conference Tuesday.

Write to Tess Stynes at [e-mail]

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