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What Will Anadarko's Drilling Program Look Like in 2014?

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What Will Anadarko's Drilling Program Look Like in 2014?

The Eagle Ford shale continues to be one of the Company’s most prolific plays, capable of generating returns in excess of 100%. The Eagle Ford shale also benefits from a carried-interest arrangement entered into in 2011 that conveyed 33.3% of the Company’s Eagle Ford and Pearsall shale assets to KNOC in exchange for the funding of $1.6 billion of Anadarko’s then-future development costs.

The carried-interest provided $500 million in 2011, $650 million in 2012 and the remainder in 2013. Shale Experts CapEx/Budgets database calculated capital spend for Anadarko in the eagle ford for 2013 at ~$500 million which is 1/8 of Anadarko's 2013 annouced unconventional resources capEx ($4 Billion)

With the carried-interest set to expire and Anadarko's Eagle Ford midstream infrastructure buildout…

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