Analysis of Reportable Segments
Anadarko Petroleum Corp. operates in 3 segments: Oil and gas exploration and production; Midstream; and Marketing.
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Analysis of Debt
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Segment Profit Margin
Anadarko Petroleum Corp., profit margin by reportable segment
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Oil and gas exploration and production | |||||
| Midstream | |||||
| Marketing |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Oil and Gas Exploration and Production Segment Profit Margin
- The profit margin in this segment exhibited significant variability over the five-year period. Starting at 70.42% in 2012, it experienced a slight decrease to 68.45% in 2013, followed by a notable increase to 84.33% in 2014. However, this peak was succeeded by a marked decline to 56.32% in 2015 and a further decrease to 52.67% in 2016. The overall trend indicates strong profitability initially, reaching a high point in 2014, then a sharp decline over the subsequent two years, reflecting increased cost pressures or reduced revenue relative to expenses in this segment.
- Midstream Segment Profit Margin
- The midstream segment's profit margin demonstrated a somewhat fluctuating pattern with an overall moderate upward trend until 2015. Starting at 36.92% in 2012, it decreased slightly to 34.05% in 2013 and then increased marginally to 36.22% in 2014. The margin peaked significantly at 54.6% in 2015, indicating improved profitability or operational efficiencies. However, in 2016, the margin dropped to 39.11%, suggesting some decline in financial performance or operational challenges during the final observed year.
- Marketing Segment Profit Margin
- The marketing segment consistently recorded negative profit margins throughout the period, indicating persistent losses. The margin started at -20.97% in 2012 and declined further to -23.54% in 2013. A notable deterioration occurred in 2014 with a margin of -42.36%, representing substantial losses. Although there was some recovery in 2015 and 2016, with margins of -35.52% and -29.6% respectively, the segment remained unprofitable, though the losses moderated somewhat after the 2014 low point.
Segment Profit Margin: Oil and gas exploration and production
Anadarko Petroleum Corp.; Oil and gas exploration and production; segment profit margin calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDAX | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment profit margin = 100 × Adjusted EBITDAX ÷ Revenues
= 100 × ÷ =
- Adjusted EBITDAX
- The adjusted EBITDAX shows a fluctuating trend over the five-year period. It increased from 8,500 million USD at the end of 2012 to a peak of 12,505 million USD in 2014, indicating strong operating performance during this interval. However, there is a significant decrease thereafter, with values dropping sharply to 4,456 million USD in 2015 and further declining to 3,604 million USD in 2016.
- Revenues
- Revenues similarly exhibit an upward trend from 12,070 million USD in 2012 to 14,828 million USD in 2014, followed by a marked decline in subsequent years. Revenues decreased to 7,912 million USD in 2015 and continued to decrease to 6,842 million USD in 2016. This pattern aligns with the trend observed in adjusted EBITDAX, suggesting a correlation between revenue generation and operating earnings.
- Segment Profit Margin
- The segment profit margin percentage displays a peak in 2014 at 84.33%, indicating high profitability relative to revenues during that year. Before 2014, the margin was moderately high but declined from 70.42% in 2012 to 68.45% in 2013. Post-2014, a steep decline is evident, with margins falling to 56.32% in 2015 and continuing downward to 52.67% in 2016. This decreasing profit margin highlights reduced efficiency or increased costs relative to revenues in the latter years.
- Overall Observations
- The data reflect a period of strong financial performance culminating in 2014, followed by a significant downturn in 2015 and 2016. Both revenues and adjusted EBITDAX exhibited substantial growth until 2014, but then both metrics sharply contracted, indicating challenges in sustaining business profitability. The reduction in segment profit margin further evidences pressure on profitability, likely due to either increased operational costs, decreased prices, or other market factors affecting the oil and gas exploration and production segment during this timeframe.
Segment Profit Margin: Midstream
Anadarko Petroleum Corp.; Midstream; segment profit margin calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDAX | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment profit margin = 100 × Adjusted EBITDAX ÷ Revenues
= 100 × ÷ =
- Adjusted EBITDAX
- The adjusted EBITDAX exhibited an overall upward trend from 2012 to 2016, increasing from US$474 million in 2012 to a peak of US$1,056 million in 2015 before declining to US$797 million in 2016. This indicates significant growth in operational profitability until 2015, followed by a notable decrease in the final year of the period analyzed.
- Revenues
- Revenues consistently increased throughout the five-year period, rising steadily each year from US$1,284 million in 2012 to US$2,038 million in 2016. This reflects sustained growth in the segment's capacity to generate sales, with the highest revenue achieved in 2016.
- Segment Profit Margin
- The segment profit margin showed some fluctuation across the years. It started at 36.92% in 2012, decreased slightly to 34.05% in 2013, then rose again to 36.22% in 2014. A substantial increase occurred in 2015, reaching 54.6%, followed by a decline to 39.11% in 2016. This pattern suggests variability in operational efficiency or cost control, peaking sharply in 2015 before normalizing in the subsequent year.
Segment Profit Margin: Marketing
Anadarko Petroleum Corp.; Marketing; segment profit margin calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDAX | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment profit margin = 100 × Adjusted EBITDAX ÷ Revenues
= 100 × ÷ =
The analysis of the marketing segment data over the period from 2012 to 2016 reveals several noteworthy trends regarding financial performance indicators.
- Adjusted EBITDAX
- The Adjusted EBITDAX figures consistently remained negative throughout the observed period, indicating ongoing operational losses in the marketing segment. The losses deepened from -104 million USD in 2012 to a peak loss of -219 million USD in 2014. Following this, there was a gradual improvement with the losses decreasing to -156 million USD by 2016, though they remained substantial and indicative of financial challenges within the segment.
- Revenues
- Revenue figures in the marketing segment demonstrated relative stability, fluctuating modestly between 496 million USD in 2012 and 549 million USD in 2015. The highest revenue point occurred in 2015, after which there was a slight decline to 527 million USD in 2016. Despite this variation, revenues did not exhibit a strong upward or downward trend over the five-year period, maintaining a general plateau around the 500 million USD level.
- Segment Profit Margin (%)
- The segment profit margin consistently reflected negative performance, emphasizing operational inefficiency or high cost structures relative to revenues. The margin deteriorated from -20.97% in 2012, worsening to -42.36% in 2014, mirroring the peak losses observed in Adjusted EBITDAX. Thereafter, the margin showed improvement, reducing the deficit to -29.6% by 2016, yet it remained well below breakeven, signaling continued lack of profitability in the marketing segment.
Overall, the marketing segment exhibited persistent losses with some signs of improvement after 2014. While revenues remained relatively stable without significant growth, the adjustments in EBITDAX and profit margins suggest efforts or market conditions that helped reduce losses but did not achieve profitability. The financial results imply ongoing operational challenges that may require strategic actions to enhance efficiency and overall segment profitability.
Segment Return on Assets (Segment ROA)
Anadarko Petroleum Corp., ROA by reportable segment
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Oil and gas exploration and production | |||||
| Midstream | |||||
| Marketing |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
The analysis of the annual reportable segment Return on Assets (ROA) data reveals distinct trends across the segments over the five-year period from 2012 to 2016.
- Oil and Gas Exploration and Production Segment
- This segment demonstrates a generally positive but fluctuating ROA. The ROA increased from 26.61% in 2012 to a peak of 38.22% in 2014, indicating a period of high efficiency in asset utilization or profitability. Following this peak, there is a significant decline over the subsequent years, dropping sharply to 17.31% in 2015 and further to 14.86% in 2016. This downward trend may suggest reduced asset productivity or profitability challenges in the last two years of the period.
- Midstream Segment
- The midstream segment displays relatively stable but moderate ROA values initially, starting at 10.63% in 2012 and slightly decreasing to 9.39% in 2013. A minor improvement is observed in 2014 with an ROA of 9.86%. Notably, there is a marked increase in 2015 to 17.97%, indicating a substantial gain in asset efficiency or profitability. However, this improvement is somewhat reversed in 2016, with the ROA decreasing to 13.48%. Overall, while the midstream segment maintains positive returns, the variability suggests fluctuating operational or market conditions impacting asset returns.
- Marketing Segment
- The marketing segment shows highly negative and volatile ROA values in 2012 and 2013, with ROAs of -110.64% and -1388.89%, respectively. These extreme negative figures suggest significant losses or impairments relative to assets in these years. There is no data available from 2014 to 2016, which might imply discontinuation of segment reporting, restructuring, or a decision to omit this segment from the disclosure. The absence of data makes it difficult to assess later trends but the early volatility indicates significant challenges in this segment during the observed period.
In summary, the return on assets for oil and gas exploration and production shows initial growth followed by a notable decline, suggesting shifting conditions affecting profitability. The midstream segment exhibits moderate but variable returns with a notable spike in 2015 before pulling back. The marketing segment experiences severe negative returns during the early years, with no subsequent data to evaluate further developments.
Segment ROA: Oil and gas exploration and production
Anadarko Petroleum Corp.; Oil and gas exploration and production; segment ROA calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDAX | |||||
| Net properties and equipment | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment ROA = 100 × Adjusted EBITDAX ÷ Net properties and equipment
= 100 × ÷ =
- Adjusted EBITDAX
- The Adjusted EBITDAX exhibited a fluctuating trend over the examined periods. It increased from 8,500 million US dollars in 2012 to a peak of 12,505 million US dollars in 2014, indicating a period of strong operational performance and cash flow generation. However, from 2015 onwards, there was a significant decline, dropping sharply to 4,456 million US dollars in 2015 and further to 3,604 million US dollars in 2016. This decline suggests considerable challenges impacting profitability, possibly linked to external market conditions or internal operational issues.
- Net Properties and Equipment
- The net properties and equipment showed a gradual downward trend over the five-year period. Starting at 31,939 million US dollars in 2012, the value slightly increased in 2013 but decreased thereafter, falling to 24,251 million US dollars by the end of 2016. This consistent reduction may reflect asset disposals, impairments, or reduced investment in capital expenditures within the segment.
- Segment Return on Assets (ROA)
- The segment ROA demonstrated a pattern consistent with the Adjusted EBITDAX results. There was an initial increase from 26.61% in 2012 to 38.22% in 2014, representing improved efficiency and profitability in asset utilization. Subsequently, ROA declined markedly to 17.31% in 2015 and further to 14.86% in 2016, pointing to decreased returns generated from the segment's asset base during this latter period.
- Overall Observations
- The data reflects a period of peak operational and financial performance in 2014, followed by a pronounced decline in subsequent years. The reductions in EBITDAX and ROA post-2014, coupled with the steady decrease in net properties and equipment, may indicate broader industry challenges or strategic shifts impacting the segment's profitability and asset base. Such trends warrant further investigation into underlying causes and potential management responses to address the decline.
Segment ROA: Midstream
Anadarko Petroleum Corp.; Midstream; segment ROA calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDAX | |||||
| Net properties and equipment | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment ROA = 100 × Adjusted EBITDAX ÷ Net properties and equipment
= 100 × ÷ =
- Adjusted EBITDAX
- The Adjusted EBITDAX shows an overall upward trend from 2012 to 2016, with values increasing from 474 million USD in 2012 to a peak of 1,056 million USD in 2015. However, there is a noticeable decline in 2016, where the value drops to 797 million USD, indicating some volatility or potential operational or market challenges after the peak year.
- Net Properties and Equipment
- The net properties and equipment values increased steadily from 4,459 million USD in 2012 to 6,697 million USD in 2014. Following that, there is a decline in 2015 to 5,876 million USD, and a slight increase again in 2016 to 5,913 million USD. This suggests substantial capital investment up to 2014, followed by asset disposals or impairment, and then some stabilization in the latter years.
- Segment Return on Assets (ROA)
- The segment ROA starts at 10.63% in 2012 and drops slightly to 9.39% in 2013, before recovering moderately to 9.86% in 2014. It then experiences a significant jump to 17.97% in 2015, aligning with the peak in Adjusted EBITDAX, reflecting enhanced profitability or asset efficiency. In 2016, ROA declines to 13.48%, suggesting some decrease in profitability or asset utilization, though it remains above the initial years.
Segment ROA: Marketing
Anadarko Petroleum Corp.; Marketing; segment ROA calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDAX | |||||
| Net properties and equipment | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment ROA = 100 × Adjusted EBITDAX ÷ Net properties and equipment
= 100 × ÷ =
The analysis of the Marketing segment data over the five-year period reveals several key trends and insights. Adjusted EBITDAX, which reflects earnings before interest, taxes, depreciation, amortization, and exploration expenses, consistently remained negative throughout the entire period, indicating ongoing operational challenges. The value deteriorated from -104 million US dollars in 2012 to its lowest point of -219 million US dollars in 2014. This negative trend slightly improved in subsequent years with Adjusted EBITDAX increasing to -195 million in 2015 and further to -156 million in 2016, but it remained significantly below breakeven.
The net properties and equipment values show a sharp decline from 94 million US dollars in 2012 to 9 million in 2013, after which no data is reported for the following years. This steep reduction could imply asset disposals, impairment, or reclassification activities, reflecting a possible reduction in the asset base utilized by the segment.
The Segment Return on Assets (ROA) percentage exhibits extreme negative values, starting at -110.64% in 2012, sharply dropping to -1388.89% in 2013, with no subsequent figures reported. These figures point towards significant inefficiencies and poor profitability relative to the assets employed during that period, indicating that the segment generated considerable losses relative to its asset base.
Overall, the Marketing segment displayed continuous financial distress with deeply negative earnings and returns, alongside a notable contraction of net assets early in the observed period. The slight recovery in EBITDAX after 2014 suggests some operational improvements, though profitability remained elusive by the end of 2016. The missing data in later years constrains a full assessment of recent trends but the available metrics clearly indicate ongoing challenges in achieving financial stability and asset productivity within the segment.
Segment Asset Turnover
Anadarko Petroleum Corp., asset turnover by reportable segment
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Oil and gas exploration and production | |||||
| Midstream | |||||
| Marketing |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Oil and Gas Exploration and Production Segment
- The asset turnover ratio for this segment experienced a gradual increase from 0.38 in 2012 to a peak of 0.45 in 2014. However, following this peak, there was a noticeable decline to 0.31 in 2015 and further to 0.28 in 2016. This trend suggests an initial improvement in the efficiency of asset utilization in generating revenue until 2014, followed by a diminishing efficiency in the subsequent years.
- Midstream Segment
- The midstream segment displayed relatively stable asset turnover ratios, starting at 0.29 in 2012 and slightly decreasing to 0.27 in 2014. However, from 2014 onwards, there was a modest upward trend, reaching 0.33 in 2015 and 0.34 in 2016. This indicates a mild improvement in asset efficiency in the later years, after a brief period of decline.
- Marketing Segment
- The marketing segment shows a significant anomaly with an exceptionally high asset turnover ratio of 5.28 in 2012, followed by an even more pronounced increase to 59 in 2013. Data for subsequent years are not available, which limits the analysis. The extreme values in the available years suggest either a very high efficiency in asset utilization or potential irregularities or changes in reporting or measurement criteria during these periods.
Segment Asset Turnover: Oil and gas exploration and production
Anadarko Petroleum Corp.; Oil and gas exploration and production; segment asset turnover calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Net properties and equipment | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment asset turnover = Revenues ÷ Net properties and equipment
= ÷ =
The analysis of the oil and gas exploration and production segment over the five-year period reveals several noteworthy trends in revenues, net properties and equipment, and asset turnover ratios.
- Revenues
- Revenues showed a general upward trend from 2012 to 2014, increasing from $12,070 million to $14,828 million, which indicates a period of growth and potentially favorable market conditions or enhanced production capabilities. However, a significant decline occurred in 2015, with revenues dropping to $7,912 million, and this downward trend continued in 2016, falling further to $6,842 million. The marked revenue decrease after 2014 likely reflects adverse market factors such as lower commodity prices or reduced production volumes.
- Net Properties and Equipment
- Net properties and equipment values remained relatively stable from 2012 to 2014, peaking at $33,409 million in 2013 before a slight decline to $32,717 million in 2014. Post-2014, there was a pronounced decrease in net properties and equipment, dropping to $25,742 million in 2015 and further down to $24,251 million in 2016. This declining asset base suggests possible asset sales, impairments, or reduced capital investment aligning with the reduced revenue and potentially reflecting a strategic shift or operational challenges in asset management.
- Segment Asset Turnover
- The segment asset turnover ratio, measuring efficiency in generating revenues from assets, showed a positive trend between 2012 and 2014, rising from 0.38 to 0.45. This indicates improved utilization of assets during this period. However, there was a sharp decline in 2015 to 0.31 and a further decrease to 0.28 in 2016, consistent with the drops in both revenues and asset values. The declining turnover ratio suggests that the segment became less efficient at converting its asset base into sales in the latter years.
Overall, these patterns imply that the segment experienced growth and improving efficiency through 2014, followed by a period of contraction and diminished operational efficiency from 2015 onwards. The decline in revenues, asset base, and asset turnover ratio collectively point toward challenges faced in the business environment or internal operational issues affecting the segment's performance in the most recent years covered.
Segment Asset Turnover: Midstream
Anadarko Petroleum Corp.; Midstream; segment asset turnover calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Net properties and equipment | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment asset turnover = Revenues ÷ Net properties and equipment
= ÷ =
- Revenues
- The revenues demonstrate a consistent upward trend over the five-year period from 2012 to 2016. Starting at 1,284 million US dollars in 2012, revenues increased steadily each year, reaching 2,038 million US dollars in 2016. This represents a significant growth in revenue, indicating an expanding business or improved market conditions within the segment.
- Net Properties and Equipment
- The net properties and equipment value show a general increasing trend from 2012 through 2014, rising from 4,459 million US dollars to 6,697 million US dollars. However, there is a decline in 2015 to 5,876 million US dollars, followed by a slight increase to 5,913 million US dollars in 2016. This pattern suggests a period of asset expansion initially, succeeded by some divestiture, depreciation, or write-downs, before stabilizing in the final year.
- Segment Asset Turnover Ratio
- The segment asset turnover ratio, which measures the efficiency of asset use to generate revenues, experienced a slight decline from 0.29 in 2012 to 0.27 in 2014, implying reduced efficiency during this period. However, from 2014 onwards, there is a noticeable improvement, with the ratio rising to 0.33 in 2015 and further to 0.34 in 2016. This reflects enhanced utilization of assets in generating revenues, especially in the latter two years.
- Overall Observations
- Overall, the segment shows robust revenue growth throughout the period. Despite fluctuations in net properties and equipment values, asset efficiency improved in the final years, indicating possibly better management of assets or increased operational effectiveness. The initial decrease in asset turnover coupled with rising asset values might indicate a phase of investment with lagging returns, followed by a phase of improved operational performance. This suggests a strategic focus on optimizing asset use after initial expansion.
Segment Asset Turnover: Marketing
Anadarko Petroleum Corp.; Marketing; segment asset turnover calculation
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Net properties and equipment | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Segment asset turnover = Revenues ÷ Net properties and equipment
= ÷ =
The financial data for the Marketing segment reveals several notable trends over the analyzed period. Revenues exhibited moderate fluctuations, initially increasing from 496 million US dollars in 2012 to 531 million in 2013, followed by a slight decrease to 517 million in 2014. Subsequently, revenues rose again to reach a peak of 549 million in 2015 before experiencing a decline to 527 million in 2016. Overall, the revenue trend indicates some variability but generally remains within a relatively narrow range, suggesting stable sales performance with minor volatility.
Regarding net properties and equipment, the values show a marked decline over the available periods. The segment held 94 million US dollars in net properties and equipment at the end of 2012, which dramatically decreased to 9 million in 2013. Data for subsequent years is not provided, which impedes further analysis. This sharp reduction might imply asset disposals, impairments, or other changes in the segment's capital assets during this timeframe.
The segment asset turnover ratio, which measures the efficiency of asset utilization in generating revenues, presents an anomalously high figure in 2013 at 59, compared to 5.28 in 2012. The absence of data for later years prevents a comprehensive trend analysis. The sudden spike in this ratio likely reflects the significant drop in net properties and equipment reported for 2013, which would increase the turnover ratio if revenues remained relatively stable.
Revenues
Anadarko Petroleum Corp., revenues by reportable segment
US$ in millions
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Oil and gas exploration and production | |||||
| Midstream | |||||
| Marketing | |||||
| Other and intersegment eliminations | |||||
| Total |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Oil and gas exploration and production revenues
- Revenues in this segment showed an overall rising trend from 2012 through 2014, increasing from 12,070 million USD to 14,828 million USD. However, starting in 2015, there was a notable decline with revenues dropping sharply to 7,912 million USD in 2015 and further decreasing to 6,842 million USD in 2016, indicating a significant contraction in this core segment.
- Midstream segment revenues
- This segment demonstrated consistent growth throughout the entire period. Revenues rose steadily each year from 1,284 million USD in 2012 to 2,038 million USD in 2016, reflecting a robust expansion of midstream activities or improved market conditions in this area.
- Marketing segment revenues
- Revenues in marketing were relatively stable over the five years. There was a slight increase from 496 million USD in 2012 to 549 million USD in 2015, followed by a minor decrease to 527 million USD in 2016. Overall, this segment showed limited volatility and modest growth.
- Other and intersegment eliminations
- The values in this category are negative, reflecting adjustments or eliminations within the reporting structure. The negative amount increased steadily from -543 million USD in 2012 to -960 million USD in 2016, which may indicate growing intersegment transactions or reallocations affecting consolidated totals.
- Total revenues
- Total revenues increased gradually from 13,307 million USD in 2012 to a peak of 16,375 million USD in 2014, driven primarily by growth in the exploration and production segment. However, total revenues dropped substantially in 2015 and 2016 to 9,486 million USD and 8,447 million USD respectively, consistent with the decline in the oil and gas exploration and production segment. This overall decrease indicates a contraction in the company’s revenue base during the latter years under review.
Adjusted EBITDAX
Anadarko Petroleum Corp., adjusted ebitdax by reportable segment
US$ in millions
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Oil and gas exploration and production | |||||
| Midstream | |||||
| Marketing | |||||
| Other and intersegment eliminations | |||||
| Total |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
The adjusted EBITDAX data for the annual reportable segments reveals several notable trends over the five-year period. The "Oil and gas exploration and production" segment experienced a significant increase from 2012 to 2014, rising from 8,500 million US dollars to a peak of 12,505 million US dollars. This was followed by a sharp decline over the subsequent two years, with values dropping to 4,456 million in 2015 and further down to 3,604 million in 2016. This indicates a period of strong growth initially, potentially followed by challenges or market changes that heavily impacted earnings.
The "Midstream" segment reveals a generally increasing trend from 474 million in 2012 to 1,056 million in 2015, demonstrating consistent growth in this business unit. However, there is a noticeable reduction to 797 million in 2016, though this value remains substantially higher than the starting point in 2012, suggesting some volatility but overall positive development over the duration.
The "Marketing" segment shows negative adjusted EBITDAX values throughout the entire period, indicating losses in this segment. The losses increased from -104 million in 2012 to a peak loss of -219 million in 2014. A slight recovery was noted in 2015 and 2016, where the losses declined to -195 million and -156 million respectively, but the segment remained unprofitable.
"Other and intersegment eliminations" exhibit fluctuations, starting at a positive 96 million in 2012, then moving into negative territory with losses increasing to -381 million in 2015 before partially recovering to -170 million in 2016. This segment reflects adjustments and internal alignments which appear to have intensified in the middle years before somewhat easing.
Overall, the total adjusted EBITDAX mirrors much of the volatility seen in the largest "Oil and gas exploration and production" segment, peaking at 12,721 million in 2014 but declining substantially to 4,936 million and 4,075 million in 2015 and 2016 respectively. This pattern highlights considerable instability in profitability at the consolidated level during the latter part of the period under review. The data suggests that while the Midstream segment provided some growth support, the declines in core exploration and production activities and persistent losses in Marketing, combined with significant intersegment adjustments, drove the overall downturn in adjusted EBITDAX after 2014.
Net properties and equipment
Anadarko Petroleum Corp., net properties and equipment by reportable segment
US$ in millions
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
|---|---|---|---|---|---|
| Oil and gas exploration and production | |||||
| Midstream | |||||
| Marketing | |||||
| Other and intersegment eliminations | |||||
| Total |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Oil and Gas Exploration and Production
- The net properties and equipment values in this segment show a general decline over the five-year period. Starting at $31,939 million in 2012, the value increased modestly to a peak of $33,409 million in 2013, followed by a slight decline in 2014 to $32,717 million. From 2014 onward, the segment experienced a more pronounced decrease, falling to $25,742 million in 2015 and further to $24,251 million in 2016. This trend suggests a reduction in asset base or possible impairments in this core segment during the latter years.
- Midstream
- This segment displayed consistent growth from 2012 through 2014, with net properties and equipment increasing from $4,459 million to $6,697 million. However, the values declined notably in 2015 to $5,876 million but slightly recovered to $5,913 million in 2016. The initial growth indicates investment expansion or asset acquisition, followed by a moderation in asset value or possible divestitures in the subsequent periods.
- Marketing
- The reported values for this segment are minimal and incomplete. The value dropped sharply from $94 million in 2012 to $9 million in 2013, with no data provided thereafter. This could imply a significant divestment, the discontinuation of reporting, or alignment of this segment's assets with other categories in later periods.
- Other and Intersegment Eliminations
- The figures for this category show a moderate upward trend initially, rising from $1,906 million in 2012 to $2,175 million in 2014, before experiencing a small decline to $2,133 million in 2015 and further to $2,004 million in 2016. This pattern indicates relatively stable assets with minor fluctuations, possibly reflecting routine adjustments related to intersegment allocations or non-core asset management.
- Total Net Properties and Equipment
- The aggregate net properties and equipment values increased from $38,398 million in 2012 to a peak of $41,589 million in 2014. However, a significant decrease occurred in 2015, with the total dropping to $33,751 million, and continued to decline to $32,168 million in 2016. This overall trend is largely influenced by the reductions in the oil and gas exploration and production segment, coupled with the decline in midstream assets, indicating a contraction in the asset base or a strategic realignment of the company's property portfolio during this period.