Anadarko Petroleum Corporation (NYSE:APC) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 02, 2018 • 09:00 am ET
Good morning and welcome to the Anadarko Petroleum Corporation First Quarter 2018 Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to Robin Fielder, Vice President-Investor Relations. Please go ahead.
Robin H. Fielder
Good morning, everyone. We're glad you could join us today for Anadarko's first quarter 2018 conference call. I'd like to remind you that today's presentation includes forward-looking statements and certain non-GAAP financial measures. We believe our expectations are based on reasonable assumptions. However, a number of factors could cause results to differ materially from what we discuss.
We encourage you to read our full disclosure on forward-looking statements in our SEC filings and the GAAP reconciliations located on our website and attached to yesterday's earnings release. Additionally, we have provided detail on the first quarter operations report on our website.
At this time, I will turn the call over to Al Walker, and following his remarks, move to Q&A with Al and members of our Executive Management.
Robert A. Walker
Thank you, Robin, and good morning. As you've seen in our earnings release and operations report, Anadarko had a strong first quarter, following through on our improved performance during the second half of last year. We delivered record oil volumes, but more importantly, the company expanded its margins, the highest level we've enjoyed since 2014, when we lived in a $90 oil world.
The substantial margin improvement benefit of our strategic shift to a greater liquids composition was enhanced by a 12% increase on our liquids mix, which year-over-year improved to 73%, resulting in cash flow of more than $1.4 billion for the quarter. These performance highlights are evidence that our strategy to move away from dry gas assets beginning in 2015 and to focus operations and investments on oil-prone properties in the DJ and Delaware Basins and the deepwater Gulf of Mexico was a successful move that produced much stronger results.
Before we open it up for questions, I want to take a moment and highlight our progress in the Delaware Basin. We expect the market could witness the development of haves and have-nots in the broader Permian Basin for takeaway and basis risk management and believe this is a significant looming differentiator.
We have been working hard to be among the haves by proactively aligning our production growth with midstream and downstream solutions with the objective of delivering peer-leading realized well head margins. To add some color to this, we have contracted in the Delaware to deliver all of our expected operated oil lines into Gulf Coast and export markets supported by long-term firm capacity by the end of 2019. And transport through firm transportation agreements 100% of our operated natural gas production in this basin to market centers. So, as a result, we like the position we've created.
This collective approach along with the planned construction of our regional oil treating facilities and tankless production solution will provide Anadarko the ability to operate