Anadarko Petroleum Corp. (NYSE:APC)

The financial data reveals several notable trends concerning the property, plant, and equipment figures over the five-year period analyzed.

Oil and Gas Exploration and Production

This segment experienced consistent growth from 2012 to 2014, increasing from approximately 55.1 billion USD to 63.7 billion USD. However, starting in 2015, a decline was observed, with values dropping to around 59.4 billion USD in 2015 and further to approximately 57.6 billion USD in 2016. This suggests a reduction in investment or asset base in this segment during the latter years.

Midstream

The midstream segment showed a steady upward trend throughout the entire period. Starting at 6.0 billion USD in 2012, it grew each subsequent year to reach about 8.6 billion USD by 2016. The consistent increase indicates continued investment or expansion in midstream assets.

Marketing

Marketing-related assets were minimal and displayed an irregular pattern, with a significant decrease from 94 million USD in 2012 to 9 million USD in 2013, followed by missing data in the following years. This lack of consistent data and the initial drop may imply divestiture or a de-emphasis on this segment.

Other Assets

Other categories of assets showed moderate growth from 2.4 billion USD in 2012 to 2.8 billion USD in 2015, with a slight decline to approximately 2.8 billion USD in 2016. The change over time was relatively stable with minor fluctuations.

Gross Properties and Equipment

Gross properties and equipment values rose steadily from about 63.6 billion USD in 2012 to a peak of 75.1 billion USD in 2014. A decline followed, with figures dropping to 70.7 billion USD in 2015 and further to 69.0 billion USD in 2016, reflecting a contraction in total asset base after 2014.

Accumulated Depreciation, Depletion, and Amortization (DD&A)

Accumulated DD&A increased in magnitude (more negative) every year until 2015, moving from -25.2 billion USD in 2012 to -36.9 billion USD in 2015. In 2016, a slight decrease in absolute terms occurred to -36.8 billion USD, possibly indicating changes in depreciation rates, asset disposals, or accounting revisions.

Net Properties and Equipment

Net properties and equipment, which represent gross properties minus accumulated DD&A, increased from about 38.4 billion USD in 2012 to 41.6 billion USD in 2014, reflecting asset growth exceeding depreciation in those years. Following 2014, net values declined sharply to about 33.8 billion USD in 2015 and further to 32.2 billion USD in 2016. This suggests significant asset retirements, impairments, or reduced capital expenditures during the latter part of the timeframe.

Overall, the data indicates an initial phase of asset accumulation with growth in exploration and production and a robust increase in midstream assets. Beginning in 2015, a shift occurs characterized by asset base reductions, especially in the net property, plant, and equipment balance, suggesting potential strategic repositioning, decreased capital investment, or response to market conditions. The steady increase in accumulated DD&A underscores ongoing asset consumption, while the drop in net assets aligns with the observed declines in gross properties and exploration & production assets.

The average age ratio of property, plant, and equipment exhibited a clear upward trend over the five-year period ending in 2016. Starting at 39.62% in 2012, this ratio increased steadily each year, reaching 53.39% by the end of 2016. The most significant growth occurred between 2014 and 2015, where the ratio rose from 44.63% to 52.25%, indicating an acceleration in the aging of assets during this interval.

This increasing average age ratio suggests a progressively aging fixed asset base, which may imply that newer investments or replacements were not keeping pace with asset depreciation and aging. Such a trend could have implications for maintenance costs, operational efficiency, and potential capital expenditure requirements moving forward.

Summary of Average Age Ratio Trend

2012: 39.62%

2013: 42.55%

2014: 44.63%

2015: 52.25%

2016: 53.39%

The financial data for property, plant, and equipment over the five-year period reveals several notable trends. The accumulated depreciation, depletion, and amortization (DD&A) values show a consistent increase from 25,200 million US dollars at the end of 2012 to 36,845 million US dollars by the end of 2016. This rising trend in accumulated DD&A indicates ongoing asset usage and corresponding expense recognition, reflecting continued asset aging and utilization over time.

Gross properties and equipment values initially increased from 63,598 million US dollars in 2012 to a peak of 75,107 million in 2014. However, from 2014 onwards, there is a decline, dropping to 70,683 million in 2015 and further to 69,013 million by the end of 2016. This pattern suggests that the company either slowed down or reversed investments in property and equipment assets after 2014, possibly due to strategic shifts or capital expenditure adjustments.

The average age ratio, representing the proportion of accumulated DD&A to gross properties and equipment, also displays an upward trend, moving from 39.62% in 2012 to 53.39% in 2016. This increase reflects an overall aging asset base, implying that a greater portion of the company's property and equipment has been depreciated over time.

Summary of key insights:

Accumulated DD&A steadily rose over the period, indicative of ongoing asset consumption.

Gross property and equipment values grew until 2014, then declined through 2016, pointing to possible reduced capital expenditures or asset disposals.

The average age ratio’s upward movement confirms the aging nature of the asset base, suggesting less recent investment in new assets relative to the existing asset stock.