"Importantly, our investments in recent years have afforded us the ability to scale our growth to optimize value. We're committed to our goal of growing production at a 5 to 7 percent compound annual rate from 2010 through 2017, and we'll do so with our long-standing commitment to spending largely within our cash flows. While volume growth is critical to our success, value growth is the ultimate goal. A key focus in 2013 will be improving our earnings and cash margins as we grow," Cazalot added.
2012 Key Highlights
· Demonstrated ability to execute strategy in first full year as an independent E&P company
o Achieved 8 percent year-over-year growth in Upstream net production available for sale, excluding Libya· Doubled Lower 48 onshore net production available for sale over the past five quarters o Increased average net production more than four-fold in the Eagle Ford shale from approximately 15,000 barrels of oil equivalent per day (boed) in December 2011 to more than 65,000 boed in December 2012. For the same period, average net production in the Bakken shale increased from 24,000 to 35,000 boed, while average net production in the Oklahoma Resource Basins increased from 2,500 to 9,600 boed o Expanded midstream infrastructure in the Eagle Ford to support production growth o In total, spud 392 gross operated wells in U.S. resource plays in 2012, compared to 123 in 2011 · Completed targeted acquisitions in the Eagle Ford of approximately $1 billion, increased the Company's acreage position and working interest in the core of the play and added production and drilling locations · Replaced 226 percent of 2012 Upstream production, including acquisitions and Libya o Increased total net proved reserves 12 percent to 2.0 billion boe o Replaced 268 percent of net proved liquid hydrocarbon and synthetic crude oil (SCO) reserves, consistent with liquids-focused strategy