BP 2013 Annual Report Download - page 28

BP Annual Report and Form 20-F 201324
Sources and uses of cash ($ billion)
40
20
10
30
50
Uses
2011
Sources Sources SourcesUses
2012
Uses
2013
Uses: Dividends paid Share buybacks
Capital expenditure
Operating cash flow
– Gulf of Mexico oil spill
Sources:
Net cash from
TNK-BP disposal
DisposalsFinancing
Operating cash flow
– rest of group
Operating cash flow
Operating cash flow is net cash provided by operating activities, as
presented in the group cash flow statement on page 125. Operating cash
flow in 2013 was $21.1 billion (2012 $20.5 billion, 2011 $22.2 billion).
Excluding the impact of the Gulf of Mexico oil spill, net operating cash flow
in 2013 was $21.2 billion (2012 $22.9 billion, 2011 $29.0 billion).
Shareholder distributions
Total dividends paid in 2013 were 36.5 cents per share, up 11% compared
with 2012 on a dollar basis and 12% in sterling terms. This equated to a
total cash distribution to shareholders of $5.4 billion during the year.
Group reserves and production
2013 2012 2011
Estimated net proved reserves
(net of royalties)a
Liquidsbmillion barrels
Subsidiaries 4,349 4,672 5,331
Equity-accounted entitiesc5,721 5,378 5,234
10,070 10,050 10,565
Natural gas billion cubic feet
Subsidiaries 34,187 33,264 36,381
Equity-accounted entitiesc11,788 7,041 5,278
45,97540,305 41,659
Total hydrocarbonsdmillion barrels of oil equivalent
Subsidiaries 10,243 10,408 11,604
Equity-accounted entitiesc7,753 6,592 6,144
17,996 17,000 17,748
Production (net of royalties)e
Liquidsfthousand barrels per day
Subsidiaries 879 896 992
Equity-accounted entitiesg1,134 1,160 1,165
2,013 2,056 2,157
Natural gas million cubic feet per day
Subsidiaries 5,845 6,193 6,393
Equity-accounted entitiesg1,216 1,200 1,125
7,060 7,393 7,518
Total hydrocarbonsdthousand barrels of oil equivalent per day
Subsidiaries 1,887 1,963 2,094
Equity-accounted entitiesg1,343 1,367 1,360
3,230 3,331 3,454
a Volumes of equity-accounted entities include volumes of equity-accounted investments of those
entities.
b Liquids comprise crude oil, condensate, NGLs and bitumen.
c Includes BP’s share of Rosneft and TNK-BP reserves. See Rosneft on page 36 and
Supplementary information on oil and natural gas on page 200 for further information.
d Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.
e Because of rounding, some totals may not agree exactly with the sum of their component parts.
f Liquids comprise crude oil, condensate and NGLs.
g Includes BP’s share of Rosneft and TNK-BP production. See Rosneft on page 36 and Oil and gas
disclosures for the group on page 245 for further information.
Total hydrocarbon proved reserves, on an oil equivalent basis including
equity-accounted entities, comprised 17,996mmboe (10,243mmboe
for subsidiaries and 7,753mmboe for equity-accounted entities) at
31 December 2013, an increase of 6% (decrease of 2% for subsidiaries
and increase of 18% for equity-accounted entities) compared with the
31 December 2012 reserves of 17,000mmboe (10,408mmboe for
subsidiaries and 6,592mmboe for equity-accounted entities). Natural gas
represented about 44% (58% for subsidiaries and 26% for equity-
accounted entities) of these reserves. The change includes a net increase
from acquisitions and disposals of 641mmboe (200mmboe net decrease
for subsidiaries and 841mmboe net increase for equity-accounted entities).
Net divestments in our subsidiaries occurred in the UK, the US, China and
Canada. We had sales and purchases, as a consequence of our divestment
of TNK-BP and investment in Rosneft.
Our total hydrocarbon production during 2013 averaged 3,230 thousand
barrels of oil equivalent per day (mboe/d). This comprised 1,887mboe/d for
subsidiaries and 1,343mboe/d for equity-accounted entities, a decrease of
4% (decreases of 2% for liquids and 6% for gas) and a decrease of 2%
(decrease of 2% for liquids and increase of 1% for gas) respectively
compared with 2012.
More information on reserves and production, see Oil and gas disclosures
for the group on page 245.
Critical accounting policies
The accounting policies, judgements, estimates and assumptions which
most affect the financial statements are described in Note 1 to the financial
statements.
Outlook
This discussion contains forward-looking statements, which by their
nature involve risk and uncertainty because they relate to events and
depend on circumstances that will or may occur in the future and are
outside the control of BP. You are urged to read Risk factors on page 51
and Cautionary statement on page 271, which describe the risks
and uncertainties that may cause actual results and developments to
differ materially from those expressed or implied by these forward-
looking statements.
We expect net cash provided by operating activities of between
$30-$31 billion in 2014.h
We expect capital expenditure, excluding acquisitions and asset
exchanges, to be around $24-$25 billion in 2014, and between
$24-$26 billion in the years 2015 to 2018.
We will continue to target our net debt ratio in the 10-20% range while
uncertainties remain. Net debt is a non-GAAP measure.
Depreciation, depletion and amortization in 2014 is expected to be
around $1 billion higher than in 2013.
For 2014, the underlying effective tax rate (ETR) (which excludes
non-operating items and fair value accounting effects) is expected to be
around 35%, which is the same as the underlying ETR in 2013.
h Assumes $100/bbl oil and $5/mmBtu Henry Hub gas. The projection includes BP’s estimate of
the Rosneft dividend and the impact of payments in respect of federal criminal and securities
claims with the US government and SEC where settlements have already been reached, but
does not reflect any cash flows relating to other liabilities, contingent liabilities, settlements or
contingent assets arising from the Gulf of Mexico oil spill, which may or may not arise at that
time.