BP 2014 Annual Report Download - page 27

The decrease in 2013 compared with 2012 reflected an increase in
disposal proceeds of $10.4 billion, partly offset by an increase in our
investments in equity-accounted entities, mainly relating to the completion
of the sale of our interest in TNK-BP and subsequent investment in
Rosneft. There was also an increase in our other capital expenditure
excluding acquisitions of $1.3 billion.
There were no significant acquisitions in 2014, 2013 and 2012.
The group has had significant levels of capital investment for many years.
Cash flow in respect of capital investment, excluding acquisitions, was
$23.1 billion in 2014 (2013 $30 billion and 2012 $24.8 billion). Sources of
funding are fungible, but the majority of the group’s funding requirements
for new investment come from cash generated by existing operations.
We expect capital expenditure, excluding acquisitions and asset
exchanges, to be around $20 billion in 2015.
Total cash disposal proceeds received during 2014 were $3.5 billion (2013
$22 billion, 2012 $11.6 billion). In 2013 this included $16.7 billion for the
disposal of BP’s interest in TNK-BP and in 2012 it included $5.6 billion for
the disposal of BP’s interests in the Marlin hub, Horn Mountain, Holstein,
Ram Powell and Diana Hoover fields in the Gulf of Mexico. See Financial
statements – Note 3 for more information on disposals.
Net cash used in financing activities
Net cash used in financing activities for the year ended 31 December 2014
decreased by $5.1 billion compared with 2013. The decrease primarily
reflected higher net proceeds of $3.3 billion from long-term financing
and a decrease in the net repayment of short-term debt of $1.3 billion.
The $8-billion share repurchase programme was completed in July 2014.
The increase in 2013 compared with 2012 primarily reflected the buyback
of shares of $5.5 billion, as part of our $8-billion share repurchase
programme, lower net proceeds of $1.1 billion from long-term financing
and an increase in the net repayment of short-term debt of $1.4 billion.
Total dividends paid in 2014 were 39 cents per share, up 6.8% compared
with 2013 on a dollar basis and 1.9% in sterling terms. This equated to a
total cash distribution to shareholders of $5.9 billion during the year (2013
$5.4 billion, 2012 $5.3 billion).
Net debt
Net debt at the end of 2014 decreased by $2.5 billion from the 2013
year-end position. The ratio of net debt to net debt plus equity at the end of
2014 increased by 0.5%.
The total cash and cash equivalents at the end of 2014 were $7.2 billion
higher than 2013.
We will continue to target our net debt ratio in the 10-20% range while
uncertainties remain. Net debt and the ratio of net debt to net debt plus
equity are non-GAAP measures. See Financial statements – Note 25 for
further information on net debt.
For information on financing the group’s activities, see Financial
statements – Note 27 and Liquidity and capital resources on page 211.
Group reserves and production
Total hydrocarbon proved reserves at 31 December 2014, on an oil
equivalent basis including equity-accounted entities, decreased by 3%
(decrease of 5% for subsidiaries and increase of 1% for equity-accounted
entities) compared with 31 December 2013. Natural gas represented about
44% of these reserves (58% for subsidiaries and 27% for equity-
accounted entities). The change includes a net decrease from acquisitions
and disposals of 39mmboe (all within our subsidiaries). Acquisition activity
in our subsidiaries occurred in Azerbaijan, the US and the UK, and
divestment activity in our subsidiaries occurred in the US and Brazil.
Our total hydrocarbon production for the group was 2% lower compared
with 2013. The decrease comprised a 1% increase (7% increase for liquids
and 4% decrease for gas) for subsidiaries and a 7% decrease (13%
decrease for liquids and 25% increase for gas) for equity-accounted
entities.
For more information on reserves and production, see Oil and gas
disclosures for the group on page 219.
2014 2013 2012
Estimated net proved reservesa
(net of royalties)
Liquids million barrels
Crude oilb
Subsidiaries 3,582 3,798 4,082
Equity-accounted entitiesc5,663 5,589 5,275
9,244 9,387 9,357
Natural gas liquids
Subsidiaries 510 551 591
Equity-accounted entitiesc62 131 103
572 682 693
Total liquids
Subsidiaries 4,092 4,349 4,672
Equity-accounted entitiesc5,725 5,721 5,378
9,817 10,070 10,050
Natural gas billion cubic feet
Subsidiaries 32,496 34,187 33,264
Equity-accounted entitiesc12,200 11,788 7,041
44,695 45,975 40,305
Total hydrocarbons million barrels of oil equivalent
Subsidiaries 9,694 10,243 10,408
Equity-accounted entitiesc7,828 7,753 6,592
17,523 17,996 17,000
Productiona (net of royalties)
Liquids thousand barrels per day
Crude oild
Subsidiaries 844 789 795
Equity-accounted entitiese979 1,120 1,137
1,823 1,909 1,932
Natural gas liquids
Subsidiaries 91 86 96
Equity-accounted entitiese12 19 27
103 105 123
Total liquidsf
Subsidiaries 936 874 891
Equity-accounted entitiese991 1,139 1,164
1,927 2,013 2,056
Natural gas million cubic feet per day
Subsidiaries 5,585 5,845 6,193
Equity-accounted entitiese 1,515 1,216 1,200
7,100 7,060 7,393
Total hydrocarbonsfthousand barrels of oil equivalent per day
Subsidiaries 1,898 1,882 1,959
Equity-accounted entitiese 1,253 1,348 1,372
3,151 3,230 3,331
a
Because of rounding, some totals may not agree exactly with the sum of their component parts.
b
Includes condensate and bitumen.
c
Includes BP’s share of Rosneft (2014 and 2013) and TNK-BP reserves (2012). See Rosneft on
page 33 and Supplementary information on oil and natural gas on page 167 for further
information.
d Includes condensate.
e
Includes BP’s share of Rosneft (2014 and 2013) and TNK-BP production (2013 and 2012).
See Rosneft on page 33 and Oil and gas disclosures for the group on page 219 for
further information.
f A minor amendment has been made to the split between subsidiaries and equity-accounted
entities for the comparative periods.
★ Defined on page 252. BP Annual Report and Form 20-F 2014 23
Strategic report