HOUSTON, Jan. 26 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today announced significantly improved financial results for the
1999 fourth quarter and full year. The improvement is due to the effect of
stronger commodity prices for crude oil and natural gas, and record levels of
production, which surpassed the company's previously announced targets for the
year.
"Stronger commodity markets this year, led by a nearly 50% jump in annual
average oil prices, contributed significantly to our positive financial
results in 1999," said Robert J. Allison, Jr., Anadarko Chairman and Chief
Executive Officer. "The improvement in prices, coupled with increased volumes
from Algeria, helped us increase cash flows dramatically." Allison added that
1999's performance is indicative of what lies ahead in 2000 and beyond.
"We've spent the last several years building a foundation that should create
double-digit production growth and long-term value for our shareholders.
They're now beginning to see some real, immediate returns from these
projects."
FOURTH QUARTER For the fourth quarter of 1999, Anadarko had net income
available to common stockholders of $28.0 million, or 22 cents per share
(diluted) on revenues of $223.3 million. By comparison, Anadarko reported a
net loss of $56.7 million, or 47 cents per share (diluted), on $135.5 million
of revenues for the fourth quarter of 1998. During the fourth quarter of
1999, a non-cash charge of $4 million ($2.6 million after tax) was recorded to
impair activity in several international projects. Excluding the impairment,
Anadarko's earnings for the quarter were $30.6 million, or 24 cents per share
(diluted). During 1998's fourth quarter, the company recorded a non-cash
charge of $70 million before taxes ($45 million after taxes) to impair certain
foreign exploration activity. Excluding the foreign impairment, Anadarko's
net loss for the fourth quarter of 1998 was $12.1 million, or 10 cents per
share (diluted).
ANNUAL For the year ending December 31, 1999, Anadarko reported net
income available to common stockholders of $31.7 million, or 25 cents per
share (diluted) on revenues of $701.1 million. This compares to a net loss of
$49.3 million, or 41 cents per share (diluted), on revenues of $560.2 million
for 1998.
The 1999 results included non-cash charges of $24 million ($15.4 million
after tax) related to impairments for exploration efforts in Eritrea and other
international locations. Excluding the impairments, Anadarko had net income
of $47.0 million, or 37 cents per share (diluted), in 1999. For 1998,
Anadarko's net loss, excluding the foreign impairment, was $4.7 million, or
four cents per share (diluted).
The higher revenues and earnings in 1999, compared to 1998, were the
result of significant improvement in oil and gas prices and an increase in
Algeria oil production. Net income for 1999 also reflects lower operating
expenses, offset partly by higher DD&A expense, administrative and general
expense, interest expense and preferred stock dividends, compared to 1998.
In its 1999 operating results, released January 26, 2000, Anadarko
reported production of 49.5 million energy equivalent barrels (MMEEBs) -- the
highest in company history and a 5% increase over 1998 volumes. A modest
decline in U.S. production volumes was more than offset by higher oil
production volumes from Algeria, which totaled 6.2 MMBbls (net) in 1999,
compared to 1.4 MMBbls (net) in 1998.
In addition, proved reserves on December 31, 1999, totaled 991.0 MMEEBs,
compared to 935.1 MMEEBs at year-end 1998. For the 18th consecutive year, the
company more than replaced annual production with proved reserves.
The table below shows production volumes and prices for commodity sales
during the fourth quarter and full year 1999.
Volumes and Prices
Fourth Quarter Annual
1999 1998 % change 1999 1998 % change
Natural Gas
Volumes, billion
cubic feet 41.9 44.8 (6%) 169.8 176.7 (4%)
Average daily volumes,
million cubic feet 456 487 (6%) 465 484 (4%)
Price per thousand
cubic Feet $2.40 $1.88 28% $2.08 $1.92 8%
Crude Oil &
Condensate
Volumes, thousand
barrels 4,016 3,256 23% 14,583 11,126 31%
Average daily volumes,
Thousand barrels
per day 44 35 23% 40 30 31%
Price per barrel $23.02 $10.48 120% $16.83 $11.51 46%
Natural Gas Liquids
Volumes, thousand
barrels 1,619 1,578 3% 6,568 6,640 (1%)
Average daily volumes,
Thousand barrels
per day 18 17 3% 18 18 (1%)
Price per barrel $18.17 $9.14 99% $13.40 $10.29 30%
Comparative financial highlights follow (amounts in millions, except for
per share data)
Quarter Ended December 31
1999 1998
Net income (loss) available
to common stockholders $28.0 $(56.7)
Earnings (loss) per share
- diluted $0.22 $(0.47)
Revenues $223.3 $135.5
Average common shares
outstanding 127.6 120.4
Year Ended December 31
1999 1998
Net income (loss) available
to common stockholders $31.7 $(49.3)
Earnings (loss) per share
- diluted $0.25 $(0.41)
Revenues $701.1 $560.2
Average common shares
outstanding 125.2 120.1
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. Anadarko believes that its expectations are based
on reasonable assumptions. No assurances, however, can be given that its
goals will be achieved. See Additional Factors Affecting Business in the
Management's Discussion and Analysis (MD&A) included in the company's 1998
Annual Report on Form 10-K.
For more information about Anadarko's worldwide operations, please visit
the company's web site at http://www.anadarko.com.
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Summary Financial Information December 31 December 31
$ and shares in millions 1999 1998 1999 1998
Revenues
Gas sales $97.7 $85.7 $357.5 $353.1
Oil and condensate sales 92.9 35.1 249.7 133.1
Natural gas liquids and other 32.7 14.7 93.9 74.0
Total 223.3 135.5 701.1 560.2
Costs and Expenses
Operating expenses 38.0 39.8 141.7 160.5
Administrative and general 30.7 30.0 102.9 94.9
Depreciation, depletion
and amortization 55.9 53.2 218.1 204.5
Other taxes 8.0 9.2 35.5 37.7
Impairments related to
international properties 4.0 70.0 24.0 70.0
Total 136.6 202.2 522.2 567.6
Operating Income (Loss) 86.7 (66.7) 178.9 (7.4)
Interest Expense 19.1 16.6 74.1 57.7
Income (Loss) before
Income Taxes 67.6 (83.3) 104.8 (65.1)
Income Taxes 36.9 (29.3) 62.2 (22.9)
Net Income (Loss) $30.7 $(54.0) $42.6 $(42.2)
Preferred Stock Dividends 2.7 2.7 10.9 7.1
Net Income (Loss) Available
to Common Stockholders $28.0 $(56.7) $31.7 $(49.3)
Per Common Share
Net income (loss) - basic $0.22 $(0.47) $0.25 $(0.41)
Net income (loss) - diluted $0.22 $(0.47) $0.25 $(0.41)
Dividends $0.05 $0.05 $0.20 $0.1875
Average Number of Shares
Outstanding 127.6 120.4 125.2 120.1
Cash Flow from Operations before
Changes in Assets and Liabilities
Net income (Loss) $30.7 $(54.0) $42.6 $(42.2)
Depreciation, depletion and
amortization 55.9 53.2 218.1 204.5
Amortization of restricted
stock 0.5 0.3 1.7 1.1
Deferred U.S. income taxes 17.8 (27.4) 26.5 (22.6)
Impairments related to
international properties 4.0 70.0 24.0 70.0
Total $108.9 $42.1 $312.9 $210.8
Capital Expenditures
Capital spending $227.2 $214.4 $577.1 $801.5
Capitalized interest 5.4 6.3 22.0 24.7
Capitalized overhead 15.7 23.9 80.8 90.8
Total $248.3 $244.6 $679.9 $917.0
Capitalization
Long-term debt $1,443.3 $1,425.4
Stockholders' equity 1,534.6 1,259.5
Total $2,977.9 $2,684.9
Capitalization Ratios
Long-term debt 48% 53%
Stockholders' equity 52% 47%
Total Assets $4,098.4 $3,633.0
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Volumes and Prices December 31 December 31
1999 1998 1999 1998
Natural Gas
Volumes, billion cubic feet 41.9 44.8 169.8 176.7
Average daily volumes, million
cubic feet per day 456 487 465 484
Price per thousand cubic feet $ 2.40 $ 1.88 $ 2.08 $ 1.92
Crude Oil and Condensate
United States
Volumes, thousand barrels 1,906 2,468 8,365 9,752
Average daily volumes,
thousand barrels per day 21 27 23 27
Price per barrel $ 21.31 $ 10.20 $ 15.79 $ 11.44
Algeria
Volumes, thousand barrels 2,110 788 6,218 1,374
Average daily volumes,
thousand barrels per day 23 9 17 4
Price per barrel $ 24.57 $ 11.37 $ 18.23 $ 11.99
Total
Volumes, thousand barrels 4,016 3,256 14,583 11,126
Average daily volumes,
thousand barrels per day 44 35 40 30
Price per barrel $ 23.02 $ 10.48 $ 16.83 $ 11.51
Natural Gas Liquids
Volumes, thousand barrels 1,619 1,578 6,568 6,640
Average daily volumes,
thousand barrels per day 18 17 18 18
Price per barrel $ 18.17 $ 9.14 $ 13.40 $ 10.29
Total Energy Equivalent Barrels
Volumes, million EEBs 12.6 12.3 49.5 47.2
SOURCE Anadarko Petroleum Corporation
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CONTACT:
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Anadarko Petroleum Corporation
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