- Production Volumes Are the Highest in Company History
- Reserve Additions Outpace Production for 18th Consecutive Year
- Proved Reserves Up 6%
HOUSTON, Jan. 26 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today released its 1999 operating results, which were highlighted
by record production volumes. Total production surpassed the company's target
for the year and reached 49.5 million energy equivalent barrels (MMEEBs), a
5% jump compared to 1998 volumes.
During 1999, Anadarko added reserves of crude oil and natural gas equal to
213% of annual production (stated on an energy equivalent barrel -- or
EEB -- basis). This marks the 18th consecutive year that the company has more
than replaced annual production volumes with reserve additions -- a record
that is unmatched in the industry.
"Anadarko, like most exploration and production companies, benefited from
higher commodity prices in 1999," said Anadarko Chairman and Chief Executive
Officer Robert J. Allison, Jr. "What sets us apart from the competition,
however, is our continued success in finding high-quality, long-lived
hydrocarbon reserves at costs that are among the lowest in the industry."
Finding Cost
In 1999, Anadarko's worldwide finding cost for proved reserves was $4.87
per energy equivalent barrel (EEB), versus $3.13 per EEB in 1998. For the
five-year period from 1995-1999, the company's worldwide finding cost was
$3.53 per EEB. The most recent five-year industry average (1994-1998) for
worldwide finding cost was $4.66 per EEB. (Source: Arthur Andersen).
Industry data for 1999 is not yet available.
In the U.S., Anadarko's 1999 finding cost was $9.06 per EEB. For the
years 1995-1999, the company's U.S. finding cost was $4.29 per EEB. By
comparison, the industry's U.S. finding cost for 1998 was $9.32 per EEB and
for the five-year period from 1994-1998 (the most recent industry data
available) was $5.73 per EEB. (Source: Arthur Andersen). Anadarko believes
that finding costs in any single year can be significantly affected by
spending patterns in exploring for, developing and producing reserves; a
multi-year average is a more accurate representation of a company's long-term
success.
Proved Reserves
In 1999, the company added 105.4 MMEEBs (after divestitures). Most of the
additions in 1999 were the result of continued successful operations in
Algeria, Alaska and the Bossier Play in East Texas.
Anadarko's proved reserves at year-end 1999 were 991.0 MMEEBs, a 6%
increase over year-end 1998. The company's reserves have increased at an
average compound rate of 16% over the past five years, following significant
discoveries in the Gulf of Mexico, Algeria, Alaska and East Texas.
Proved natural gas reserves at year-end 1999 totaled 2.51 Tcf, down
slightly from 2.65 Tcf at year-end 1998. Proved reserves of crude oil,
condensate and natural gas liquids (NGLs) grew 16% from 494.0 MMBbls at
December 31, 1998 to 573.2 MMBbls at year-end 1999. Domestically, Anadarko
had 702.3 MMEEBs of proved reserves at year-end 1999, up slightly over the
690.1 MMEEBs at the end of 1998. In Algeria, Anadarko had proved reserves of
288.8 MMEEBs at year-end 1999, up from 245 MMEEBs at year-end 1998. U.S.
reserves of oil and gas now account for 71% of the company's total reserves,
compared to 74% at year-end 1998. Worldwide, Anadarko's total reserve mix is
comprised of 42% natural gas and 58% crude oil, condensate and NGLs.
In 1999, Anadarko's capital expenditures were $680 million. The major
capital projects for 1999 included ongoing development of discoveries in
Algeria and Alaska, as well as construction of production platforms to develop
discoveries in the Gulf of Mexico. Significant capital resources were also
directed to developing the company's natural gas reserves in the East Texas
Bossier Play.
"Anadarko generated a great deal of momentum in 1999," said Allison, "and
we're carrying it right into 2000. We had 27 rigs working domestically as of
January 1, and we'll be adding to them in the months ahead. We're looking
forward to a very productive year."
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.
SOURCE Anadarko Petroleum Corporation
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CONTACT:
analysts and investors, A. Paul Taylor,
281-874-3471, or media, Tony Canino, 281-873-3855, both of
Anadarko Petroleum Corporation
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