- Annual Production and Reserves Double 1999 Levels;
- Goal for 2001 is Double-Digit Growth in Production
HOUSTON, Feb. 1 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC)
announced record financial results for the fourth quarter and full year 2000.
The results for the year reflect the outstanding success of the merger with
Union Pacific Resources (UPR), annual production levels that more than doubled
and higher commodity prices for crude oil and natural gas.
For the fourth quarter 2000, Anadarko had net income available to common
stockholders of $454 million, or $1.75 per share (diluted). By comparison,
for the fourth quarter 1999, the company reported net income available to
common stockholders of $28 million, or 22 cents per share (diluted).
For the year ending Dec. 31, 2000, Anadarko reported net income available
to common stockholders of $796 million, or $4.16 per share (diluted). Net
income available to common stockholders before the cumulative effect of a
change in an accounting principle was $813 million, or $4.25 per share
(diluted). Net income available to common stockholders for 1999 was
$32 million, or 25 cents per share (diluted).
"Our financial results for the past year speak to the fact that we have
delivered on our promises of production growth and increased earnings," said
Robert J. Allison, Jr., Anadarko Chairman and Chief Executive Officer.
"Today, Anadarko is the world's largest independent oil and gas company. We
have the most talented team of professionals in the industry, we have the
resources and we have the opportunities to continue to build shareholder
value.
"We expect these outstanding earnings to continue in 2001. In fact, for
the first quarter we estimate a 20 percent increase in earnings over the
fourth quarter of 2000," Allison added. This forecast assumes first quarter
2001 daily production volumes will be about three percent higher than the
fourth quarter volumes and is based on today's outlook for NYMEX benchmark oil
and gas prices, minus the usual company price differentials.
Financial results for the fourth quarter include a charge of $50 million
($32 million after taxes or 12 cents per share - diluted) for impairments
related to various international properties. The quarter also includes a
charge of $3 million ($2 million after taxes, or 1 cent per share) for
expenses related to the UPR merger. Total expenses related to the UPR merger
reported in 2000 now stand at $67 million ($43 million after taxes, or
22 cents per share - diluted).
Production
Total production for 2000 was 112 million barrels of oil equivalent (BOE),
a 124 percent increase over the 50 million BOE produced in 1999. The increase
in production is attributed primarily to the acquisition of UPR and increased
production from the company's operations in Texas, Louisiana, Kansas and
Algeria.
In the U.S., one of Anadarko's most active areas is the Bossier sand
natural gas play in East Texas. Last year, Anadarko drilled 142 development
wells in the Bossier and produced 60 billion cubic feet (Bcf) of natural gas
(net) -- up from 22 Bcf in 1999. Anadarko expects to increase Bossier
production to 90 Bcf for 2001.
In the fourth quarter, Anadarko also began production from two fields in
the Gulf of Mexico, Tanzanite and Hickory. Currently Tanzanite is producing
more than 10,000 barrels of oil and 23 million cubic feet (MMcf) of gas per
day. Hickory is producing 62 MMcf of gas and 4,100 barrels of condensate per
day.
In addition, production began from the Alpine field in Alaska, in which
the company holds a 22 percent working interest. Alpine is currently
producing over 80,000 barrels of oil per day (gross).
"Production from the Gulf of Mexico and Alaska fields began later than we
had expected and this caused us to record slightly lower production volumes
than anticipated for the fourth quarter. However, all three of these fields
are producing now and are performing well.
"Going forward, Anadarko has an aggressive exploration program underway --
including seismic acquisition and drilling -- in Alaska, Texas and the Gulf of
Mexico. These projects are key to achieving our significant production growth
targets for 2001," Allison added.
Reserves
The company recorded a 108 percent increase in proved reserves, reporting
2.06 billion BOE at year-end 2000, compared to 991 million BOE at year-end
1999.
"This marks the 19th consecutive year that Anadarko has more than replaced
its annual production with proved reserves -- an accomplishment we have
achieved by maintaining a strong focus on our core business -- finding and
producing oil and gas," Allison continued.
Proved worldwide natural gas reserves at year-end 2000 totaled
6.09 trillion cubic feet (Tcf), up from 2.51 Tcf in 1999. Proved reserves of
crude oil, condensate and natural gas liquids (NGLs) totaled 1.05 billion
barrels, an 82 percent increase over the previous year. Total proved reserves
in the U.S. stand at 1.33 billion BOE at year-end 2000, up from 702.3 million
BOE in 1999. In Algeria, the company had 364.1 million barrels of oil
reserves at year-end 2000, compared to 288.8 million barrels at year-end 1999.
Anadarko's worldwide portfolio of proved reserves consists of 49 percent
natural gas and 51 percent crude oil, condensate and NGLs.
Reserve Replacement
The company achieved a worldwide reserve replacement rate of 1,059 percent
in 2000, including the merger transaction, and 242 percent without the effect
of the merger transaction. Anadarko's five-year average reserve replacement
rate for 1996-2000 is 629 percent, and 315 percent excluding the merger
transaction.
In the U.S., Anadarko achieved an 855 percent reserve replacement rate
with the UPR merger transaction and 224 percent without the effect of the
merger transaction. The company's five-year U.S. replacement rate for
1996-2000 is 452 percent with the merger transaction and 246 percent excluding
the merger transaction. Anadarko's superior replacement rates exceed the
industry's five-year U.S. averages of 102 percent, as reported by the U.S.
Department of Energy (DOE) for the years 1995-1999. (DOE data for the latest
five-year period is not yet available.)
Finding Costs
In 2000, Anadarko's worldwide finding costs for proved reserves were
$7.21 per BOE, which includes the cost of acquiring the UPR reserves, and
reflects higher oil field service costs associated with drilling and
development of reserves. Stated without the effect of the UPR merger
transaction, Anadarko's finding costs for the year 2000 were $5.80 per BOE.
The company's average finding costs for the years 1996-2000 stand at $5.90 per
BOE with the merger transaction, or $4.26 per BOE excluding the merger
transaction. By comparison, the most recent industry data available shows the
worldwide average cost of finding for 1995-1999 is $4.57 per BOE. [SOURCE:
Arthur Andersen's "Global E&P Trends 2000"]
Within the U.S., Anadarko's finding costs for 2000 were $8.51 per BOE, or
$6.65 per BOE without the merger transaction. The company's U.S. five-year
average cost of finding for 1996-2000 is $6.88 per BOE, or $4.98 per BOE
without the merger. By comparison, industry data reflects a domestic industry
average of $5.79 per BOE for 1995-1999. [SOURCE: Arthur Andersen's "Global E&P
Trends 2000"]
Houston-based Anadarko Petroleum Corporation is the world's largest
independent E&P company, with domestic operations in Texas, Louisiana, the
Mid-Continent and Rocky Mountain regions, Alaska, and in the shallow and deep
waters of the Gulf of Mexico. Anadarko is currently the most active driller
in North America. Internationally, it is active in Canada, Algeria, Tunisia,
West Africa, Guatemala, Venezuela, Brazil, Georgia, the North Atlantic and
Australia.
Five tables of summary financial data follow.
Earnings Conference Call Set for Feb. 2
NOTE: Anadarko will host a Q4 2000 earnings conference call on Feb. 2, at
9:30 a.m. Central Standard Time / 10:30 a.m. Eastern Standard Time, to discuss
the quarter and year-end financial and operating results. The dial-in number
is (913) 981-5507 and the confirmation number is 811770. For complete
instructions on how to participate in the telephone conference call, please
refer to the Investor Relations page on our website, http://www.anadarko.com.
Detailed Operating Report
For more details on Anadarko's operations, please refer to the
comprehensive report on individual wells drilled throughout the company during
the fourth quarter. The report is available on the company's website at
http://www.anadarko.com in the News Bureau.
This news release contains forward-looking statements and projections made
in reliance of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Anadarko believes that these forward-looking statements
are based on current, reasonable and complete information and assumptions.
However, a number of factors could cause actual results to differ materially
from the projections, anticipated results or other expectations expressed in
this release. While Anadarko makes these forward-looking statements in good
faith, neither Anadarko nor its management can guarantee that the anticipated
future results will be achieved. Reference should be made to Anadarko's
Securities and Exchange Commission filings for additional important factors
that may affect actual results, including the section entitled "Additional
Factors Affecting Business" in the Management's Discussion and Analysis (MD&A)
included in the company's 1999 Annual Report on Form 10-K.
http://www.anadarko.com
ANADARKO PETROLEUM CORPORATION
The table below shows volumes and prices for commodity sales for the
fourth quarter and full year 2000.
Volumes and Prices
Fourth Quarter Annual
2000 1999 %change 2000 1999 %change
Natural Gas
Volumes, billion
cubic feet 154 42 267% 385 170 126%
Average daily volumes,
million cubic feet
per day 1,676 456 267% 1,052 465 126%
Price per thousand
cubic feet $5.18 $2.40 116% $4.13 $2.08 99%
Crude Oil &
Condensate
Volumes, million
barrels 15 4 275% 36 15 140%
Average daily volumes,
thousand barrels
per day 161 44 275% 98 40 140%
Price per barrel $25.45 $23.02 11% $26.49 $16.83 57%
Natural Gas Liquids
Volumes, million
barrels 4 2 100% 12 7 71%
Average daily volumes,
thousand barrels
per day 46 18 100% 33 18 71%
Price per barrel $23.36 $18.17 29% $21.70 $13.40 62%
TOTAL, million BOE 45 13 246% 112 50 124%
ANADARKO PETROLEUM CORPORATION
Comparative financial highlights*
(Amounts in millions, except per share data)
Q4 Ended December 31
2000 1999
Net income available to common stockholders $454 $28
Earnings per share - diluted $1.75 $0.22
Revenues $2,406 $546
Average common shares outstanding 249 128
Full Year Ended December 31
2000 1999
Net income available to common stockholders
before cumulative effect of change in
accounting principle $813 $32
Earnings per share - diluted - before cumulative
effect of change in accounting principle $4.25 $0.25
Revenues $5,686 $1,771
Average common shares outstanding 184 125
* Revenues and costs and expenses for 2000 and 1999 reflect a
reclassification of certain amounts related to the SEC's staff
accounting bulletin on revenue recognition. Net income for 2000 also
reflects a change in accounting principle related to these revenue
recognition issues.
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Summary Financial Information * December 31 December 31
$ and shares in millions 2000 1999 2000 1999
Revenues
Gas sales $799 $101 $1,591 $353
Oil and condensate sales 378 93 948 247
Natural gas liquids sales 99 29 264 88
Marketing sales 1,100 323 2,823 1,081
Minerals and other 30 --- 60 2
Total 2,406 546 5,686 1,771
Costs and Expenses
Marketing purchases and
transportation 1,113 312 2,824 1,036
Operating expenses 168 52 438 179
Administrative and general 77 31 180 103
Depreciation, depletion and
amortization 257 56 593 218
Other taxes 51 8 128 36
Provision for doubtful accounts --- --- 23 ---
Impairments related to international
properties 50 4 50 24
Amortization of goodwill 20 --- 31 ---
Total 1,736 463 4,267 1,596
Operating Income 670 83 1,419 175
Other (Income) Expense
Merger expenses 3 --- 67 ---
Interest expense 24 19 93 74
Other (income) expense (138) (4) (167) (4)
Total (111) 15 (7) 70
Income before Income Taxes 781 68 1,426 105
Income Taxes 324 37 602 62
Net Income Before Cumulative Effect
of Change in Accounting Principle $457 $31 $824 $43
Preferred Stock Dividends 3 3 11 11
Net Income Available to Common
Stockholders Before Cumulative
Effect of Change in
Accounting Principle $454 $28 $813 $32
Cumulative Effect of Change in
Accounting Principle --- --- 17 ---
Net Income Available to Common
Stockholders $454 $28 $796 $32
Per Common Share
Net income - Basic Before Change in
Accounting Principle $1.82 $0.22 $4.42 $0.25
Net income - Diluted Before Change in
Accounting Principle $1.75 $0.22 $4.25 $0.25
Net income - Basic For Change in
Accounting Principle $--- $--- $(0.09) $---
Net income - Diluted For Change in
Accounting Principle $--- $--- $(0.09) $---
Net income - Basic After Change in
Accounting Principle $1.82 $0.22 $4.32 $0.25
Net income - Diluted After Change in
Accounting Principle $1.75 $0.22 $4.16 $0.25
Dividends $0.05 $0.05 $0.20 $0.20
Average Number of Shares Outstanding 249 128 184 125
Average Number of Shares Outstanding
- Diluted 261 129 193 126
* Revenues and costs and expenses for 2000 and 1999 reflect a
reclassification of certain amounts related to the SEC's staff bulletin
on revenue recognition. Net income for 2000 also reflects a change in
accounting principle related to these revenue recognition issues.
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Summary Financial Information * December 31 December 31
$ and shares in millions 2000 1999 2000 1999
Cash Flow from Operations before
Changes in Assets and Liabilities
Net income before cumulative effect
of change in accounting principle $457 $31 $824 $43
Depreciation, depletion and
amortization 257 56 593 218
Amortization of goodwill 20 --- 31 ---
Amortization of restricted stock --- --- 1 2
Non-cash merger expenses 3 --- 33 ---
Interest expense - zero coupon
debentures 3 --- 10 ---
Deferred income taxes 266 18 457 26
Provision for doubtful accounts --- --- 23 ---
Impairments related to international
properties 50 4 50 24
Other non-cash items (123) --- (147) ---
Total $933 $109 $1,875 $313
Capital Expenditures
Capital spending $647 $227 $1,484 $577
Capitalized interest 48 5 100 22
Capitalized overhead 56 16 144 81
Total $751 $248 $1,728 $680
Capitalization
Long-term debt $3,984 $1,443
Stockholders' equity 6,786 1,535
Total $10,770 $2,978
Capitalization Ratios
Long-term debt 37% 48%
Stockholders' equity 63% 52%
Total Assets $16,590 $4,098
* Revenues and costs and expenses for 2000 and 1999 reflect a
reclassification of certain amounts related to the SEC's staff bulletin
on revenue recognition. Net income for 2000 also reflects a change in
accounting principle related to these revenue recognition issues.
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Volumes and Prices December 31 December 31
2000 1999 2000 1999
Natural Gas
United States
Volumes, billion cubic feet 129 42 338 170
Average daily volumes, million cubic
feet per day 1,398 456 922 465
Price per thousand cubic feet $5.11 $2.40 $4.11 $2.08
Canada
Volumes, billion cubic feet 25 --- 46 ---
Average daily volumes, million cubic
feet per day 273 --- 127 ---
Price per thousand cubic feet $5.65 $--- $4.38 $---
Other International
Volumes, billion cubic feet --- --- 1 ---
Average daily volumes, million cubic
feet per day 6 --- 3 ---
Price per thousand cubic feet $1.05 $--- $1.08 $---
Total
Volumes, billion cubic feet 154 42 385 170
Average daily volumes, million cubic
feet per day 1,676 456 1,052 465
Price per thousand cubic feet $5.18 $2.40 $4.13 $2.08
Crude Oil and Condensate
United States
Volumes, million barrels 6 2 15 9
Average daily volumes, thousand
barrels per day 66 21 40 23
Price per barrel $29.07 $21.31 $28.72 $15.79
Algeria
Volumes, million barrels 3 2 10 6
Average daily volumes, thousand
barrels per day 30 23 26 17
Price per barrel $29.79 $24.57 $28.76 $18.23
Canada
Volumes, million barrels 2 --- 4 ---
Average daily volumes, thousand
barrels per day 26 --- 12 ---
Price per barrel $24.81 $--- $27.38 $---
Other International
Volumes, million barrels 4 --- 7 ---
Average daily volumes, thousand
barrels per day 40 --- 20 ---
Price per barrel $16.69 $--- $18.35 $---
Total
Volumes, million barrels 15 4 36 15
Average daily volumes, thousand
barrels per day 161 44 98 40
Price per barrel $25.45 $23.02 $26.49 $16.83
Natural Gas Liquids
Total
Volumes, million barrels 4 2 12 7
Average daily volumes, thousand
barrels per day 46 18 33 18
Price per barrel $23.36 $18.17 $21.70 $13.40
Total Energy Equivalent Barrels
Volumes, million EEBs 45 13 112 50
SOURCE Anadarko Petroleum Corporation
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CONTACT:
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Pearson, 281-876-8368, or investors, Paul Taylor, 281-874-3471,
or David Larson, 281-874-3265, all of Anadarko Petroleum
Corporation
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