HOUSTON, April 26 /PRNewswire/ -- Continuing its trend of increasing
shareholder value and delivering on promised production growth and
profitability, Anadarko Petroleum Corporation (NYSE: APC) announced record
financial results for the first quarter 2001.
Anadarko had net income available to common stockholders of $656 million,
or $2.50 per share (diluted) for the first quarter of 2001. By comparison,
for the first quarter 2000, the company reported net income available to
common stockholders of $31 million, or 24 cents per share (diluted).
Cash flow from operations during the first quarter of 2001 totaled
$1.117 billion ($4.47 per share), a 727 percent increase over the
$135 million ($1.06 per share) in the first quarter of 2000.
"Our first quarter shows great growth, and we intend to continue growing
with the drill bit. We've set some very ambitious targets for the full year
2001, and we're well on our way to achieving those goals," said Robert J.
Allison, Jr., Anadarko Chairman and Chief Executive Officer. "Our first
quarter earnings of $656 million come within striking distance of earning
almost as much as we did for all of 2000, which was $796 million."
Significantly increased production, coupled with strong natural gas
prices, contributed to the company's earnings growth.
During the first quarter of 2001, Anadarko's production of natural gas,
crude oil and natural gas liquids was 47 million barrels of oil equivalent
(BOE), or 522,000 barrels a day, compared to 14 million BOE for first quarter
2000. The 236 percent increase in production volumes is attributed primarily
to last year's acquisition of UPR and increased production from the company's
operations in Texas, the Gulf of Mexico and Alaska.
"Anadarko was the most active driller in North America last year and this
past quarter -- and we achieved significant production growth, because we had
the people and the prospects to take advantage of the thriving natural gas
market when the time came. Because we didn't lay off people over the lean
years and concentrated on technology, we have a big inventory of prospects to
drill," Allison said.
"Profitable growth remains our primary focus at Anadarko," he added, "and
we're continuing to pursue our goal of reaching 200 million barrels of
production for 2001."
Highlights
-- Anadarko has increased its 2001 capital spending plan to $3 billion
and will drill approximately 2,000 wells this year. The company
expects to complete an average of more than five wells per day for
each day this year.
-- On March 16, Anadarko completed the $1 billion acquisition of Berkley
Petroleum Corp. In addition to being a good fit with existing
strategy, the deal is expected to be accretive to earnings and cash
flow and added exploration and development projects. It will fast-
track the growth of Anadarko's Canadian oil and gas business.
-- In East Texas, development of Anadarko's Bossier play -- the company's
most active drilling area -- continued at a healthy pace with
significant completions in the first quarter. Anadarko currently has
26 drilling rigs active in the Bossier area and expects to drill about
220 wells there this year.
-- In the March Gulf of Mexico Lease Sale No. 178, Anadarko was the
apparent high bidder on 23 tracts covering 120,000 acres. The new
acreage, which represents an investment of $32 million for Anadarko,
includes 16 deepwater blocks. The tracts bring the company's total
holdings to 353 leases in the Gulf of Mexico.
-- Production from Anadarko's Tanzanite and Hickory fields in the Gulf of
Mexico also continues to increase. The Tanzanite field is currently
producing 20,200 barrels of oil per day and 107 million cubic feet
(MMcf) of natural gas per day. The Hickory field is producing about
125 MMcf of gas per day and 10,300 barrels of condensate per day from
three wells. A fourth well is nearing completion.
-- Anadarko signed an agreement with SONATRACH in March to resume
exploration activities in Algeria on Blocks 404, 208 and 211. In
addition, 3-D seismic acquisition for the ongoing development programs
in Blocks 404 and 208 is nearing completion. The Anadarko/SONATRACH
association has discovered nearly 2.8 billion barrels of oil on these
blocks since 1989.
-- The company was nationally recognized for its outstanding performance
by a number of outside sources. For example, Anadarko was named No. 2
overall in the "BusinessWeek" 50 -- a ranking of the best-performing
companies over the last one and three years of the Standard & Poor's
500.
Houston-based Anadarko Petroleum Corporation is the world's largest
independent E&P company, with proved reserves of more than 2 billion barrels
of oil equivalent. Domestically, it has operations in Texas, Louisiana, the
Mid-Continent and Rocky Mountain regions, Alaska and in the shallow and deep
waters of the Gulf of Mexico. For the full-year 2000, Anadarko was the most
active driller in North America. Internationally, it is active in Canada,
Algeria, Tunisia, West Africa, Venezuela, Georgia and the North Atlantic.
Financial Data
Three pages of summary financial data follow.
2001 Annual Meeting of Stockholders
The 2001 Annual Meeting of Stockholders will be held April 26, 9:30 a.m.
CDT in Houston and will be webcast live at http://www.anadarko.com. The meeting will
also be available for rebroadcast via the web for the next two weeks.
Earnings Conference Call
Earnings Conference Call set for April 27 at 9:30 a.m. CDT. More details
available at http://www.anadarko.com.
Anadarko Operations Report
For more details on Anadarko's operations, please refer to the
comprehensive report on individual wells drilled throughout the company during
the first quarter. The report is available on the company's website at
http://www.anadarko.comin the News Bureau.
This news 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 assurance, 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 2000
Annual Report on Form 10-K.
http://www.anadarko.com
Anadarko Petroleum Corporation
Quarter Ended
Summary Financial Information * March 31 March 31
$ and shares in millions 2001 2000
Revenues
Gas sales $ 1,114 $ 109
Oil and condensate sales 361 118
Natural gas liquids sales 73 42
Marketing sales 1,500 391
Minerals and other 3 1
Total 3,051 661
Costs and Expenses
Marketing purchases and transportation 1,475 380
Operating expenses 157 61
Administrative and general 49 30
Depreciation, depletion and amortization 274 59
Other taxes 83 12
Impairments related to international properties 7 ---
Amortization of goodwill 17 ---
Total 2,062 542
Operating Income 989 119
Other (Income) Expense
Merger expenses 10 ---
Interest expense 22 21
Other (income) expense (96) ---
Total (64) 21
Income before Income Taxes 1,053 98
Income Taxes 389 47
Net Income Before Cumulative Effect
of Change in Accounting Principle $ 664 $ 51
Preferred Stock Dividend 3 3
Net Income Available to Common
Stockholders Before Cumulative Effect
of Change in Accounting Principle $ 661 $ 48
Cumulative Effect of Change
in Accounting Principle 5 17
Net Income Available to Common Stockholders $ 656 $ 31
Per Common Share
Net income - before change in accounting
principle - basic $ 2.64 $ 0.37
Net income - before change in accounting
principle - diluted $ 2.52 $ 0.37
Change in accounting principle - basic $ (0.02) $ (0.13)
Change in accounting principle - diluted $ (0.02) $ (0.13)
Net income - basic $ 2.62 $ 0.24
Net income - diluted $ 2.50 $ 0.24
Dividends $ 0.05 $ 0.05
Average Number of Shares Outstanding - Basic 250 128
Average Number of Shares Outstanding - Diluted 263 131
* Revenues and costs and expenses for 2000 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 accounting for foreign crude oil inventories. Net
income for 2001 reflects a change in accounting principle related to
accounting for derivative instruments and hedging activities.
Cash Flow from Operations before Changes in Assets and Liabilities
Net income before cumulative effect
of change in accounting principle $ 664 $ 51
Depreciation, depletion and amortization 274 59
Amortization of goodwill 17 ---
Non-cash merger expenses 3 ---
Interest expense - zero coupon debentures 3 1
Deferred income taxes 209 24
Impairments related to international properties 7 ---
Other non-cash items (60) ---
Total $ 1,117 $ 135
Capital Expenditures
Capital spending $ 571 $ 157
Capitalized interest 51 5
Capitalized overhead 36 22
Total $ 658 $ 184
Capitalization
Total debt $ 4,905 $ 1,573
Stockholders' equity 7,443 1,578
Total $ 12,348 $ 3,151
Capitalization Ratios
Total debt 40% 50%
Stockholders' equity 60% 50%
* Revenues and costs and expenses for 2000 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 accounting for foreign crude oil inventories. Net
income for 2001 reflects a change in accounting principle related to
accounting for derivative instruments and hedging activities.
Anadarko Petroleum Corporation
Quarter Ended
Volumes and Prices March 31
2001 2000
Natural Gas
United States
Volumes, billion cubic feet 139 44
Average daily volumes, million cubic
feet per day 1,548 486
Price per thousand cubic feet $6.86 $2.46
Canada
Volumes, billion cubic feet 24 ---
Average daily volumes, million cubic
feet per day 269 ---
Price per thousand cubic feet $6.50 $---
Other International
Volumes, billion cubic feet 1 ---
Average daily volumes, million cubic
feet per day 5 ---
Price per thousand cubic feet $1.03 $---
Total
Volumes, billion cubic feet 164 44
Average daily volumes, million cubic
feet per day 1,822 486
Price per thousand cubic feet $6.79 $2.46
Crude Oil and Condensate
United States
Volumes, million barrels 8 2
Average daily volumes,
thousand barrels per day 89 20
Price per barrel $25.44 $24.83
Canada
Volumes, million barrels 3 ---
Average daily volumes,
thousand barrels per day 31 ---
Price per barrel $16.56 $---
Algeria
Volumes, million barrels 2 2
Average daily volumes,
thousand barrels per day 25 29
Price per barrel $25.12 $27.30
Other International
Volumes, million barrels 4 ---
Average daily volumes,
thousand barrels per day 41 ---
Price per barrel $14.87 $---
Total
Volumes, million barrels 17 4
Average daily volumes,
thousand barrels per day 186 49
Price per barrel $21.59 $26.28
Natural Gas Liquids
Total
Volumes, million barrels 3 2
Average daily volumes, thousand
barrels per day 36 22
Price per barrel $22.54 $20.73
Total Barrels of Oil Equivalent (BOE)
Volumes, million BOEs 47 14
SOURCE Anadarko Petroleum Corporation
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CONTACT:
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Warren, 281-874-3321, or investors, Paul Taylor, 281-874-3471,
or David Larson, 281-874-3265, all of Anadarko Petroleum
Corporation
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