- Continued Strength in Commodity Prices Helps Push Earnings to 31 Cents Per
Share -
HOUSTON, April 27 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today reported substantially higher financial and operating
results for the first quarter of 2000. Earnings were 31 cents per share
(basic) compared to a loss of 19 cents per share in the first quarter of 1999.
"Our strong first quarter results reflect the tremendous recovery in
commodity prices, along with a modest increase in our production volumes,"
said Robert J. Allison, Jr., Anadarko Chairman and Chief Executive Officer.
"We anticipated this recovery in oil and gas prices, which has resulted, at
least in part, from last year's industry-wide slashing of capital
expenditures. With demand for hydrocarbons undiminished, this inevitably
helped lead to tighter supplies and higher prices.
"We'll take continued advantage of these higher prices with increasing
natural gas production from the Bossier Play in East Texas and with initial
gas production from the Hickory Field in the Gulf of Mexico. We'll also
produce more oil -- with initial production both from the Alpine Field in
Alaska and the Tanzanite Field in the Gulf of Mexico.
For 2000's first quarter, Anadarko reported net income available to common
stockholders of $39.1 million on revenues of $247 million. By comparison,
during 1999's first quarter, Anadarko had a net loss of $23.l million on
$136 million of revenues. The loss in the first quarter of 1999 reflected a
non-cash charge of $20 million before taxes ($12.8 million after taxes)
related to operations in Eritrea. Excluding the foreign impairment, the
company's net loss for the first quarter of 1999 was $10.3 million, or 8 cents
per share (basic).
The improved revenues and earnings in the first three months of 2000
compared to the same period a year ago were due primarily to the significant
improvement in commodity prices, partially offset by higher operating
expenses, administrative and general costs, and interest expense.
First Quarter Production
During the first quarter of 2000, Anadarko produced 13.2 million energy
equivalent barrels, up 2% from 12.9 million barrels in 1999's same period.
Anadarko's oil production for the first three months of 2000 averaged
42,000 barrels of oil per day, compared to 44,000 barrels per day in 1999's
first quarter. Anadarko's average oil price for the first quarter of 2000 was
$26.34 per barrel, up nearly 150% from $10.60 per barrel a year ago.
During 2000's first quarter, Anadarko's natural gas production was
essentially level with 1999's same period. Gains in production from the
Bossier gas play offset production declines in the Gulf of Mexico. The
company's wellhead price for natural gas was $2.46 per thousand cubic feet
(Mcf) for the first three months of 2000, up 55% from $1.59 per Mcf a year
ago.
In the first three months of 2000, the company's natural gas liquids
(NGLs) sales volumes averaged 22,000 barrels per day, a 22% gain from
18,000 barrels per day in 1999's corresponding quarter. The company's average
price for NGLs was $20.73 per barrel in 2000's first quarter, up 141% from
$8.60 per barrel in 1999's first three months.
First Quarter Operations Highlights
During the first quarter of 2000, Anadarko continued to post excellent
results from its Bossier Play in East Texas. The company's net natural gas
production from the Bossier Play was 135 million cubic feet of gas per day at
the end of March 2000, up from 38 million cubic feet per day at the end of the
first quarter 1999.
In Algeria, work continued on a major expansion project that will boost
production from the company's operations at the Hassi Berkine South and Hassi
Berkine Fields in 2001 and early 2002. Anadarko and its partners also are
moving ahead with development plans for the Ourhoud Field, with first
production also scheduled in 2002.
In Alaska, development facilities for the Alpine Field on the North Slope
are nearing completion. Initial production of 40,000 BOPD (gross) is expected
in the third quarter.
Work also continued on the production platforms for the Tanzanite and
Hickory Fields in the Gulf of Mexico. The platforms are scheduled for
installation in late summer 2000. Regarding its operations elsewhere in the
Gulf of Mexico, Anadarko recently announced the Marco Polo discovery at Green
Canyon Block 608. The discovery well found 320 feet of pay above salt.
Additional drilling along with sidetracking operations will be used to further
evaluate this discovery.
Comparative financial highlights follow (amounts in millions, except per
share data):
Quarter Ended March 31
2000 1999
Net income (loss) available to common
stockholders $39.1 $(23.1)*
Earnings (loss) per share - basic $0.31 $(0.19)*
Earnings (loss) per share - diluted $0.30 $(0.19)*
Revenues $247.1 $136.4
Average common shares outstanding 128.0 120.5
* Includes a non-cash charge of $20 million before taxes ($12.8 million
after taxes) related to the company's remaining operations in Eritrea.
Excluding the foreign impairment, the net loss was $10.3 million, or
$0.08 per share (diluted).
Except for historical information, all other information in this
presentation consists of forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ materially from those projected, anticipated or implied.
The most significant of these risks and uncertainties are described in
Anadarko's SEC filings and reports and exhibits to those reports, and include
(but are not limited to) the costs and difficulties related to the integration
of acquired businesses, commodity pricing and demand, exploration and
operating risks, development risks, and the costs and other effects of
governmental regulation and legal and administrative proceedings. Anadarko
undertakes no obligation to publicly update or revise any forward-looking
statements.
For more information about Anadarko's worldwide operations, visit the
company's web site at http://www.anadarko.com.
Anadarko Petroleum Corporation
Quarter Ended
Summary Financial Information March 31
$ and shares in millions 2000 1999
Revenues
Gas sales $ 102.1 $ 77.8
Oil and condensate sales 101.8 43.6
Natural gas liquids and other 43.2 15.0
Total 247.1 136.4
Costs and Expenses
Operating expenses 43.0 34.1
Administrative and general 30.1 24.4
Depreciation, depletion and amortization 57.3 56.5
Other taxes 11.3 9.3
Impairments related to international properties --- 20.0
Total 141.7 144.3
Operating Income (Loss) 105.4 (7.9)
Interest Expense 21.1 18.6
Income (Loss) before Income Taxes 84.3 (26.5)
Income Taxes 42.5 (6.1)
Net Income (Loss) $ 41.8 $ (20.4)
Preferred Stock Dividends 2.7 2.7
Net Income (Loss) Available to Common
Stockholders $ 39.1 $ (23.1)
Per Common Share
Net income (loss) - basic $ 0.31 $ (0.19)
Net income (loss) - diluted $ 0.30 $ (0.19)
Dividends $ 0.05 $ 0.05
Average Number of Shares Outstanding 128.0 120.5
Cash Flow from Operations before Changes in
Assets and Liabilities
Net income (loss) $41.8 $ (20.4)
Depreciation, depletion and amortization 57.3 56.5
Amortization of restricted stock 0.4 0.3
Interest expense - zero coupon debentures 0.8 ---
Deferred U.S. income taxes 24.6 (10.7)
Impairments related to international properties --- 20.0
Total $ 124.9 $ 45.7
Capital Expenditures
Capital spending $ 156.5 $ 84.3
Capitalized interest 5.1 5.5
Capitalized overhead 22.4 22.0
Total $ 184.0 $ 111.8
Capitalization
Long-term debt $1,573.2 $1,560.8
Stockholders' equity 1,586.6 1,234.5
Total $3,159.8 $2,795.3
Capitalization Ratios
Long-term debt 50% 56%
Stockholders' equity 50% 44%
Total Assets $4,219.8 $3,657.8
Anadarko Petroleum Corporation
Quarter Ended
Volumes and Prices March 31
2000 1999
Natural Gas
Volumes, billion cubic feet 44.3 44.0
Average daily volumes, million cubic feet per day 486 489
Price per thousand cubic feet $ 2.46 $ 1.59
Crude Oil and Condensate
United States
Volumes, thousand barrels 1,847 2,324
Average daily volumes, thousand barrels per day 20 26
Price per barrel $ 24.72 $ 9.92
Algeria
Volumes, thousand barrels 1,967 1,644
Average daily volumes, thousand barrels per day 22 18
Price per barrel $ 27.87 $ 11.57
Total
Volumes, thousand barrels 3,814 3,968
Average daily volumes, thousand barrels per day 42 44
Price per barrel $ 26.34 $ 10.60
Natural Gas Liquids
Volumes, thousand barrels 2,006 1,632
Average daily volumes, thousand barrels per day 22 18
Price per barrel $ 20.73 $ 8.60
Total Energy Equivalent Barrels
Volumes, million EEBs 13.2 12.9
SOURCE Anadarko Petroleum Corporation
 back to top
Related links:
http://www.anadarko.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990430/ANADARKOLOGO
PR Newswire Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/038950.html or fax,
800-758-5804, ext. 038950
CONTACT:
analysts and investors, A. Paul Taylor, Jr.,
281-874-3471, or media, Tony Canino, 281-873-3855, both of
Anadarko Petroleum Corporation
|
