HOUSTON, July 14 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today announced the closing of the merger transaction involving
Union Pacific Resources Group Inc. (NYSE: UPR) and Anadarko. Shareholders of
each company voted overwhelmingly on July 13 to approve the merger, by which
UPR becomes a wholly owned subsidiary of Anadarko.
UPR shareholders of record as of the close of business today (July 14)
will receive 0.455 shares of Anadarko common stock for each share of UPR
common stock they own, and will receive cash in lieu of fractional shares.
Trading in UPR common stock on the New York Stock Exchange will be suspended
as of close of trading today.
In connection with the merger transaction, Anadarko has guaranteed all of
the outstanding publicly held indebtedness of UPR and Union Pacific Resources,
Inc. (formerly Norcen Energy Resources Limited).
Anadarko Chairman and CEO Robert J. Allison, Jr., said that the merger
makes Anadarko one of the largest independent oil and gas companies in the
world, but added that the merger will ultimately mean much more than that to
shareholders.
"We intend for Anadarko to be one of the world's best E&P companies in
terms of growth and profitability," Allison said. "We're already on our way
to achieving that. Anadarko expects to report earnings of more than 50 cents
per share for the second quarter of 2000. This is well ahead of street
consensus and, given the current price outlook, we expect the new Anadarko to
earn more than $1 per share in the third quarter.
"That's possible," Allison said, "because the fundamentals of Anadarko and
UPR are complementary. Our combined portfolio, particularly the North
American gas assets, is outstanding and our people are the finest in the
industry. The strength of the merged companies -- the 'new' Anadarko --
should give us double-digit production growth, and strong earnings and cash
flow."
Allison added that the process of merging the two companies has gone well.
"From the start, we've had an aggressive merger schedule and we're right on
target. Our organizational structure is in place, and we've hired many of
UPR's key professional and support personnel. Sixty teams of employees from
both organizations have been working on transition and integration issues,
ensuring that the new Anadarko can move immediately to build value for
shareholders. We're very excited about what lies ahead for us."
Total proved reserves for the combined companies at year-end 1999 were
equivalent to approximately 1.94 billion barrels of oil or 11.65 trillion
cubic feet of natural gas. Proved reserves are evenly balanced between crude
oil and natural gas. Average daily production in May 2000 was approximately
211,000 barrels of oil and natural gas liquids, and 1.7 billion cubic feet of
gas. The new Anadarko has 56 drilling rigs in operation in the United States,
making it the most active domestic driller.
The new Anadarko has domestic exploration and production operations in
Texas and Louisiana; the Mid-Continent and Rocky Mountain regions of the
48 contiguous states; the shallow and deep waters of the Gulf of Mexico; and
Alaska. Internationally, key operations are located in western Canada,
Algeria, Tunisia, Guatemala and Venezuela.
On July 28, Anadarko will release its second quarter 2000 earnings and
other financial and operational information for both Anadarko and Union
Pacific Resources. A conference call during which Anadarko management will
discuss second quarter results with market analysts will begin at 10 a.m.
(CDST) that day and will be broadcast live on Anadarko's corporate website at
http://www.anadarko.com.
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.
Anadarko Petroleum Corporation
Houston, Texas
(NYSE: APC)
Anadarko Petroleum Corporation's core business is exploring for,
developing and producing natural gas, crude oil and natural gas liquids. The
Company employs the latest technology and risk management tools in its
worldwide search for new reserves of hydrocarbons.
Proved Reserves (as of 12/31/99)
Domestic: 4.8 Trillion cubic feet of gas*
434.8 Million barrels of oil and NGLs
International: 1.0 Trillion cubic feet of gas (97% in Canada)*
540.5 Million barrels of oil and NGLs
Energy Equivalent: 11.6 Trillion cubic feet of gas or
1.94 Billion barrels of oil
Average Daily Production (as of May 2000)
Domestic: 1.4 Billion cubic feet of gas**
110 Thousand barrels of oil and NGLs
International: 268 Million cubic feet of gas**
101 Thousand barrels of oil and NGLs
Total: 1.7 Billion cubic feet of gas
211 Thousand barrels of oil and NGLs
Acreage (net as of 12/31/99)
Domestic (onshore and offshore) 13.3 million
International (onshore and offshore) 7.8 million
Worldwide Total 21.1 million
Domestic Operating
Regions: Texas, Louisiana, Mid-Continent, Rocky Mountains, Alaska and
Offshore Gulf of Mexico
International Operating
Regions: Canada, Algeria, Tunisia, Guatemala and Venezuela
Domestic Rigs Operating: 56 (73% gas - 27% oil)
Debt /Total Capitalization (book): 41%
* 5th largest holder of natural gas reserves in N. America
** 6th largest producer of natural gas in N. America
Anadarko Petroleum Corporation
Executive Leadership Team
Robert J. Allison, Jr.
Chairman and Chief Executive Officer
George Lindahl III
Vice Chairman
John N. Seitz
President and Chief Operating Officer
Charles G. Manley
Senior Vice President, Administration
Michael E. Rose
Senior Vice President, Finance and Chief Financial Officer
Rex Alman III
Vice President, Domestic Operations
Michael D. Cochran
Vice President, Exploration
Morris L. Helbach
Vice President, Information Technology Services and Chief Information
Officer
James R. Larson
Vice President and Controller
Richard A. Lewis
Vice President, Human Resources
J. Stephen Martin
Vice President and General Counsel
Mark L. Pease
Vice President, Algeria
Gregory M. Pensabene
Vice President, Government Relations and Public Affairs
Albert L. Richey
Vice President and Treasurer
Richard Sharples
Vice President, Marketing and Planning
Bruce H. Stover
Vice President, Worldwide Business Development
William D. Sullivan
Vice President, Operations - International, GOM, Alaska
A. Paul Taylor, Jr.
Vice President, Investor Relations
Donald R. Willis
Vice President, Corporate Services
SOURCE Anadarko Petroleum Corporation
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Related links:
http://www.anadarko.com
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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
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