Company's Production Will Double in 2000
HOUSTON, July 28 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today reported record second quarter financial and operating
results as a stand alone company, and pro forma results for the combined
operations of APC and Union Pacific Resources Group. In early July, the
merger involving the two companies was completed, making Anadarko Petroleum
one of the largest and financially strongest independent oil and gas companies
in the world.
"Anadarko and UPR each benefited from higher commodity prices during the
second quarter and generated substantial cash flow which we'll use to
accelerate operating activities and grow production," said Robert J. Allison,
Jr., Anadarko Chairman and CEO. "Anadarko, by itself, had a great quarter
with record earnings per share, cash flow and production. On a pro forma
basis, the combined companies would have generated second quarter earnings of
$210 million, cash flow of $560 million and total production of 44.8 million
energy equivalent barrels (492,000 per day). With the production added by the
UPR merger in the last six months of the year, Anadarko's 2000 annual
production will easily double our 1999 production. We expect to produce more
than 200 million energy equivalent barrels in 2001."
Second Quarter Results - Anadarko
For the second quarter of 2000, Anadarko net income available to common
shareholders was $74.9 million, or $0.58 per share (basic), on revenues of
$306.3 million. For the same period in 1999, net income was $8 million, or
$0.06 per share (basic), on revenues of $161.5 million. Cash flow from
operations during the second quarter of 2000 totaled $180.0 million, a 156%
increase over the $70.4 million in the corresponding quarter of 1999.
Anadarko attributed the improved results in the second quarter to
significantly higher commodity prices and to increased production. Anadarko
had no significant commodity price hedges in place during the period.
During the second quarter of 2000, Anadarko produced approximately
14.2 million energy equivalent barrels, up 15% from the 12.3 million barrels
produced in the same period of 1999. The increased production is attributed
primarily to Anadarko's oil production in Algeria and in its Bossier Field
natural gas play in East Texas.
Oil prices in the second quarter averaged $27.37 per barrel, compared with
$14.97 per barrel in the same quarter last year. Total oil production in the
quarter averaged 46,000 barrels per day, up 9% from 42,000 barrels per day in
the second quarter of 1999.
Natural gas prices at the wellhead averaged $3.20 per thousand cubic feet
(Mcf) during the quarter, up 64% from the average of $1.95 per Mcf received in
the comparable quarter of 1999. Natural gas production in the second quarter
of 2000 averaged 536 million cubic feet (MMcf) per day, an increase of 16%
over the 461 MMcf per day produced in the same period last year. The increase
is due primarily to the continued strength of Anadarko's Bossier Field natural
gas play in East Texas.
The prices received during the quarter for Anadarko's NGLs averaged
$20.10 per barrel, compared with the $11.91 per barrel average received in the
same quarter last year. Production of NGLs during the quarter averaged
21,000 barrels per day, compared with 17,000 barrels per day in the second
quarter of 1999.
First Half Results - Anadarko
For the first six months of 2000, Anadarko reported net income available
to common stockholders of $114.0 million, or $0.89 per share (basic), on
revenues of $553.4 million. For the comparable period in 1999, Anadarko had a
net loss of $15.1 million, or $0.12 per common share, on revenues of
$297.9 million. The loss included a first quarter 1999 non-cash charge of
$20 million ($12.8 million after taxes) related to Anadarko's Eritrean
exploration program. Excluding the foreign impairment, Anadarko had a net
loss to common stockholders of $2.3 million, or $0.02 per share for the first
half of 1999. Cash flow from operations in the first half of 2000 totaled
$304.9 million compared with $116.2 million for the same period last year.
Anadarko attributed the improved revenues and earnings to significantly higher
commodity prices and increased production volumes.
During the first half of 2000, Anadarko produced approximately
27.4 million energy equivalent barrels, up 8% from the 25.3 million barrels
produced in the same period of 1999.
Anadarko's oil production for the first six months of 2000 averaged
44,000 barrels per day, compared with an average of 43,000 barrels per day in
the first half of 1999. Anadarko's average oil price received for the 2000
period was $26.88 per barrel, up 111% from the $12.74 per barrel received in
the same period last year.
In the first six months of 2000, Anadarko's natural gas production
averaged 511 MMcf of gas per day, up 8% from the average of 475 MMcf per day
produced in the same period last year. The wellhead price received for
natural gas in the first half of 2000 averaged $2.84 per Mcf, a 60% increase
above the average of $1.77 per Mcf received in the same period last year.
During the first half of 2000, Anadarko's production of NGLs averaged
22,000 barrels per day, compared with 17,000 barrels per day in the same
period in 1999. Anadarko's average price received for NGLs was $20.43 per
barrel, up from $10.20 per barrel in the first six months of last year.
Second Quarter - Pro Forma Results
For the second quarter of 2000, pro forma net income from continuing
operations for the new Anadarko totaled $210 million, or $0.87 per common
share (basic), on pro forma revenues of $842 million. Pro forma cash flow
from operations was $560 million in the quarter. Pro forma production for the
new Anadarko during the second quarter totaled 44.8 million energy equivalent
barrels, with average production of 1.7 billion cubic feet (Bcf) of natural
gas per day and 211,000 barrels of crude oil, condensate and natural gas
liquids (NGLs) per day.
First Half - Pro Forma Results
For the first six months of 2000, pro forma net income from continuing
operations for the new Anadarko totaled $370 million, or $1.53 per common
share (basic), on pro forma revenues of $1.6 billion. Pro forma cash flow
from operations totaled $1.0 billion in the period. Pro forma production for
the new Anadarko during the first half of the year totaled 88.4 million energy
equivalent barrels, with average daily production of 1.7 Bcf of natural gas
and 208,000 barrels of crude oil, condensate and NGLs.
A conference call, during which Anadarko management will discuss second
quarter results with market analysts, will begin at 10:00 a.m. (CDST) today,
July 28, and will be broadcast live on Anadarko's corporate website at
http://www.anadarko.com .
Anadarko Comparative Financial Highlights
Comparative financial highlights follow (amounts in millions, except per
share data):
Quarter Ended June 30
2000 1999
Net income available to common
stockholders $74.9 $ 8.0
Earnings per share - basic $0.58 $0.06
Revenues $306.3 $161.5
Average common shares outstanding 128.3 125.3
Six Months Ended June 30
2000 1999
Net income (loss) available to common
stockholders $114.0 $(15.1)*
Earnings (loss) per share - basic $0.89 $(0.12)*
Revenues $553.4 $297.9
Average common shares outstanding 128.2 122.9
* 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 $2.3 million, or
$0.02 per share (basic).
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
Quarter Ended Year to Date
Summary Financial Information June 30 June 30
$ and shares in millions 2000 1999 2000 1999
Revenues
Gas sales $152.6 $ 83.8 $ 254.7 $ 161.7
Oil and condensate sales 114.1 58.1 215.9 101.6
Natural gas liquids and other 39.6 19.6 82.8 34.6
Total 306.3 161.5 553.4 297.9
Costs and Expenses
Operating expenses 45.8 34.4 88.7 68.5
Administrative and general 30.1 23.2 60.2 47.6
Depreciation, depletion and
amortization 61.9 53.9 119.3 110.5
Other taxes 13.4 8.6 24.7 17.7
Impairments related to
international properties --- --- --- 20.0
Total 151.2 120.1 292.9 264.3
Operating Income 155.1 41.4 260.5 33.6
Interest Expense 20.5 18.5 41.6 37.2
Income (Loss) before Income
Taxes 134.6 22.9 218.9 (3.6)
Income Taxes 56.9 12.2 99.4 6.1
Net Income (Loss) $ 77.7 $ 10.7 $ 119.5 $ (9.7)
Preferred Stock Dividends 2.8 2.7 5.5 5.4
Net Income (Loss) Available to
Common Stockholders $ 74.9 $ 8.0 $ 114.0 $ (15.1)
Per Common Share
Net income (loss) - basic $ 0.58 $ 0.06 $ 0.89 $ (0.12)
Net income (loss) - diluted $ 0.56 $ 0.06 $ 0.86 $ (0.12)
Dividends $ 0.05 $ 0.05 $ 0.10 $ 0.10
Average Number of Shares
Outstanding 128.3 125.3 128.2 122.9
Cash Flow from Operations before
Changes in Assets and Liabilities
Net income (loss) $ 77.7 $ 10.7 $ 119.5 $ (9.7)
Depreciation, depletion and
amortization 61.9 53.9 119.3 110.5
Amortization of restricted stock 0.4 0.4 0.8 0.7
Interest expense - zero coupon
debentures 3.0 --- 3.8 ---
Deferred U.S. income taxes 37.0 5.4 61.5 (5.3)
Impairments related to
international properties --- --- --- 20.0
Total $180.0 $ 70.4 $ 304.9 $ 116.2
Capital Expenditures
Capital spending $239.3 $120.9 $ 395.8 $ 205.2
Capitalized interest 5.0 5.5 10.1 11.0
Capitalized overhead 22.4 22.8 44.8 44.8
Total $266.7 $149.2 $ 450.7 $ 261.0
Capitalization
Long-term debt $1,655.8 $1,305.8
Stockholders' equity 1,666.7 1,492.8
Total $3,322.5 $2,798.6
Capitalization Ratios
Long-term debt 50% 47%
Stockholders' equity 50% 53%
Total Assets $4,568.4 $3,690.6
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Volumes and Prices June 30 June 30
2000 1999 2000 1999
Natural Gas
Volumes, billion cubic feet 48.8 41.9 93.1 86.0
Average daily volumes, million cubic
feet per day 536 461 511 475
Price per thousand cubic feet $ 3.20 $ 1.95 $ 2.84 $ 1.77
Crude Oil and Condensate
United States
Volumes, thousand barrels 1,903 2,167 3,750 4,491
Average daily volumes, thousand
barrels per day 21 24 21 25
Price per barrel $ 26.20 $ 14.65 $ 25.47 $ 12.20
Algeria
Volumes, thousand barrels 2,256 1,647 4,223 3,291
Average daily volumes, thousand
barrels per day 25 18 23 18
Price per barrel $ 28.36 $ 15.38 $ 28.13 $ 13.48
Total
Volumes, thousand barrels 4,159 3,814 7,973 7,782
Average daily volumes, thousand
barrels per day 46 42 44 43
Price per barrel $ 27.37 $ 14.97 $ 26.88 $ 12.74
Natural Gas Liquids
Volumes, thousand barrels 1,914 1,530 3,920 3,162
Average daily volumes, thousand
barrels per day 21 17 22 17
Price per barrel $ 20.10 $ 11.91 $ 20.43 $ 10.20
Total Energy Equivalent Barrels
Volumes, million EEBs 14.2 12.3 27.4 25.3
Anadarko Petroleum Corporation
Pro Forma Condensed Combined Financial Information
Summary Financial Information Quarter Ended Year to Date
$ and shares in millions June 30, 2000
June 30, 2000
Revenues
Gas sales $408.1 $754.0
Oil and condensate sales 297.5 587.5
Natural gas liquids sales 82.2 171.7
Minerals and other 54.3 98.1
Total 842.1 1,611.3
Costs and Expenses
Operating expenses 117.0 223.5
Administrative and general 56.8 109.2
Depreciation, depletion and amortization 245.3 485.0
Other taxes 52.7 100.3
Amortization of goodwill 13.0 25.9
Total 484.8 943.9
Operating Income 357.3 667.4
Other Income 30.6 15.8
Interest Expense (29.8) (62.0)
Income before Income Taxes 358.1 621.2
Income Taxes 145.2 245.3
Income from Continuing Operations $212.9 $375.9
Preferred Stock Dividends 2.7 5.4
Net Income from Continuing Operations
Available to Common Stockholders $210.2 $370.5
Per Common Share
Income from continuing operations - basic $0.87 $1.53
Income from continuing operations - diluted $0.84 $1.49
Average Number of Shares Outstanding 242.5 242.4
Cash Flow from Operations before Changes
in Assets and Liabilities
Net income from continuing operations $212.9 $375.9
Depreciation, depletion and amortization 245.3 485.0
Amortization of goodwill 13.0 25.9
Amortization of restricted stock 0.4 0.8
Interest expense - zero coupon debentures 3.0 3.8
Deferred income taxes 85.3 140.8
Total $559.9 $1,032.2
Capital Expenditures $462.0 $852.6
Capitalization
Long-term debt $4,141.6
Stockholders' equity 5,730.0
Total $9,871.6
Capitalization Ratios
Long-term debt 42%
Stockholders' equity 58%
Total Assets $14,859.4
Anadarko Petroleum Corporation
Pro Forma Condensed Combined Volumes and Prices
Volumes and Prices Quarter Ended Year to Date
June 30, 2000 June 30, 2000
Natural Gas
United States
Volumes, billion cubic feet 128.3 253.6
Average daily volumes, million cubic feet
per day 1,409 1,393
Price per thousand cubic feet $2.75 $2.57
Canada
Volumes, billion cubic feet 24.2 48.8
Average daily volumes, million cubic feet
per day 266 268
Price per thousand cubic feet $2.40 $2.28
Other International
Volumes, billion cubic feet 0.7 1.3
Average daily volumes, million cubic feet
per day 8 7
Price per thousand cubic feet $1.06 $1.04
Total
Volumes, billion cubic feet 153.2 303.7
Average daily volumes, million cubic feet
per day 1,684 1,669
Price per thousand cubic feet $2.69 $2.51
Crude Oil and Condensate
United States
Volumes, thousand barrels 5,452 10,939
Average daily volumes, thousand barrels
per day 60 61
Price per barrel $ 22.33 $ 22.34
Algeria
Volumes, thousand barrels 2,256 4,223
Average daily volumes, thousand barrels
per day 25 23
Price per barrel $ 28.36 $ 28.13
Canada
Volumes, thousand barrels 2,748 5,405
Average daily volumes, thousand barrels
per day 30 30
Price per barrel $ 17.66 $ 18.47
Other International
Volumes, thousand barrels 4,131 7,917
Average daily volumes, thousand barrels
per day 45 44
Price per barrel $ 15.22 $ 15.55
Total
Volumes, thousand barrels 14,588 28,484
Average daily volumes, thousand barrels
per day 160 157
Price per barrel $ 20.37 $ 20.58
Natural Gas Liquids
United States
Volumes, thousand barrels 4,435 8,943
Average daily volumes, thousand barrels
per day 49 50
Price per barrel $ 17.78 $ 18.46
Canada
Volumes, thousand barrels 200.2 364.0
Average daily volumes, thousand barrels
per day 2 2
Price per barrel $ 17.22 $ 17.58
Total
Volumes, thousand barrels 4,635 9,307
Average daily volumes, thousand barrels
per day 51.2 52
Price per barrel $ 17.76 $ 18.43
Total Energy Equivalent Barrels
Volumes, million EEBs 44.8 88.4
SOURCE Anadarko Petroleum Corporation
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CONTACT:
analysts and investors, A. Paul Taylor, Jr.,
281-874-3471, or David R. Larson, 281-874-3265, or media, Tony
Canino, 281-873-3855, all of Anadarko Petroleum Corporation
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