Anadarko Announces Operating Results for 1999
- Production Volumes Are the Highest in Company History
- Reserve Additions Outpace Production for 18th Consecutive Year
- Proved Reserves Up 6%
HOUSTON, Jan. 26 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today released its 1999 operating results, which were highlighted by record production volumes. Total production surpassed the company's target for the year and reached 49.5 million energy equivalent barrels (MMEEBs), a 5% jump compared to 1998 volumes.
During 1999, Anadarko added reserves of crude oil and natural gas equal to 213% of annual production (stated on an energy equivalent barrel -- or EEB -- basis). This marks the 18th consecutive year that the company has more than replaced annual production volumes with reserve additions -- a record that is unmatched in the industry.
"Anadarko, like most exploration and production companies, benefited from higher commodity prices in 1999," said Anadarko Chairman and Chief Executive Officer Robert J. Allison, Jr. "What sets us apart from the competition, however, is our continued success in finding high-quality, long-lived hydrocarbon reserves at costs that are among the lowest in the industry."
Finding Cost
In 1999, Anadarko's worldwide finding cost for proved reserves was $4.87 per energy equivalent barrel (EEB), versus $3.13 per EEB in 1998. For the five-year period from 1995-1999, the company's worldwide finding cost was $3.53 per EEB. The most recent five-year industry average (1994-1998) for worldwide finding cost was $4.66 per EEB. (Source: Arthur Andersen). Industry data for 1999 is not yet available.
In the U.S., Anadarko's 1999 finding cost was $9.06 per EEB. For the years 1995-1999, the company's U.S. finding cost was $4.29 per EEB. By comparison, the industry's U.S. finding cost for 1998 was $9.32 per EEB and for the five-year period from 1994-1998 (the most recent industry data available) was $5.73 per EEB. (Source: Arthur Andersen). Anadarko believes that finding costs in any single year can be significantly affected by spending patterns in exploring for, developing and producing reserves; a multi-year average is a more accurate representation of a company's long-term success.
Proved Reserves
In 1999, the company added 105.4 MMEEBs (after divestitures). Most of the additions in 1999 were the result of continued successful operations in Algeria, Alaska and the Bossier Play in East Texas.
Anadarko's proved reserves at year-end 1999 were 991.0 MMEEBs, a 6% increase over year-end 1998. The company's reserves have increased at an average compound rate of 16% over the past five years, following significant discoveries in the Gulf of Mexico, Algeria, Alaska and East Texas.
Proved natural gas reserves at year-end 1999 totaled 2.51 Tcf, down slightly from 2.65 Tcf at year-end 1998. Proved reserves of crude oil, condensate and natural gas liquids (NGLs) grew 16% from 494.0 MMBbls at December 31, 1998 to 573.2 MMBbls at year-end 1999. Domestically, Anadarko had 702.3 MMEEBs of proved reserves at year-end 1999, up slightly over the 690.1 MMEEBs at the end of 1998. In Algeria, Anadarko had proved reserves of 288.8 MMEEBs at year-end 1999, up from 245 MMEEBs at year-end 1998. U.S. reserves of oil and gas now account for 71% of the company's total reserves, compared to 74% at year-end 1998. Worldwide, Anadarko's total reserve mix is comprised of 42% natural gas and 58% crude oil, condensate and NGLs.
In 1999, Anadarko's capital expenditures were $680 million. The major capital projects for 1999 included ongoing development of discoveries in Algeria and Alaska, as well as construction of production platforms to develop discoveries in the Gulf of Mexico. Significant capital resources were also directed to developing the company's natural gas reserves in the East Texas Bossier Play.
"Anadarko generated a great deal of momentum in 1999," said Allison, "and we're carrying it right into 2000. We had 27 rigs working domestically as of January 1, and we'll be adding to them in the months ahead. We're looking forward to a very productive year."
This press 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 assurances, 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 1998 Annual Report on Form 10-K.
For more information about Anadarko's worldwide operations, please visit the company's web site at www.anadarko.com.
SOURCE Anadarko Petroleum Corporation
CO: Anadarko Petroleum Corporation
ST: Texas
IN: OIL
SU:
01/26/2000 14:50 EST prnewswire.com |
