Anadarko Reports Higher Earnings for Third Quarter;
Continued Strength in Commodity Prices Drives Positive Results
HOUSTON, Oct. 27 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today announced financial and operating results for the third
quarter and first nine months of 1999.
For 1999's third quarter, Anadarko reported net income available to common
stockholders of $18.8 million, or 15 cents per share (diluted), on
$179.9 million of revenues. By comparison, during the same period in 1998,
the company had a net loss of $2.3 million, or two cents per share, on
$140.2 million of revenues. Anadarko attributed the higher earnings in the
third quarter of 1999 to significantly higher commodity prices.
"Our financial position is dramatically improved compared to the beginning
of the year," said Robert J. Allison, Jr., Chairman and Chief Executive
Officer for Anadarko. "The stronger commodity prices that have led the way
should be the catalyst for continued improvement in the fourth quarter and in
the year 2000."
The company's average oil price for the third quarter of 1999 was
$19.32 per barrel, up 69 percent from $11.46 per barrel a year ago. In the
third quarter of 1999, Anadarko's oil production averaged 30,000 barrels of
oil per day (BOPD), off 5 percent from an average of 32,000 BOPD in the third
quarter of 1998.
In 1999's third quarter, Anadarko's natural gas production averaged
456 million cubic feet per day (MMcf/d), down 8 percent from 497 MMcf/d during
the same period a year ago. The company's wellhead price for natural gas was
$2.40 per thousand cubic feet (Mcf) for the third quarter of 1999, up
32 percent from $1.82 per Mcf a year ago.
During the third quarter of 1999, Anadarko's natural gas liquids (NGLs)
sales volumes averaged 19,000 barrels per day, level with 1998's corresponding
period. The company's average price for NGLs was $14.76 per barrel in 1999's
third quarter, compared to $9.44 per barrel a year ago, representing a
56 percent increase.
"We expect 1999 to be a record year for production," Allison added. "With
the resumption of full operations in Algeria sooner than anticipated after the
repair of an injection facility, and with gas production from our East Texas
Bossier Play running ahead of schedule, total volumes for the year should be
about 4 percent higher than in 1998. Combine that with the improvement in
commodity prices and we expect our cash flows to be about twice as high as
what we thought at the beginning of the year. As a result, we are well
positioned to capitalize on our broad portfolio of drilling and development
projects that should add long-term value for stockholders."
First Nine Months
For the nine-month period ending September 30, 1999, Anadarko reported net
income available to common stockholders of $3.7 million, or 3 cents per share
(diluted), on $477.8 million of revenues. The year-to-date results reflect a
non-cash charge in the first quarter of 1999 of $20 million before taxes
($13 million after taxes) related to the remaining operations in the company's
Eritrean exploration program. By comparison, through the first nine months of
1998, Anadarko reported net income of $7.5 million, or 6 cents per share
(diluted), on $424.7 million of revenues.
Excluding the international impairment, net income available to common
stockholders for the first nine months of 1999 was $16.7 million, or 13 cents
per share (diluted). In addition to the charge for Eritrea, Anadarko said its
earnings for the first nine months of 1999 were impacted by the increase in
Algeria oil production volumes and higher commodity prices, partially offset
by a decline in gas production volumes, higher interest expense and higher
preferred stock dividends, compared to the same period in 1998.
Year-to-date September 30, 1999 Anadarko produced 36.8 million energy
equivalent barrels, up 5 percent from 34.9 million barrels for the same period
last year. The increase was attributed to oil production from the company's
operations in Algeria.
Anadarko's oil production for the first nine months of 1999 rose
34 percent to an average of 39,000 BOPD, up from 29,000 BOPD in 1998's
corresponding period. The company's average oil price for the first nine
months of 1999 was $14.47 per barrel, up 21 percent from $11.93 per barrel for
the same period in 1998.
In 1999's first nine months, Anadarko's natural gas production averaged
468 MMcf/d, down 3 percent compared to 483 MMcf/d for the corresponding period
in 1998. The company's wellhead price for natural gas was $1.97 per Mcf for
the first nine months of 1999, up 2 percent over $1.94 per Mcf a year ago.
During the first nine months of 1999, Anadarko's NGLs sales volumes
averaged 18,000 barrels per day, down slightly from 19,000 barrels per day in
1998's corresponding period. The company's average price for NGLs for year-
to-date September 30, 1999 was $11.84 per barrel or 11 percent higher than the
average of $10.65 per barrel for the first nine months of 1998.
Comparative financial highlights follow
(amounts in millions, except per share data):
Quarter Ended September 30
1999 1998
Net income (loss) available to common
stockholders $18.8 $(2.3)
Earnings (loss) per share - diluted $0.15 $ (0.02)
Revenues $179.9 $ 140.2
Average common shares outstanding 127.4 120.1
Nine Months Ended September 30
1999 1998
Net income available to common
stockholders $3.7(A) $7.5
Earnings per share - diluted $0.03(A) $0.06
Revenues $477.8 $424.7
Average common shares outstanding. 124.4 120.0
(A) Includes a non-cash charge of $20 million before taxes ($13 million
after taxes) related to the company's remaining operations in
Eritrea. Excluding the international impairment, net income was
16.7 million or $0.13 per share (diluted).
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
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.
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Summary Financial Information September 30 September 30
and shares in millions 1999 1998 1999 1998
Revenues
Gas sales $98.2 $86.3 $259.8 $267.4
Oil and condensate sales 55.1 35.0 156.7 98.0
Natural gas liquids and other 26.6 18.9 61.3 59.3
Total 179.9 140.2 477.8 424.7
Costs and Expenses
Operating expenses 35.2 41.8 103.7 120.8
Administrative and general 24.6 22.0 72.3 64.9
Depreciation, depletion
and amortization 51.7 51.6 162.2 151.3
Other taxes 9.7 9.1 27.4 28.4
Impairments related to
international properties --- --- 20.0 ---
Total 121.2 124.5 385.6 365.4
Operating Income 58.7 15.7 92.2 59.3
Interest Expense 17.9 15.0 55.0 41.1
Income before Income Taxes 40.8 0.7 37.2 18.2
Income Taxes 19.3 0.3 25.4 6.4
Net Income $21.5 $0.4 $11.8 $11.8
Preferred Stock Dividends 2.7 2.7 8.1 4.3
Net Income (Loss) Available to
Common Stockholders $18.8 $(2.3) $3.7 $7.5
Per Common Share
Net income (loss) - basic $0.15 $(0.02) $0.03 $0.06
Net income (loss) - diluted $0.15 $(0.02) $0.03 $0.06
Dividends $0.05 $0.05 $0.15 $0.1375
Average Number of Shares
Outstanding 127.4 120.1 124.4 120.0
Cash Flow from Operations
before Changes in Assets
and Liabilities
Net income $21.5 $0.4 $11.8 $11.8
Depreciation, depletion and
amortization 51.7 51.6 162.2 151.3
Amortization of restricted
stock 0.5 0.3 1.2 0.8
Deferred U.S. income taxes 14.1 (1.1) 8.8 4.9
Impairments related to
international properties --- --- 20.0 ---
Total $87.8 $51.2 $204.0 $168.8
Capital Expenditures
Capital spending $144.7 $175.2 $349.9 $587.1
Capitalized interest 5.6 6.1 16.6 18.4
Capitalized overhead 20.3 23.4 65.1 66.9
Total $170.6 $204.7 $431.6 $672.4
Capitalization
Long-term debt $1,405.3 $1,225.0
Stockholders' equity 1,507.8 1,317.8
Total $2,913.1 $2,542.8
Capitalization Ratios
Long-term debt 48% 48%
Stockholders' equity 52% 52%
Total Assets $3,833.8 $3,497.0
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Volumes and Prices September 30 September 30
1999 1998 1999 1998
Natural Gas
Volumes, billion cubic feet 41.9 45.7 127.9 131.9
Average daily volumes, million
cubic feet per day 456 497 468 483
Price per thousand cubic feet $2.40 $1.82 $1.97 $1.94
Crude Oil and Condensate
United States
Volumes, thousand barrels 1,967 2,474 6,458 7,284
Average daily volumes, thousand
barrels per day 21 27 24 27
Price per barrel $ 18.62 $ 11.17 $ 14.16 $ 11.86
Algeria
Volumes, thousand barrels 818 466 4,108 587
Average daily volumes,
thousand barrels per day 9 5 15 2
Price per barrel $ 20.99 $ 12.96 $ 14.97 $ 12.82
Total
Volumes, thousand barrels 2,785 2,940 10,566 7,871
Average daily volumes,
thousand barrels per day 30 32 39 29
Price per barrel $ 19.32 $ 11.46 $ 14.47 $ 11.93
Natural Gas Liquids
Volumes, thousand barrels 1,787 1,788 4,949 5,062
Average daily volumes,
thousand barrels per day 19 19 18 19
Price per barrel $ 14.76 $9.44 $ 11.84 $ 10.65
Total Energy Equivalent Barrels
Volumes, million EEBs 11.6 12.4 36.8 34.9
SOURCE Anadarko Petroleum Corporation
CO: Anadarko Petroleum Corporation
ST: Texas
IN: OIL
SU: ERN
10/27/1999 13:01 EDT prnewswire.com |
