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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Telemarker who wrote (61314)	3/2/2000 4:07:00 PM
From: The Ox	Respond to of 95453

DCR Assigns 'A- Rating to Anadarko Petroleum's Convertible Debenture CHICAGO, March 2 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has assigned a 'A-' (Single-A-Minus) rating to Anadarko Petroleum Corporation's proposed 20-year, zero coupon convertible debt issuance. At the same time, DCR reaffirmed Anadarko's senior unsecured debt rating of 'A-' (Single-A-Minus), preferred stock rating of 'BBB+' (Triple-B-Plus) and its commercial paper rating of 'D-1-' (D-One-Minus). The Rating Outlook is Stable. The zero coupon convertible debentures were priced with a yield to maturity of 3.50 percent and an initial conversion premium of 40 percent. This will result in gross proceeds to the company of approximately $300 million before any exercise of an over- allotment option. Each debenture was issued at a price of $499.60 and accrues interest at 3.50 percent to reach a principal amount of $1,000 at maturity. Anadarko will pay no interest prior to maturity, and has the right to call the debentures after three years for a price equal to the issue price plus accrued interest to the date of redemption. The debentures are convertible at the option of the debenture holder into shares of Anadarko stock at a fixed ratio per debenture. Presently, cash and coverage levels are somewhat weak for the rating. Nevertheless, Anadarko's strong reserve base and proven ability to add reserves through the drillbit at economic costs support the rating. Going forward, substantial production increases, beginning in 2001, should return cash flow and coverage ratios to a level more reflective of the current rating. DCR anticipates that coverage, as measured by EBITDA/interest, should be above 5.5 times for 2000 and then increase to 8.0 times or above for 2001 and beyond. Anadarko Corporation is one of the world's largest independent natural gas and crude oil exploration and production companies. The company's drilling programs focus on major geologic basins onshore and offshore, both in the United States and overseas. Anadarko's proved reserves are approximately 991 MMboe, which represent an approximate 20-year proved reserve life. The company's average worldwide finding cost is $3.53 per boe. DCR is a leading global rating agency with 34 local market offices providing ratings and research on debt issues and insurance claims paying ability in more than 50 countries. For additional research on Anadarko Petroleum, visit DCR's Web site at dcrco.com (Quick Search: Anadarko Petroleum). DCR's research is also available on Bloomberg at DCR<GO> and First Call's BondCall Direct/Research Direct at firstcall.com, as well as through other third-party providers. SOURCE Duff & Phelps Credit Rating Co. CO: Anadarko Petroleum Corporation ST: Illinois IN: OIL UTI SU: RTG 03/02/2000 15:38 EST prnewswire.com