No record, but more good earnings from APC. Production only increased 2%.
Anadarko Posts Strong First Quarter Earnings - Continued Strength in Commodity Prices Helps Push Earnings to 31 Cents Per Share -
HOUSTON, Apr 27, 2000 /PRNewswire via COMTEX/ -- Anadarko Petroleum Corporation
(NYSE: APC) today reported substantially higher financial and operating results
for the first quarter of 2000. Earnings were 31 cents per share (basic) compared
to a loss of 19 cents per share in the first quarter of 1999.
"Our strong first quarter results reflect the tremendous recovery in commodity
prices, along with a modest increase in our production volumes," said Robert J.
Allison, Jr., Anadarko Chairman and Chief Executive Officer. "We anticipated
this recovery in oil and gas prices, which has resulted, at least in part, from
last year's industry-wide slashing of capital expenditures. With demand for
hydrocarbons undiminished, this inevitably helped lead to tighter supplies and
higher prices.
"We'll take continued advantage of these higher prices with increasing natural
gas production from the Bossier Play in East Texas and with initial gas
production from the Hickory Field in the Gulf of Mexico. We'll also produce more
oil -- with initial production both from the Alpine Field in Alaska and the
Tanzanite Field in the Gulf of Mexico.
For 2000's first quarter, Anadarko reported net income available to common
stockholders of $39.1 million on revenues of $247 million. By comparison, during
1999's first quarter, Anadarko had a net loss of $23.l million on $136 million
of revenues. The loss in the first quarter of 1999 reflected a non-cash charge
of $20 million before taxes ($12.8 million after taxes) related to operations in
Eritrea. Excluding the foreign impairment, the company's net loss for the first
quarter of 1999 was $10.3 million, or 8 cents per share (basic).
The improved revenues and earnings in the first three months of 2000 compared to
the same period a year ago were due primarily to the significant improvement in
commodity prices, partially offset by higher operating expenses, administrative
and general costs, and interest expense.
First Quarter Production
During the first quarter of 2000, Anadarko produced 13.2 million energy
equivalent barrels, up 2% from 12.9 million barrels in 1999's same period.
Anadarko's oil production for the first three months of 2000 averaged 42,000
barrels of oil per day, compared to 44,000 barrels per day in 1999's first
quarter. Anadarko's average oil price for the first quarter of 2000 was $26.34
per barrel, up nearly 150% from $10.60 per barrel a year ago.
During 2000's first quarter, Anadarko's natural gas production was essentially
level with 1999's same period. Gains in production from the Bossier gas play
offset production declines in the Gulf of Mexico. The company's wellhead price
for natural gas was $2.46 per thousand cubic feet (Mcf) for the first three
months of 2000, up 55% from $1.59 per Mcf a year ago.
In the first three months of 2000, the company's natural gas liquids (NGLs)
sales volumes averaged 22,000 barrels per day, a 22% gain from 18,000 barrels
per day in 1999's corresponding quarter. The company's average price for NGLs
was $20.73 per barrel in 2000's first quarter, up 141% from $8.60 per barrel in
1999's first three months.
First Quarter Operations Highlights
During the first quarter of 2000, Anadarko continued to post excellent results
from its Bossier Play in East Texas. The company's net natural gas production
from the Bossier Play was 135 million cubic feet of gas per day at the end of
March 2000, up from 38 million cubic feet per day at the end of the first
quarter 1999.
In Algeria, work continued on a major expansion project that will boost
production from the company's operations at the Hassi Berkine South and Hassi
Berkine Fields in 2001 and early 2002. Anadarko and its partners also are moving
ahead with development plans for the Ourhoud Field, with first production also
scheduled in 2002.
In Alaska, development facilities for the Alpine Field on the North Slope are
nearing completion. Initial production of 40,000 BOPD (gross) is expected in the
third quarter.
Work also continued on the production platforms for the Tanzanite and Hickory
Fields in the Gulf of Mexico. The platforms are scheduled for installation in
late summer 2000. Regarding its operations elsewhere in the Gulf of Mexico,
Anadarko recently announced the Marco Polo discovery at Green Canyon Block 608.
The discovery well found 320 feet of pay above salt. Additional drilling along
with sidetracking operations will be used to further evaluate this discovery.
Comparative financial highlights follow (amounts in millions, except per share
data):
Quarter Ended March 31
2000 1999
Net income (loss) available to common
stockholders $39.1 $(23.1)*
Earnings (loss) per share - basic $0.31 $(0.19)*
Earnings (loss) per share - diluted $0.30 $(0.19)*
Revenues $247.1 $136.4
Average common shares outstanding 128.0 120.5
* 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 $10.3 million, or
$0.08 per share (diluted).
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.
For more information about Anadarko's worldwide operations, visit the company's
web site at www.anadarko.com.
Anadarko Petroleum Corporation
Quarter Ended
Summary Financial Information March 31
$ and shares in millions 2000 1999
Revenues
Gas sales $ 102.1 $ 77.8
Oil and condensate sales 101.8 43.6
Natural gas liquids and other 43.2 15.0
Total 247.1 136.4
Costs and Expenses
Operating expenses 43.0 34.1
Administrative and general 30.1 24.4
Depreciation, depletion and amortization 57.3 56.5
Other taxes 11.3 9.3
Impairments related to international properties --- 20.0
Total 141.7 144.3
Operating Income (Loss) 105.4 (7.9)
Interest Expense 21.1 18.6
Income (Loss) before Income Taxes 84.3 (26.5)
Income Taxes 42.5 (6.1)
Net Income (Loss) $ 41.8 $ (20.4)
Preferred Stock Dividends 2.7 2.7
Net Income (Loss) Available to Common
Stockholders $ 39.1 $ (23.1)
Per Common Share
Net income (loss) - basic $ 0.31 $ (0.19)
Net income (loss) - diluted $ 0.30 $ (0.19)
Dividends $ 0.05 $ 0.05
Average Number of Shares Outstanding 128.0 120.5
Cash Flow from Operations before Changes in
Assets and Liabilities
Net income (loss) $41.8 $ (20.4)
Depreciation, depletion and amortization 57.3 56.5
Amortization of restricted stock 0.4 0.3
Interest expense - zero coupon debentures 0.8 ---
Deferred U.S. income taxes 24.6 (10.7)
Impairments related to international properties --- 20.0
Total $ 124.9 $ 45.7
Capital Expenditures
Capital spending $ 156.5 $ 84.3
Capitalized interest 5.1 5.5
Capitalized overhead 22.4 22.0
Total $ 184.0 $ 111.8
Capitalization
Long-term debt $1,573.2 $1,560.8
Stockholders' equity 1,586.6 1,234.5
Total $3,159.8 $2,795.3
Capitalization Ratios
Long-term debt 50% 56%
Stockholders' equity 50% 44%
Total Assets $4,219.8 $3,657.8
Anadarko Petroleum Corporation
Quarter Ended
Volumes and Prices March 31
2000 1999
Natural Gas
Volumes, billion cubic feet 44.3 44.0
Average daily volumes, million cubic feet per day 486 489
Price per thousand cubic feet $ 2.46 $ 1.59
Crude Oil and Condensate
United States
Volumes, thousand barrels 1,847 2,324
Average daily volumes, thousand barrels per day 20 26
Price per barrel $ 24.72 $ 9.92
Algeria
Volumes, thousand barrels 1,967 1,644
Average daily volumes, thousand barrels per day 22 18
Price per barrel $ 27.87 $ 11.57
Total
Volumes, thousand barrels 3,814 3,968
Average daily volumes, thousand barrels per day 42 44
Price per barrel $ 26.34 $ 10.60
Natural Gas Liquids
Volumes, thousand barrels 2,006 1,632
Average daily volumes, thousand barrels per day 22 18
Price per barrel $ 20.73 $ 8.60
Total Energy Equivalent Barrels
Volumes, million EEBs 13.2 12.9 |
