Anadarko Profit Up 25%
Anadarko Petroleum Corporation (NYSE: APC) announced first quarter 2005 net income available to common shareholders of $490 million, or $2.05 per share (diluted), on revenues of $1.53 billion.
Cash flow from operating activities totaled $936 million in the first quarter and cash flow from operations before changes in assets and liabilities totaled $895 million.(1)
"Anadarko is executing on its strategy to actively develop several large discoveries, grow our unconventional resource plays in North America and explore in high-potential basins around the world," said Anadarko President and CEO Jim Hackett. "We've taken the tough steps to reshape our portfolio, which today is structured for profitable and sustainable growth.
"Anadarko is a different company than we were this time a year ago," Hackett said. "Our asset sales and strategic realignment have us operating from a smaller, more efficient base, which is reflected in the results we achieved this quarter. While volumes were down from last year due to the asset sales, they slightly exceeded the high end of our guidance for the quarter and actually rose about 10 percent, excluding the production from the properties we sold. Also, revenues increased and expenses decreased, providing higher net income. The improvement was further magnified by our stock repurchase program. Altogether, Anadarko delivered a 32 percent increase in diluted earnings per share on less than a 5 percent increase in revenues."
The company continued its share repurchase program during the first quarter and bought 2.6 million shares of outstanding common stock for approximately $200 million.
During the first quarter of 2005, sales volumes totaled 41 million barrels of oil equivalent (BOE), or 455,000 BOE per day. Natural gas sales volumes averaged 1,454 million cubic feet (MMcf) per day and Anadarko's average realized natural gas price was $5.66 per thousand cubic feet (Mcf). Oil sales volumes in the first quarter were 177,000 barrels per day. The company's average realized oil price was $42.18 per barrel.
First quarter 2004 net income was $392 million, or $1.55 per share
(diluted), on revenues of $1.46 billion. Cash flow from operating
activities for the same period was $885 million. Cash flow from
operations before changes in assets and liabilities for the first
quarter 2004 totaled $944 million.
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