"The 2.1 billion BOE of net risked resource potential we've identified is in addition to Anadarko's year-end 2004 proved reserves of 2.4 billion BOE. About half of these potential new resources are related to properties we are already developing," said Jim Hackett, Anadarko President and CEO. "The remainder are attributable to exploration prospects in our portfolio, including a substantial number of unconventional resource play opportunities onshore North America."
In the past 12 months, the company has successfully restructured its asset base, sold approximately $3.5 billion (pre-tax) of non-strategic properties, retired $1.4 billion in debt and repurchased $1.5 billion of common stock.
"Last June, we set an aggressive game plan, and today, we're continuing to deliver on that plan," Hackett said. "We have met or exceeded our goals in terms of restructuring-related divestiture timing and proceeds, and exercised the financial discipline we promised by retiring debt, repurchasing shares and otherwise strengthening our balance sheet. We've also met our production, cost, and other operational guidance for five consecutive quarters.
"In the midst of a major restructuring of the company, we continued to deliver very competitive drillbit-driven reserve replacement and finding and development costs," Hackett added.
Some recent operational highlights include:
Due to the success in advancing its refocused strategy, Anadarko is adding $300 million to its 2005 capital expenditures for new long-term strategic opportunities in three major areas: U.S. onshore lease acquisition and delineation drilling; a coalbed methane (CBM) water pipeline in Wyoming to make existing operations more economic and to enhance the company's competitive position; and additional deepwater Gulf of Mexico exploration and development. The company now estimates 2005 capital investment of $3.1 billion - $3.3 billion.
"Our success over the past year demonstrates our ability to deliver on our growth projections through 2009, including projected 5 to 9% annual production growth, 4 to 6% annual reserve growth, and 6 to 10% annual cash flow growth," Hackett said. "We're also positioning ourselves for growth beyond 2009 by capturing and advancing new projects in the deepwater Gulf of Mexico, Indonesia, Qatar, the Georgia Black Sea and North and West Africa as well as our LNG project in Canada."
Most Popular Articles