Second-quarter 2006 income from continuing operations totaled $663 million, or $1.43 per share (diluted), compared with $.92 per share (diluted) in the 2005 second quarter. Adjustments to estimated future tax liabilities contributed $69 million, or $.15 per share (diluted), to the 2006 second-quarter results from continuing operations.
Cash flow from operating activities was $957 million and discretionary cash flow totaled $1.21 billion in the second quarter.
“Anadarko's very strong performance in the second quarter reinforces our conviction regarding the company's strategy and potential,” Anadarko Chairman, President and CEO Jim Hackett said. “Our investments in the deepwater Gulf of Mexico and in U.S. onshore tight gas sands and coalbed methane plays are delivering results. These are three core areas that will become an even greater focus for the company in the future through the pending acquisitions of Kerr-McGee and Western Gas Resources.”
Regarding the status of the acquisitions, shareholder meetings to approve the transactions have been scheduled, with an Aug. 10 vote set by Kerr-McGee Corp. and an Aug. 23 vote set by Western Gas Resources, Inc.. Each transaction is expected to close immediately after receipt of shareholder approval, subject to approval by the appropriate regulatory authorities.
“We are working to complete the transactions expeditiously and are preparing for the integration of the three companies,” Hackett said. “Some initiatives cannot begin until closing, but we are moving forward on several fronts, as evidenced by our decision to sell Anadarko's Canadian subsidiary and by the pending divestiture of our Bear Head LNG project. By year-end, investors should have a much clearer picture of the restructured, post-acquisition Anadarko and its excellent potential for growth and returns.”
Second-quarter sales volumes of natural gas, crude oil and natural gas liquids totaled 41 million barrels of oil equivalent (BOE), or 447,000 BOE per day. Natural gas sales volumes averaged 1,375 million cubic feet per day, at an average price of $6.26 per thousand cubic feet. Oil sales volumes in the second quarter averaged 177,000 barrels per day, with an average price of $64.54 per barrel. Natural gas liquids sales volumes averaged 41,000 barrels per day, at an average price of $41.29 per barrel.
Second-quarter sales volumes from continuing operations totaled 36 million BOE, or 392,000 BOE per day, up 5 percent from the prior-year period and 7 percent from the 2006 first quarter.
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