Anadarko Continues Earning Success in Third-Quarter 2007

Anadarko (NYSE:APC) announced third-quarter 2007 net income available to common stockholders totaled $503 million, or $1.07 per share (diluted). Income from continuing operations totaled $516 million, or $1.10 per share (diluted). All financial information included in this news release reflects Anadarko's recent conversion to the successful efforts method of accounting.

On an after-tax basis, these results include gains on asset divestitures of $219 million, or $.47 per share; a restructuring charge of $17 million, or $.04 per share, related to both lease operating costs and general and administrative expenses; legal accruals totaling approximately $14 million, or $.03 per share; unrealized losses on commodity derivatives of $21 million, or $.04 per share, offset by an interest-rate-swap gain of $20 million, or $.04 per share; and realized gains on commodity derivatives of $85 million, or $.18 per share.

Cash flow from continuing operations in the third quarter of 2007 was $884 million and discretionary cash flow totaled $718 million.(1)

In the 2006 third quarter, net income available to common stockholders was $1.39 billion, or $2.99 per share (diluted), while income from continuing operations totaled $1.31 billion, or $2.83 per share (diluted).

'"Our asset base continues to demonstrate repeatable and predictable characteristics that, along with exploration success, are the foundation of our value-creation strategy,'" Anadarko Chairman, President and CEO Jim Hackett said. '"We met our production guidance, despite facing shut-ins of approximately 700,000 barrels of oil equivalent (BOE) as a result of infrastructure disruptions in the Rockies - most of which were natural gas. Also during the quarter, Independence Hub came on production and is performing very well as we ramp up toward the Hub's capacity of 1 billion cubic feet per day.

'"Based on our performance, we are reaffirming the midpoint of our production guidance of 191 million BOE, while narrowing the range of our full-year 2007 guidance to 190 million to 192 million BOE from our retained properties,'" added Hackett. '"We also have additional confidence in our ability to continue to deliver 5 to 9 percent production growth from our retained properties in 2008 and beyond.'"

Third-quarter 2007 sales volumes of natural gas, crude oil and natural gas liquids totaled 47 million BOE, or 510,000 BOE per day. Third-quarter 2007 natural gas sales volumes averaged 1.64 billion cubic feet per day, at an average price of $5.78 per thousand cubic feet. Oil sales volumes in the third quarter averaged 198,000 barrels per day, at an average price of $69.25 per barrel. Natural gas liquids sales volumes averaged 39,000 barrels per day, at an average price of $48.39 per barrel.


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