Anadarko Announces Quarterly Results
Anadarko Petroleum Corporation announced a first-quarter 2009 net loss attributable to common stockholders of $338 million, or $0.73 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by approximately $96 million, or $0.20 per share (diluted) on an after-tax basis.(1) Cash flow from continuing operations in the first quarter of 2009 was $527 million, and discretionary cash flow totaled $741 million.(2)
First Quarter 2009 Highlights
- Announced four significant deepwater discoveries
- Achieved sequential volume growth over fourth-quarter 2008
- Recognized further improvements in cost structure and drilling efficiencies
- Issued bonds to refinance near-term debt and supplement liquidity
"Our portfolio yielded very good operating results during the quarter; however, we continue to face a challenging period until we see better alignment between costs and commodity prices," Anadarko Chairman and CEO Jim Hackett said. "We prudently scaled back our near-term capital spending and still improved sales volumes by approximately 2 million barrels from the fourth quarter of 2008. Toward the end of the second quarter we expect to resume production of approximately 30,000 net BOE (barrels of oil equivalent) per day, currently shut-in due to the lingering effects of hurricane-related outages to downstream infrastructure in the Gulf of Mexico. We remain on track to achieve our 2009 production target of between 208 million and 212 million BOE."
"We also had an outstanding quarter with regard to exploration success, which reinforces our commitment to invest in this program. We announced four high-impact discoveries during the quarter – the Heidelberg and Shenandoah prospects in the deepwater Gulf of Mexico and the Tweneboa and Mahogany Deep prospects in West Africa. Additionally, we achieved important milestones in the development of our three mega projects, enabling us to effectively manage costs and maintain schedules for first production."
Anadarko and its partners continue to move forward with the Phase I development of the Jubilee field. The Ghanaian government is currently reviewing the field's Plan of Development, and Jubilee remains on track to deliver first production in late 2010. In the deepwater Gulf of Mexico, preparations are under way to begin development drilling in the third quarter at the company's Caesar/Tonga complex, with first production anticipated in early 2011. In Algeria, Anadarko and its partners have awarded the key contracts for the development of the El Merk project, with production expected to commence in 2012.
"The advancement of these major development projects and our exploration successes continue to position Anadarko for material future reserve and production growth. Our financial position, improving cost structure and drilling efficiencies are allowing us to manage through the current market environment with a focus on future growth," Hackett added.
First-quarter 2009 sales volumes of natural gas, crude oil and natural gas liquids totaled 54 million BOE, or 600,000 BOE per day. First-quarter 2009 natural gas sales volumes averaged 2.3 billion cubic feet per day. Oil sales volumes in the first quarter averaged 174,000 barrels per day and natural gas liquids sales volumes averaged 40,000 barrels per day.
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