Anadarko: 2009 'Sets the Stage' for Continued Success
Anadarko Petroleum announced fourth-quarter 2009 net income from continuing operations attributable to common stockholders totaled $229 million, or $0.46 per share (diluted), for the quarter ending Dec. 31, 2009. These results include certain items affecting comparability that are typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $208 million, or $0.42 per share (diluted), on an after-tax basis. Cash flow from continuing operations in the fourth-quarter of 2009 was $1.10 billion, and discretionary cash flow totaled $869 million.
For the year ended Dec. 31, 2009, Anadarko reported a net loss from continuing operations attributable to common stockholders of $135 million, or $0.28 per share (diluted). Full-year 2009 cash flow from continuing operations was $3.93 billion, and discretionary cash flow totaled $4.36 billion.
- Increased sales volumes by 7 percent year-over-year, while spending 35-percent less on nearterm projects
- Reduced lease operating expense (LOE) per unit by more than 20 percent year-over-year
- Added 314 million barrels of oil equivalent (BOE) of proved reserves before price revisions and divestitures, which equates to replacing 140 percent of production
- Achieved a 50-percent success rate in the 2009 global deepwater exploration program
- Discovered nearly 360 million BOE of net resources from 2009 exploration activities
- Advanced three sanctioned mega projects on time and on budget
"2009 was a very successful year in advancing our strategy and illustrating the high quality of our portfolio. We feel 2009 has set the stage for continuing success in 2010 and beyond," Anadarko Chairman and CEO, Jim Hackett said. "The results demonstrated the ability of our operating teams to grow our production and reserve base, prudently manage our capital spending, reduce costs, improve drilling efficiencies and move our sanctioned mega projects closer to first production. In addition, our 2009 worldwide drilling program resulted in nine significant deepwater discoveries and four successful deepwater appraisal wells that de-risked our portfolio and added to a growing list of future mega projects. When combined with the growing success of our U.S. onshore shale plays, we are confident that future years will see a material increase in production and reserve additions."
Full-year 2009 sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled 220 million BOE, or 604,000 BOE per day, representing a 7-percent increase over full-year 2008 sales volumes of 206 million BOE. Fourth-quarter 2009 sales volumes of natural gas, crude oil and NGLs totaled 53 million BOE, or 583,000 BOE per day.
Anadarko added 314 million BOE of proved reserves in 2009, before the effects of price revisions and divestitures, and incurred costs of approximately $4.66 billion associated with its oil and natural gas exploration and development activities. The company estimates its proved reserves at year-end 2009 totaled 2.3 billion BOE. Anadarko ended 2009 with approximately 70 percent of its reserves in the proved, developed category and approximately 30 percent categorized as proved, undeveloped. At year-end 2009, Anadarko’s product mix of proved reserves was made up of approximately 56 percent natural gas and 44 percent liquids.
2009 WORLDWIDE DRILLING AND DEVELOPMENT HIGHLIGHTS
Anadarko announced nine deepwater discoveries in three of the most attractive deepwater plays in the world in 2009. These results include five subsalt discoveries in the Gulf of Mexico, three in the Cretaceous Fan play offshore West Africa and one in the pre-salt play offshore Brazil.
In addition to its 50-percent success rate in deepwater exploration during 2009, Anadarko also continued an aggressive appraisal program that extended the potentially productive area of the Jubilee field in Ghana beyond its current unit boundaries. In Brazil, the successful Wahoo #2 pre-salt appraisal well confirmed the main pay section of the field extends at least five miles to the north and down-dip of the discovery well. Already in 2010, Anadarko has announced a successful appraisal of the Tweneboa discovery offshore Ghana, with more than 105 net feet of pay over a large areal extent, and a successful appraisal of the Lucius discovery in the Gulf of Mexico that encountered more than 600 net feet of pay and confirmed that this is a major oil discovery.
Anadarko continues to advance its current mega projects in Ghana, the Gulf of Mexico and Algeria and expects each project to remain on schedule and within budget. The Jubilee field in Ghana is expected to start producing late this year, and in total, the three projects are expected to add more than 60,000 BOE per day net to Anadarko by 2012. In addition, the company continues to develop its fairway positions and ramp up production in the Marcellus, Eagleford and Haynesville shale plays onshore in the United States. Anadarko also expanded its position in the Marcellus Shale during the fourth-quarter of 2009 to approximately 350,000 net acres from about 315,000 net acres at the end of the third quarter. The company also recently announced a transaction to add approximately 80,000 net acres to its existing 180,000 net acres in the Maverick Basin, with a focus on the liquids-rich Eagleford Shale.
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