Anadarko Posts Q2 Net Income of $23 Million

Anadarko Petroleum Corporation announced second-quarter 2008 net income available to common stockholders totaled $23 million, or $0.05 per share (diluted). Income from continuing operations totaled $16 million, or $0.03 per share (diluted). The net income results include certain items affecting comparability that are typically excluded by the investment community in published estimates. In total, these items reduced net income by approximately $815 million, or $1.73 per share (diluted) on an after-tax basis. Cash flow from continuing operations in the second quarter of 2008 was $438 million, and discretionary cash flow totaled $2.31 billion. Capital expenditures for the quarter were approximately $1.23 billion.

"In addition to generating more than $1 billion in free cash flow, we are very pleased with our production volumes for the quarter," Anadarko Chairman and CEO Jim Hackett said. "We lost more than eight weeks of production from Independence Hub, and we still met our guidance for the quarter. Factoring in the additional four million BOE (barrels of oil equivalent) that would have been produced had the Hub been fully operational; we would have again shown solid sequential growth relative to the prior quarter's outstanding results. Our strong quarterly operational performance is a reflection of the depth of Anadarko's portfolio and our ability to grow organically. We are confident that we will achieve our full-year production guidance of 207 million to 212 million BOE."

Additionally, the firm achieved record daily production in the Greater Natural Buttes and the Powder River Basin; expanded West Africa exploration program and increased estimated recoverable resource range of Jubilee; moved the Deepwater Millennium drillship to Brazil; and spud first operated pre-salt test and initiated testing of prospects in the Marcellus Shale play.