Anadarko Exits 2Q with Exploration Success in GOM
Anadarko has announced a second-quarter 2009 net loss from continuing operations attributable to common stockholders of $224 million, or $0.47 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items decreased the net loss by approximately $39 million, or $0.09 per share (diluted) on an after-tax basis.(1) Cash flow from continuing operations in the second quarter of 2009 was $1.228 billion, and discretionary cash flow totaled $1.545 billion.(2)
SECOND-QUARTER 2009 HIGHLIGHTS
- Achieved 4-percent sequential volume growth over first-quarter 2009
- Reduced lease operating expense per barrel of oil equivalent (BOE) by 12 percent from first-quarter 2009
- Announced a deepwater discovery in the Gulf of Mexico
- Strengthened liquidity by effectively accessing the capital markets
"The strength of Anadarko's portfolio was clearly demonstrated during the quarter, as we delivered record sales volumes (from retained properties) and improved lease operating expenses relative to both the prior-year period and the first quarter of 2009," Anadarko Chairman and CEO Jim Hackett said. "We are continuing to drive down costs to better align them with the current commodity-price environment. I am also very pleased with the excellent performance of our exploration teams, which have announced six deepwater discoveries so far this year. Additionally, during the quarter we continued to prudently manage our balance sheet by accessing the capital markets to substantially strengthen our liquidity position."
Last week, Anadarko announced the Vito discovery in the Gulf of Mexico in Mississippi Canyon block 984. The well encountered more than 250 net feet of oil pay, and the partners are currently evaluating the data and timing of future appraisal activity. During the second quarter, Anadarko announced the Samurai discovery in the Gulf of Mexico in Green Canyon block 432, which is 12 miles north of the company's Marco Polo facility. The discovery well encountered more than 120 feet of net oil pay. The company plans to drill an appraisal well within the next year. These discoveries add to the deepwater discoveries announced during the first quarter of this year at the Heidelberg and Shenandoah wells in the Gulf of Mexico and the Tweneboa and Mahogany Deep discoveries offshore Ghana. Anadarko plans to drill several significant appraisal wells and at least six high-impact exploration wells during the remainder of 2009, with each exploration well targeting resources of more than 100 million BOE.
"Anadarko's exploration success," continued Hackett, "coupled with our strong operational performance and the advancement of our three mega projects, including the recent approval of the Jubilee Phase I Plan of Development and Unitization Agreement by the Ghanaian government, continues to deliver excellent value today and positions the company to continue to do so in the future."
Second-quarter 2009 sales volumes of natural gas, crude oil and natural gas liquids totaled 56 million BOE, or 617,000 BOE per day, comprised of natural gas sales volumes that averaged 2.336 billion cubic feet per day, oil sales volumes that averaged 182,000 barrels per day and natural gas liquids sales volumes that averaged 46,000 barrels per day.
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