==============================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended: June 30, 1994
Commission File Number: 1-8968
_____________________
ANADARKO PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 76-0146568
(State or other jurisdic- (I.R.S. Employer Iden-
tion of incorporation tification No.)
or organization)
17001 NORTHCHASE DRIVE, HOUSTON, TEXAS 77060
(Address of executive offices) (Zip Code)
(713) 875-1101
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
The number of shares outstanding of each of the registrant's classes of
common stock as of July 29, 1994 is shown below:
Number of Shares
Title of Class Outstanding
Common Stock, $0.10 par value 58,787,674
==============================================================================
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
thousands 1994 1993 1994 1993
Revenues
Gas sales $ 77,435 $ 71,514 $176,436 $154,624
Oil and condensate sales 33,167 33,143 59,182 66,456
Natural gas liquids and other 8,934 7,814 15,891 20,715
Total 119,536 112,471 251,509 241,795
Costs and Expenses
Operating expenses 27,271 23,988 52,524 48,181
Administrative and general 15,504 15,114 29,883 28,055
Depreciation, depletion and
amortization 42,978 37,904 90,683 83,482
Other taxes 10,954 10,073 21,787 21,187
Provisions for impairments of
international properties --- --- --- 4,700
Total 96,707 87,079 194,877 185,605
Operating Income 22,829 25,392 56,632 56,190
Other Income 943 2,039 1,175 2,289
Gross Income 23,772 27,431 57,807 58,479
Interest Expense 6,703 7,975 13,717 16,343
Income before Income Taxes and
Cumulative Effect of Changes
in Accounting Principles 17,069 19,456 44,090 42,136
Income Taxes 5,386 7,086 15,345 14,488
Net Income before Cumulative Effect of
Changes in Accounting Principles 11,683 12,370 28,745 27,648
Cumulative Effect of Changes in
Accounting Principles --- --- --- 77,403
Net Income $ 11,683 $ 12,370 $ 28,745 $105,051
Per Common Share
Net income before cumulative effect of
changes in accounting principles $ 0.20 $ 0.22 $ 0.49 $ 0.50
Cumulative effect of changes in
accounting principles --- --- --- 1.39
Net income 0.20 0.22 0.49 1.88
Dividends $ 0.075 $ 0.075 $ 0.15 $ 0.15
Average Number of Shares Outstanding 58,762 56,278 58,727 55,814
See accompanying notes to consolidated financial statements.
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, December 31,
thousands 1994 1993
ASSETS
Current Assets
Cash and cash equivalents $ 56,339 $ 17,799
Accounts receivable 93,514 110,486
Inventories, at average cost 12,288 9,551
Prepaid expenses 445 3,025
Total 162,586 140,861
Properties and Equipment
Original cost 3,424,984 3,266,825
Less accumulated depreciation, depletion
and amortization 1,511,813 1,425,098
Net properties and equipment - based on
the full cost method of accounting
for oil and gas properties 1,913,171 1,841,727
Deferred Charges 32,421 40,198
$2,108,178 $2,022,786
See accompanying notes to consolidated financial statements.
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED BALANCE SHEET (continued)
(Unaudited)
June 30, December 31,
thousands 1994 1993
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable
Trade and other $ 81,536 $ 92,311
Banks 10,978 13,328
Accrued expenses
Interest 7,877 7,663
Taxes and other 16,273 12,715
Total 116,664 126,017
Long-term Debt 606,292 542,500
Deferred Credits
Deferred income taxes 437,894 424,293
Other 61,565 65,810
Total 499,459 490,103
Stockholders' Equity
Common stock, par value $0.10
(200,000,000 shares authorized,
58,779,402 and 58,668,407 shares issued
and outstanding as of June 30, 1994
and December 31, 1993, respectively) 5,924 5,912
Preferred stock, par value $1.00
(2,000,000 shares authorized, no
shares issued as of June 30, 1994
and December 31, 1993) --- ---
Paid-in capital 240,168 236,001
Retained earnings (as of June 30, 1994,
$235,763,000 was not restricted
as to the payment of dividends) 643,460 625,308
Deferred compensation (3,434) (3,055)
Treasury stock (6,234 shares as of
June 30, 1994) (355) ---
Total 885,763 864,166
$2,108,178 $2,022,786
See accompanying notes to consolidated financial statements.
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30
thousands 1994 1993
Cash Flow from Operating Activities
Net income $ 28,745 $105,051
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation, depletion and amortization 90,683 83,482
Amortization of restricted stock 554 1,018
Deferred income taxes 14,964 12,873
Cumulative effect of changes in
accounting principles --- (77,403)
Provisions for impairments of international
properties --- 4,700
134,946 129,721
Decrease in accounts receivable 16,972 28,256
(Increase) decrease in inventories (2,737) 137
Decrease in accounts payable - trade and
other and accrued expenses (7,003) (10,519)
Other items - net 6,402 186
Net cash from operating activities 148,580 147,781
Cash Flow from Investing Activities
Additions to properties and equipment (222,784) (108,684)
Sales and retirements of properties and equipment 57,960 1,992
Net cash used in investing activities (164,824) (106,692)
Cash Flow from Financing Activities
Additions to debt 74,792 150,021
Retirements of debt (11,000) (190,500)
Increase (decrease) in accounts payable, banks (2,350) 411
Dividends paid (8,811) (8,323)
Issuance of common stock 3,246 3,811
Issuance of treasury stock --- 632
Purchase of treasury stock (355) (179)
Net cash from (used in) financing activities 55,522 (44,127)
Effect of Exchange Rate Changes on Cash (738) (64)
Net Increase (Decrease) in Cash and Cash
Equivalents 38,540 (3,102)
Cash and Cash Equivalents at Beginning of Period 17,799 14,833
Cash and Cash Equivalents at End of Period $ 56,339 $ 11,731
See accompanying notes to consolidated financial statements.
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.Summary of Accounting Policies Anadarko Petroleum Corporation is engaged in
the exploration, development, production and marketing of gas, oil and natural
gas liquids. The terms "Anadarko" and "Company" refer to Anadarko Petroleum
Corporation and its subsidiaries. The principal subsidiaries of Anadarko are
Anadarko Gathering Company, Anadarko Marketing Company, Anadarko Trading
Company, Anadarko Petroleum of Canada Ltd. and Anadarko Algeria Corporation.
Effective January 1, 1993, Anadarko adopted Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes", which resulted in an
increase to net income of $87,071,000 and SFAS No. 106, "Employers' Accounting
for Postretirement Benefits Other Than Pensions", which resulted in a decrease
to net income of $9,668,000.
2.Inventories The major classes of inventories are as follows:
June 30, December 31,
thousands 1994 1993
Materials and supplies $ 9,279 $8,226
Natural gas liquids, stored in inventory 3,009 1,325
$12,288 $9,551
3.Properties and Equipment Oil and gas properties include costs of
$278,310,000 and $180,933,000 at June 30, 1994 and December 31, 1993,
respectively, which were excluded from capitalized costs being amortized.
These amounts represent costs associated with unevaluated properties and major
development projects.
4. Long-term Debt A summary of long-term debt follows:
June 30, December 31,
thousands 1994 1993
Notes Payable, Banks $131,500 $142,500
Commercial Paper 74,792 ---
8 3/4% Notes due 1998 100,000 100,000
8 1/4% Notes due 2001 100,000 100,000
6 3/4% Notes due 2003 100,000 100,000
5 7/8% Notes due 2003 100,000 100,000
$606,292 $542,500
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
4.Long-term Debt (continued)
In May 1994, the Company entered into a $250,000,000 Revolving Credit
Agreement and a $150,000,000 364-Day Credit Agreement with a group of 11
commercial banks. Interest rates are based on either the reference rate,
the rate of certificate of deposit, the Eurodollar rate or a combination
thereof. The Agreements provide for commitment fees on the unused balances
at a rate of 18.5/100 of one percent and 12.5/100 of one percent for the
Revolving Credit Agreement and 364-Day Credit Agreement, respectively. The
Revolving Credit Agreement will expire in 1999. The Agreements replaced the
Revolving Credit Agreement entered into in February 1992. As of June 30,
1994, there were no outstanding borrowings under these Agreements.
The notes payable to banks have been classified as long-term debt in
accordance with SFAS 6, "Classification of Short-term Obligations Expected
to be Refinanced", under the terms of Anadarko s $250,000,000 Revolving
Credit Agreement.
5.Statement of Cash Flows Supplemental Information The amounts of cash
paid for interest (net of amounts capitalized) and income taxes are as
follows:
Six Months Ended
June 30
thousands 1994 1993
Interest $12,472 $14,381
Income taxes $ 628 $ 5,137
In July 1993, $99,778,000 principal amount of 6 1/4% Convertible
Subordinated Debentures due 2014 were converted into 2,917,276 shares of
Anadarko Common Stock.
6.Contingencies - Environmental On December 17, 1993, the Company received
a notice from the Department of Justice in the State of California
indicating the Company may be a Potentially Responsible Party (PRP) for the
study, cleanup and closure of the waste facility owned by Geothermal, Inc.
in Middletown, California (the GI site ). Anadarko s records indicate the
disposal of a limited number of barrels of drilling mud at the GI site in
1982. During the first quarter of 1994, the Company, along with other PRPs,
became a party to a Cost Sharing, Joint Defense and Confidentiality
Agreement, effective October 20, 1993. The Company believes its share of costs
in connection with the cleanup of the GI site will be approximately $35,000 to
$70,000.
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
7.The information as furnished reflects all normal recurring adjustments that
are, in the opinion of management, necessary to a fair statement of
financial position as of June 30, 1994 and December 31, 1993, the results of
operations for the three and six months ended June 30, 1994 and 1993, and
cash flows for the six months ended June 30, 1994 and 1993.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Overview
For the second quarter of 1994, Anadarko's net income was $11.7 million (20
cents per share) compared to net income of $12.4 million (22 cents per share)
for the second quarter of 1993. For the first six months of 1994, Anadarko's
net income was $28.7 million (49 cents per share). This compares to net income,
before changes in accounting principles, of $27.6 million (50 cents per share)
for the same period of 1993. Including the cumulative effect of changes in
accounting principles, net income for the first six months of 1993 was $105.1
million ($1.88 per share).
Operating Results
Revenues for the second quarter of 1994 were $119.5 million, up six percent
compared to $112.5 million for the second quarter of 1993. The increase in
revenues for the second quarter of 1994 is due primarily to higher volumes of
natural gas, oil and natural gas liquids (NGLs), which more than offset
declines in natural gas and oil prices. Although oil prices have rebounded in
recent weeks, prices during the second quarter of 1994 were still more than $2
per barrel lower than the second quarter of 1993.
Revenues for the first six months of 1994 were $251.5 million, an increase of
four percent compared to $241.8 million for the same period of 1993. The in-
crease in revenues for the first six months of 1994 is due primarily to higher
production volumes of natural gas and oil, which more than offset declines in
oil and NGLs prices. The following table shows the Company s volumes and U.S.
prices for the three and six months ended June 30, 1994 and 1993:
Three Months Ended
June 30 % Increase
1994 1993 (Decrease)
Natural gas, million cubic feet 42,957 34,754 24
Price per thousand cubic feet $ 1.74 $ 2.05 (15)
Crude oil and condensate,
thousand barrels 2,119 1,903 11
Price per barrel $ 15.66 $ 17.74 (12)
Natural gas liquids,
thousand barrels 644 442 46
Price per gallon $ 0.30 $ 0.31 (3)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Six Months Ended
June 30 % Increase
1994 1993 (Decrease)
Natural gas, million cubic feet 91,185 81,560 12
Price per thousand cubic feet $ 1.89 $ 1.88 1
Crude oil and condensate,
thousand barrels 4,255 3,834 11
Price per barrel $ 14.03 $ 17.70 (21)
Natural gas liquids,
thousand barrels 1,293 1,249 4
Price per gallon $ 0.26 $ 0.33 (21)
See "Natural Gas Volumes, Prices and Markets" and "Crude Oil,
Condensate and Natural Gas Liquids Volumes and Prices".
Costs and expenses during the second quarter of 1994 were $96.7 million, an in-
crease of 11 percent compared to $87.1 million for the second quarter of 1993.
For the first six months of 1994, costs and expenses totaled $194.9 million
compared to $185.6 million for the first six months of 1993. Higher costs and
expenses for 1994 primarily relate to the higher production volumes which
resulted in higher depreciation, depletion and amortization expense. The year
to date 1993 costs and expenses included $4.7 million in impairments for
international properties recorded in the first quarter of 1993.
Interest expense for the second quarter of 1994 decreased 16 percent to $6.7
million compared to $8.0 million for the second quarter of 1993. For the first
six months of 1994, interest expense was $13.7 million, a decrease of 16 per-
cent compared to $16.3 million for the same period of 1993. The decreases were
due primarily to higher amounts of capitalized interest during 1994 related to
an increase in costs excluded from amortization as a result of the offshore
lease acquisitions in 1994.
Natural Gas Volumes, Prices and Markets During the second quarter of 1994,
Anadarko produced 43.0 billion cubic feet (Bcf) or 472 million cubic feet per
day (MMcf/d) of natural gas, up 24 percent compared to 34.8 Bcf or 382 MMcf/d
of gas in the second quarter of 1993. Anadarko's average U.S. gas price during
the second quarter of 1994 was $1.74 per thousand cubic feet (Mcf), a 15 per-
cent decrease from $2.05 per Mcf in the second quarter of 1993. The increase in
gas production stems primarily from higher production allowables in the Hugoton
Field of Kansas and the West Panhandle Field of Texas.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
For the first half of 1994, Anadarko produced 91.2 Bcf or 504 MMcf/d of gas, up
12 percent compared to 81.6 Bcf or 451 MMcf/d of gas for the same period of
1993. The Company's average U.S. gas price for the first six months of 1994 was
$1.89 per Mcf, a one percent increase from $1.88 per Mcf for the same period of
1993.
Historically, natural gas sales markets have been highly seasonal because of
the increase in residential heating demand during the winter. Due to this
seasonality, Anadarko's natural gas prices and production volumes and,
therefore, financial results have traditionally been stronger in the first and
fourth quarters.
Crude Oil, Condensate and Natural Gas Liquids Volumes and Prices Anadarko s
crude oil and condensate production for the second quarter of 1994 increased 11
percent to 2.1 million barrels (MMBbls) from 1.9 MMBbls in the second quarter
of 1993. Anadarko's average U.S. oil price was down 12 percent to $15.66 per
barrel in the second quarter of 1994 compared to $17.74 per barrel for the same
period in 1993. However, during the second quarter of 1994, the Company's
average U.S. oil price improved from $12.36 per barrel in the first quarter of
1994.
For the first six months of 1994, crude oil and condensate production was 4.3
MMBbls, an increase of 11 percent compared to 3.8 MMBbls for the same period of
1993. Anadarko's average U.S. oil price for the first half of 1994 was $14.03
per barrel, a decrease of 21 percent compared to $17.70 per barrel for the same
period of 1993.
The increases in oil production is due primarily to higher
volumes from several waterflood oil projects in Southwest Kansas and West
Texas.
Generally, the Company's oil and condensate production is sold on a monthly
basis as it is produced. Production of oil is usually not affected by seasonal
swings in market prices.
NGLs sales volumes were up 46 percent to 644 thousand barrels (MBbls) at an
average price of 30 cents per gallon for the second quarter of 1994. This
compares to 442 MBbls at an average price of 31 cents per gallon for the same
period of 1993. The increase in volumes is due primarily to higher gas
production volumes and an increase in product sold from inventory.
NGLs volumes for the first six months of 1994 were up four percent to 1,293
MBbls at an average price of 26 cents per gallon compared to 1,249 MBbls at
an average price of 33 cents per gallon during the same period of 1993. The
increase in volumes is due primarily to higher gas production volumes offset by
an increase in product stored in inventory.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Capital Expenditures, Liquidity and Dividends
During the first six months of 1994, Anadarko's capital spending (including
capitalized interest and overhead) was $222.4 million compared to $110.0 mill-
ion in the same period of 1993. Capital expenditures in both periods related
primarily to the Company's oil and gas exploration and development activities.
The increase in capital expenditures for 1994 includes $72 million for offshore
leases in the Gulf of Mexico that were acquired in March 1994.
Net cash from operating activities for the first half of 1994 was $148.6 mill-
compared to $147.8 million in the first six months of 1993.
Anticipated higher cash flows and proceeds from divestitures have led the
Company to increase its original capital budget for 1994 from $370 million to
$460 million, an increase of 24 percent. The Company's revised spending budget
includes increased investments in offshore leases, exploratory drilling onshore
and offshore U.S., and construction of platforms and other development facili-
ties in the Gulf of Mexico.
In 1994, the Company has received $55 million (of which $31 million was recei-
ved during the second quarter) from the sale of properties in Canada, Arkansas,
Louisiana and eastern Oklahoma. In addition, the Company expects to offer a
package of Rocky Mountain properties for sale later this year.
The Company believes cash flows and existing available credit facilities will
be sufficient to meet capital and operating requirements during the remainder
of 1994. However, Anadarko may pursue other financing options to reduce or
stabilize interest costs.
In May 1994, the Company entered into a $250 million Revolving Credit Agreement
and a $150 million 364-Day Credit Agreement with a group of 11 commercial
banks. These Agreements replaced the Revolving Credit Agreement entered into in
February 1992. As of June 30, 1994, there were no outstanding borrowings under
these Agreements.
Anadarko's Board of Directors declared a quarterly dividend of seven and one-
half cents per share of common stock outstanding. The dividend is payable on
September 28, 1994 to stockholders of record on September 14, 1994. The amount
of future dividends for Anadarko will depend on earnings, financial condition,
capital requirements and other factors, and will be determined by the Directors
on a quarterly basis.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Exploration and Development Drilling
During the second quarter of 1994, Anadarko participated in a total of 56
wells, including 25 oil wells, 24 gas wells and seven dry holes. This compares
to a total of 47 wells, including 25 oil wells, 18 gas wells and four dry holes
during the second quarter of 1993. For the first six months of 1994, Anadarko
participated in a total of 128 wells, including 69 oil wells, 39 gas wells and
20 dry holes. This compares to a total of 80 wells, including 40 oil wells, 27
gas wells and 13 dry holes during the first six months of 1993. Anadarko made
several significant completions during the quarter.
Gulf of Mexico The results of Mahogany No. 2, a well located at Ship Shoal
349, that began drilling in January 1994, were announced in August 1994.
Mahogany No. 2 tested at a flow rate of 4,366 barrels of oil per day (BOPD) and
5.3 MMcf/d of gas, with no water, through a 5/16 inch choke with 6,287 pounds
per square inch (psi) of flowing tubing pressure. The well was drilled to a
total depth of 19,100 feet. Anadarko owns a 37.5 percent working interest in
the field.
In July 1994, Anadarko and partners announced test results from their second
sub-salt discovery named "Teak". The well is located offshore Louisiana on
South Timbalier South Addition Block 260. Teak evaluated part of a three-block
prospect covering South Timbalier Blocks 259, 260 and 283. Four zones were
tested in the well below the salt from 12,000 to 16,600 feet measured depth.
Combined, three zones tested 4,431 BOPD and 7.8 MMcf/d of natural gas. The
fourth zone produced water with no hydrocarbons. However, the well suffered
severe mechanical problems during drilling operations and the wellbore was
plugged and abandoned. Further evaluation is needed to determine if the
discovery is commercial. Phillips Petroleum Company (Phillips), the operator,
and Anadarko each have a 50 percent working interest in the well.
In June 1994, Anadarko and partner Phillips announced their third sub-salt
prospect named "Mesquite" was a dry hole. The well is located offshore
Louisiana at Vermilion Block 349 and was drilled to a total depth of 16,146
feet. Anadarko, the operator, and Phillips each own a 50 percent working
interest in the block.
Anadarko expects to drill two to three additional sub-salt wells in the
remainder of 1994.
Algeria In May 1994, results from two wildcat wells drilling on Block 404
were announced. The Hassi Berkine East No. 1 (HBE-1) was plugged and abandoned
after reaching a total depth of 14,025 feet in the Devonian formation. The
well tested at non-commercial rates.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
The Berkine East No. 1 (BKE-1) began drilling in March 1994 and reached its
first pay objective in mid-May. The BKE-1 encountered 165 feet of net oil pay
in Triassic sands, with sample fluids indicating 42 degree API crude oil. At
the end of July 1994, the BKE-1 was still testing.
In May 1994, Anadarko and partners announced plans for the development of the
Hassi Berkine Oil Field.
Golden Trend In the second quarter of 1994, Anadarko had seven completions
in the Golden Trend, located in central Oklahoma. In the Bradley Field, the
Mitchusson "A" No. 1-29 well flowed 466 BOPD and 1.9 MMcf/d of gas with flowing
tubing pressure of 1,620 psi through a 1/4 inch choke. Anadarko is the oper-
ator and has a 75 percent working interest in the well. The Wells No. 1-28 was
completed, flowing 57 BOPD and 703 thousand cubic feet per day (Mcf/d) from
four intervals. Anadarko owns a 42 percent working interest in the well.
Also from the Bradley Field, the Askins "A" No. 1-2 flowed 447 BOPD and 1.2
MMcf/d of gas with flowing tubing pressure of 550 psi. The Maurer "B" No. 1-21
flowed 120 BOPD and 1.5 MMcf/d of gas with flowing tubing pressure of 190 psi.
Anadarko owns a 100 percent working interest in both wells.
In the Lindsay North Field in McClain County, Oklahoma, the Keith "A" No. 3-19
flowed 108 BOPD and 1.2 MMcf/d of gas from a 7/16 inch choke with flowing
tubing pressure of 500 psi. Anadarko owns a 68.8 percent working interest in
the well.
The Ivey "A" No. 1-27 was completed in the Antioch Southwest Field in Garvin
County, Oklahoma. The well flowed 125 BOPD and 1.2 MMcf/d of gas from a 9/16
inch choke. Anadarko owns a 94.5 percent working interest in the well.
In Grady County, Oklahoma, the Simms "A" No. 1-2 flowed 174 BOPD and 1.8 MMcf/d
of gas through a 3/8 inch choke with flowing tubing pressure of 850 psi.
Anadarko owns an 80.5 percent working interest in the well.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Southwest Kansas/Hugoton In the Gentzler Field in Stevens County, Kansas,
the Perry "A" No. 2 tested at 1.5 MMcf/d of gas with both shut-in tubing
pressure and casing pressure of 1,100 psi. The Ratcliff "B" No. 2 was reported
with flow potential of 2.9 MMcf/d of gas with shut-in pressure on both tubing
and casing pressure in excess of 1,300 psi. Anadarko own a 100 percent
interest in both wells.
In the Stirrup Field in Morton County, Kansas, the Callahan "A" No. 1 yielded
5.2 MMcf/d of gas through a one-inch choke. Anadarko owns a 100 percent
working interest in the well.
The Hitch Unit No. 3-3, in Seward County, Kansas, flowed 600 BOPD and 20 Mcf/d
of gas. Anadarko owns a 90 percent working interest in the well.
Permian Basin/West Texas In Irion County, Texas, the Ketchum Mountain
(Clearfork) Unit No. 33-03 was completed. The well flowed 216 BOPD and 300
Mcf/d of gas from a 5/16 inch choke. Anadarko is operator and owns an 88.6
percent working interest in the well.
On July 1, 1994, Anadarko finalized a like-kind property exchange with
Phillips. Anadarko traded its small working interest in three mature secon-
dary units operated by Phillips for a 100 percent working interest in three
primary producing leases surrounded by and adjacent to the Goldsmith Cummins
Deep Unit. The Company plans to initiate waterflood operations on these leases
early next year.
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Orginally Filed
Exhibit No. Description As Exhibit
4(a) Revolving Credit Agreement Dated as 4.1 to Form S-8
of May 24, 1994 dated July 8, 1994
4(b) 364-Day Credit Agreement Dated as of 4.2 to Form S-8
May 24, 1994 dated July 8, 1994
(b) Reports on Form 8-K
There were no reports filed on Form 8-K for the three months ended
June 30, 1994.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned duly authorized officer and principal financial officer.
ANADARKO PETROLEUM CORPORATION
(Registrant)
August 11, 1994 [MICHAEL E. ROSE]
Michael E. Rose - Senior Vice President,
Finance and Chief Financial Officer