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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, 1995
Commission File Number: 1-8968
_____________________
ANADARKO PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 76-0146568
(State of incorporation) (I.R.S. Employer
Identification No.)
17001 NORTHCHASE DRIVE, HOUSTON, TEXAS 77060
(Address of executive offices)
(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 31, 1995 is shown below:
Number of Shares
Title of Class Outstanding
Common Stock, $0.10 par value 58,923,759
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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 1995 1994 1995 1994
Revenues
Gas sales $ 69,323 $ 77,435 $127,855 $176,436
Oil and condensate sales 34,434 33,167 65,387 59,182
Natural gas liquids and other 10,133 10,460 23,475 19,073
Total 113,890 121,062 216,717 254,691
Costs and Expenses
Operating expenses 24,712 28,797 52,166 55,706
Administrative and general 14,832 15,504 28,922 29,883
Depreciation, depletion and
amortization 42,130 42,978 78,834 90,683
Other taxes 9,970 10,954 20,186 21,787
Total 91,644 98,233 180,108 198,059
Operating Income 22,246 22,829 36,609 56,632
Other Income 213 943 272 1,175
Gross Income 22,459 23,772 36,881 57,807
Interest Expense 9,012 6,703 17,024 13,717
Income before Income Taxes 13,447 17,069 19,857 44,090
Income Taxes 4,394 5,386 6,724 15,345
Net Income $ 9,053 $ 11,683 $ 13,133 $ 28,745
Per Common Share
Net income $ 0.15 $ 0.20 $ 0.22 $ 0.49
Dividends $ 0.075 $ 0.075 $ 0.15 $ 0.15
Average Number of Shares
Outstanding 58,910 58,762 58,894 58,727
See accompanying notes to consolidated financial statements.
2
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, December 31,
thousands 1995 1994
ASSETS
Current Assets
Cash and cash equivalents $ 11,605 $ 6,530
Accounts receivable 94,005 115,181
Inventories, at average cost 16,094 13,420
Prepaid expenses 440 3,496
Total 122,144 138,627
Properties and Equipment
Original cost 3,546,311 3,446,252
Less accumulated depreciation, depletion
and amortization 1,521,479 1,460,196
Net properties and equipment - based on
the full cost method of accounting
for oil and gas properties 2,024,832 1,986,056
Deferred Charges 9,785 17,418
$2,156,761 $2,142,101
See accompanying notes to consolidated financial statements.
3
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED BALANCE SHEET (continued)
(Unaudited)
June 30, December 31,
thousands 1995 1994
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable
Trade and other $ 66,145 $ 95,829
Banks 6,059 14,287
Accrued expenses
Interest 9,892 7,676
Taxes and other 15,305 10,359
Total 97,401 128,151
Long-term Debt 666,720 629,281
Deferred Credits
Deferred income taxes 445,280 438,684
Other 40,831 46,386
Total 486,111 485,070
Stockholders' Equity
Common stock, par value $0.10
(200,000,000 shares authorized,
58,917,270 and 58,857,290 shares issued
and outstanding as of June 30, 1995
and December 31, 1994, respectively) 6,037 5,931
Preferred stock, par value $1.00
(2,000,000 shares authorized, no
shares issued as of June 30, 1995
and December 31, 1994) --- ---
Paid-in capital 289,537 243,976
Retained earnings (as of June 30, 1995,
$256,529,000 was not restricted
as to the payment of dividends) 657,332 653,112
Deferred compensation (3,127) (3,420)
Executives and directors benefits trust,
at market value (1,000,000 shares
as of June 30, 1995) (43,250) ---
Total 906,529 899,599
$2,156,761 $2,142,101
See accompanying notes to consolidated financial statements.
4
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30
thousands 1995 1994
Cash Flow from Operating Activities
Net income $ 13,133 $ 28,745
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation, depletion and amortization 78,834 90,683
Amortization of restricted stock 819 554
Deferred income taxes 6,624 14,964
99,410 134,946
Decrease in accounts receivable 21,176 16,972
Increase in inventories (2,674) (2,737)
Decrease in accounts payable - trade and
other and accrued expenses (22,522) (7,003)
Other items - net 6,466 6,402
Net cash from operating activities 101,856 148,580
Cash Flow from Investing Activities
Additions to properties and equipment (121,561) (222,784)
Sales and retirements of properties
and equipment 2,591 57,960
Net cash used in investing activities (118,970) (164,824)
Cash Flow from Financing Activities
Additions to debt 155,000 74,792
Retirements of debt (117,561) (11,000)
Decrease in accounts payable, banks (8,228) (2,350)
Dividends paid (8,913) (8,811)
Issuance of common stock 1,891 3,246
Issuance of treasury stock 252 ---
Purchase of treasury stock (252) (355)
Net cash from financing activities 22,189 55,522
Effect of Exchange Rate Changes on Cash --- (738)
Net Increase in Cash and Cash Equivalents 5,075 38,540
Cash and Cash Equivalents at Beginning of Period 6,530 17,799
Cash and Cash Equivalents at End of Period $ 11,605 $ 56,339
See accompanying notes to consolidated financial statements.
5
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 (NGLs). The terms "Anadarko" and "Company" refer to
Anadarko Petroleum Corporation and its subsidiaries. The principal
subsidiaries of Anadarko are Anadarko Gathering Company, Anadarko Trading
Company and Anadarko Algeria Corporation. In December 1994, the Company
sold its wholly-owned subsidiary, Anadarko Petroleum of Canada Ltd.
Certain amounts for prior years have been reclassified to conform to the
current presentation.
2.Inventories Inventories are stated at the lower of average cost or market.
NGLs and natural gas, when sold from inventory, are charged to expense using
the average-cost method. The major classes of inventories are as follows:
June 30, December 31,
thousands 1995 1994
Materials and supplies $12,427 $11,953
Natural gas liquids, stored in inventory 1,072 842
Natural gas, stored in inventory 2,595 625
$16,094 $13,420
3.Properties and Equipment Oil and gas properties include costs of
$256,289,000 and $270,956,000 at June 30, 1995 and December 31, 1994,
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 1995 1994
Notes Payable, Banks $104,000 $ 49,000
Commercial Paper 62,720 180,281
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
7 1/4% Debentures due 2025 100,000 ---
$666,720 $629,281
6
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
4.Long-term Debt (continued)
In March 1995, Anadarko issued $100,000,000 principal amount of 7 1/4%
Debentures due 2025. Each Debenture holder has the one-time right to have
the Company purchase on March 15, 2000, all or a portion of, the Debenture
at a purchase price equal to par plus accrued and unpaid interest. Net
proceeds from the offering were used to fix existing floating interest rate
debt.
The notes payable to banks and commercial paper have been classified as
long-term debt in accordance with Statement of Financial Accounting
Standards No. 6, "Classification of Short-term Obligations Expected to be
Refinanced", under the terms of Anadarko's Bank Credit Agreements.
5.Stock In May 1995, the Company issued 1,000,000 shares of common stock
to the Anadarko Petroleum Corporation Executives and Directors Benefits
Trust (Trust) to secure present and future unfunded benefit obligations of
the Company. The shares issued to the Trust are not considered outstanding
for quorum or voting calculations, but the Trust will receive dividends.
The shares are included in the calculation of earnings per share under the
treasury stock method and have no dilutive effect. The fair market value
of these shares is included in common stock and paid-in capital and as a
reduction to stockholders' equity. As of June 30, 1995, there were
1,000,000 shares in the Trust.
For the second quarter of 1995, dividends of seven and one-half cents per
share were paid to holders of common stock. Under the most restrictive
provisions of the various credit agreements, which limit the payment of
dividends by the Company, retained earnings of $256,529,000 and $249,599,000
were not restricted as to the payment of dividends at June 30, 1995 and
December 31, 1994, respectively.
6.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 1995 1994
Interest $14,161 $12,472
Income taxes $ 1,008 $ 628
7
Item 1. Financial Statements (continued)
ANADARKO PETROLEUM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
7.Operating Expenses Operating expenses by category are as follows:
Three Months Ended Six Months Ended
June 30 June 30
thousands 1995 1994 1995 1994
Oil and gas $16,512 $18,532 $32,348 $35,640
Plant and gathering 5,748 6,272 13,608 11,752
Gas purchases 2,158 3,868 4,863 8,098
Other 294 125 1,347 216
Total $24,712 $28,797 $52,166 $55,706
8. 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, 1995 and December 31, 1994, the results of
operations for the three and six months ended June 30, 1995 and 1994, and
cash flows for the six months ended June 30, 1995 and 1994.
8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Overview of Operating Results
For the second quarter of 1995, Anadarko's net income was $9.1 million (15
cents per share of common stock outstanding) compared to net income of $11.7
million (20 cents per share) for the second quarter of 1994. Revenues for
the second quarter of 1995 were $113.9 million, down six percent compared to
$121.1 million for the second quarter of 1994. The decrease in net income
and revenues for the second quarter of 1995 is due primarily to lower natural
gas prices and lower production volumes of crude oil.
For the first six months of 1995, Anadarko's net income was $13.1 million (22
cents per share). This compares to net income of $28.7 million (49 cents per
share) for the same period of 1994. Revenues for the first six months of 1995
were $216.7 million, a decrease of 15 percent compared to $254.7 million for
the same period of 1994. The decrease in net income and revenues for the
first six months of 1995 is due primarily to lower natural gas production and
prices and lower production volumes of crude oil.
The following table shows the Company's volumes and U.S. prices for the three
and six months ended June 30, 1995 and 1994:
Three Months Ended
June 30 % Increase
1995 1994 (Decrease)
Natural gas, million cubic feet 43,546 42,957 1
Price per thousand cubic feet $ 1.46 $ 1.74 (16)
Crude oil and condensate,
thousand barrels 1,936 2,119 (9)
Price per barrel $ 17.44 $ 15.66 11
Natural gas liquids,
thousand barrels 754 823 (8)
Price per gallon $ 0.30 $ 0.29 3
9
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Six Months Ended
June 30 % Increase
1995 1994 (Decrease)
Natural gas, million cubic feet 84,866 91,185 (7)
Price per thousand cubic feet $ 1.38 $ 1.89 (27)
Crude oil and condensate,
thousand barrels 3,774 4,255 (11)
Price per barrel $ 16.97 $ 14.03 21
Natural gas liquids,
thousand barrels 1,768 1,645 7
Price per gallon $ 0.31 $ 0.26 19
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 1995 were $91.6 million, a
decrease of seven percent compared to $98.2 million for the second quarter of
1994. The decrease was mostly related to lower operating expenses and
partially offset the decline in the quarter's revenues.
For the first six months of 1995, costs and expenses totaled $180.1 million, a
decrease of nine percent compared to $198.1 million for the first six months of
1994. The decrease is primarily due to lower charges for depletion,
depreciation and amortization and lower operating expenses.
Interest expense for the second quarter of 1995 increased 34 percent to $9.0
million compared to $6.7 million for the second quarter of 1994. For the first
six months of 1995, interest expense was $17.0 million, an increase of 24
percent compared to $13.7 million for the same period of 1994. The increases
primarily are due to higher levels of borrowings and interest rates in 1995.
Natural Gas Volumes, Prices and Markets During the second quarter of 1995,
Anadarko produced 43.5 billion cubic feet (Bcf) or 479 million cubic feet per
day (MMcf/d) of natural gas, up one percent compared to 43.0 Bcf or 472 MMcf/d
of gas in the second quarter of 1994. Anadarko's average U.S. gas price during
the second quarter of 1995 was $1.46 per thousand cubic feet (Mcf), a 16
percent decrease from $1.74 per Mcf in the second quarter of 1994.
10
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
For the first half of 1995, Anadarko produced 84.9 Bcf or 469 MMcf/d of gas,
down seven percent compared to 91.2 Bcf or 504 MMcf/d of gas for the same
period of 1994. The Company's average U.S. gas price for the first six
months of 1995 was $1.38 per Mcf, a 27 percent decrease from $1.89 per Mcf
for the same period of 1994. The decrease in gas production volumes
primarily is due to divestitures of properties in late 1994 and the Company's
decision to curtail some production during periods of weak prices in the
first quarter of 1995.
Crude Oil, Condensate and Natural Gas Liquids Volumes and Prices Anadarko's
crude oil and condensate production for the second quarter of 1995 decreased
nine percent to 1.9 million barrels (MMBbls) from 2.1 MMBbls in the second
quarter of 1994. Anadarko's average U.S. oil price was up 11 percent to $17.44
per barrel in the second quarter of 1995 compared to $15.66 per barrel for the
same period in 1994.
For the first six months of 1995, crude oil and condensate production was 3.8
MMBbls, a decrease of 11 percent compared to 4.3 MMBbls for the same period of
1994. Anadarko's average U.S. oil price for the first half of 1995 was $16.97
per barrel, an increase of 21 percent compared to $14.03 per barrel for the
same period of 1994.
The decline in oil and condensate production for both periods of 1995 primarily
is due to divestitures of properties during late 1994. 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 volatility in market
prices.
NGLs sales volumes were down eight percent to 754 thousand barrels (MBbls) at
an average price of 30 cents per gallon for the second quarter of 1995. This
compares to 823 MBbls at an average price of 29 cents per gallon for the same
period of 1994.
NGLs volumes for the first six months of 1995 were up seven percent to 1,768
MBbls at an average price of 31 cents per gallon compared to 1,645 MBbls at an
average price of 26 cents per gallon during the same period of 1994.
Hedging Strategies Anadarko uses financial instruments to limit exposure to
changes in the market price of natural gas and crude oil for both the Company
and its customers. While financial instruments are intended to reduce the
Company's exposure to declines in the market price of natural gas and crude
oil, the financial instruments may also limit Anadarko's gain from increases in
the market price of natural gas and crude oil. As a result, gains and losses
on financial instruments are generally offset by similar changes in the
realized price of natural gas and crude oil. Gains and losses are recognized
in revenues for the periods to which the financial instruments relate.
Anadarko's financial instruments currently are comprised of futures, swaps and
options.
11
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 1995, Anadarko's capital spending (including
capitalized interest and overhead) was $121.0 million compared to $222.4
million in the same period of 1994. Capital expenditures in both periods
related primarily to the Company's oil and gas exploration and development
activities. Capital expenditures for 1994 included $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 1995 was $101.9
million compared to $148.6 million in the first six months of 1994. Sources
of funds for the Company's capital spending programs include: cash flows;
existing available credit facilities; and, proceeds from sales of producing
properties, where the Company may totally divest non-core properties or
reduce (sell-down) its interest in core properties. The Company believes
these sources will be sufficient to meet capital and operating requirements
during the remainder of 1995. In addition, Anadarko may pursue other
financing options to reduce or stabilize interest costs.
In March 1995, Anadarko issued $100 million principal amount of 7 1/4%
Debentures due 2025. Each Debenture holder has the one-time right to have the
Company purchase on March 15, 2000, all or a portion of, the Debenture at a
purchase price equal to par plus the accrued and unpaid interest. Net proceeds
from the offering were used to fix floating interest rate debt.
Anadarko's Board of Directors declared a quarterly dividend of seven and
one-half cents per share of common stock. The dividend is payable on
September 27, 1995 to stockholders of record on September 13, 1995.
Under the most restrictive provisions of the various credit agreements, which
limit the payment of dividends by the Company, retained earnings of
$256,529,000 were not restricted as to the payment of dividends at June 30,
1995. 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.
In May 1995, the Company issued 1,000,000 shares of common stock to the
Anadarko Petroleum Corporation Executives and Directors Benefits Trust
(Trust) to secure present and future unfunded benefit obligations of the
Company. The shares issued to the Trust are not considered outstanding for
quorum or voting calculations, but the Trust will receive dividends. The
shares are included in the calculation of earnings per share under the
treasury stock method and have no dilutive effect.
12
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Exploration and Development Drilling
During the second quarter of 1995, Anadarko participated in a total of 76
wells, including 37 oil wells, 25 gas wells and 14 dry holes. This compares
to a total of 56 wells, including 25 oil wells, 24 gas wells and seven dry
holes during the second quarter of 1994. For the first six months of 1995,
Anadarko participated in a total of 153 wells, including 79 oil wells, 52
gas wells and 22 dry holes. This compares to a total of 128 wells, including
69 oil wells, 39 gas wells and 20 dry holes during the first six months of
1994.
International
Algeria In July 1995, Anadarko and partners announced test results from the
Berkine East No.2 (BKE-2) well. The BKE-2 well tested at a rate of 17,309
barrels of oil per day (BOPD) and 3.9 MMcf/d of gas through a 68/64" choke at
1,227 pounds per square inch (psi) of flowing tubing pressure from 190 feet of
perforations. This appraisal well is located in the Ghadames Basin on Block
404. It is approximately 1.5 miles from an August 1994 discovery, the BKE-1.
The BKE-2 is Anadarko's third successful appraisal well in Algeria.
In the Algerian venture, the company has two partners, each with a 25 percent
interest; they are LASMO Oil (Algeria) Limited, a wholly-owned subsidiary of
LASMO plc, and Maersk Olie Algeriet AS, a wholly-owned subsidiary of Maersk
Olie OG Gas AS, a company in the Danish A.P. Moeller group. Under terms of a
Production Sharing Agreement, liquid hydrocarbons that are discovered,
developed and produced will be shared by Anadarko, its two partners and
Sonatrach, the national oil and gas enterprise of Algeria.
Political unrest continues in Algeria. Anadarko is closely monitoring the
situation and has taken reasonable and prudent steps to ensure the safety of
its employees working in the remote regions of the Sahara Desert. The
situation has not had any material effect on the Company's operations to date.
United States - Offshore
Matagorda Island The Matagorda Island 636 #1 well was completed during May
1995. This exploratory gas well was drilled in 1994 and suspended, pending the
installation of production equipment. The well had initial test results of 2.8
MMcf/d of gas and 38 barrels of condensate per day (BCPD) with flowing tubing
pressure of 6,054 psi. The second well, the Matagorda Island 622 #6 had
initial gas volumes of 15.6 MMcf/d and 191 BCPD through a 7/64" choke with
flowing tubing pressure of 4,815 psi. Amoco Production Company is the
operator. Anadarko has a 37.5 percent working interest in both wells.
United States - Onshore
Alaska In the 1994-95 winter drilling season, Anadarko and partners received
encouraging results from two wells drilled in the Colville River Delta on
Alaska's North Slope. Partners in the Alaska exploration program include
operator, Arco Alaska (56 percent working interest), Union Texas Petroleum (22
percent) and Anadarko (22 percent).
13
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
In June 1995, Union Texas announced that the partners had discovered 100
million barrels of oil reserves. Although additional drilling success in the
1995-96 drilling program is needed to justify commercial development, the
partners are working now to reduce drilling and field development costs.
Arco is conducting advance work on engineering design and permitting so if
the field is later proven commercial, the partners will have a jump-start on
the development process.
Depending on the condition of the frozen tundra on the North Slope, the 1996
winter drilling season will begin about February and run through early April.
Since the area of exploration is a river delta, the water and ground must be
frozen hard enough to support travel. All equipment must be moved out before
the ice begins to thaw in May.
Permian Basin West Texas In the Ketchum Mountain Field of Irion County,
Texas, 15 wells were completed in the second quarter of 1995. Initial
production from the 15 wells totaled 995 BOPD. Additional leasing and
continued development drilling are planned for 1995. Anadarko owns a 100
percent working interest in the wells.
The Company assumed operations of the TXL South Unit with the trade acquisition
of Texaco's interest in November 1994. Since that date, production has
increased from 650 BOPD to 1,370 BOPD, the highest rate in 20 years. This
increase is attributed to the reactivation of 47 shut-in producers and the
drilling of four new infill producers. A three- to four-year program of
waterflood expansion and drilling is expected to further increase oil
production.
Panhandle West Texas Four wells were completed in the second quarter of
1995 in the Red Cave Formation, located in Moore County Texas. Combined rates
from the four completed wells was 4.3 MMcf/d. Projected development drilling
for the remainder of the year includes 11 additional wells. Anadarko owns a
100 percent working interest in the wells.
Golden Trend Oklahoma In the Bradley Field of Grady County, Oklahoma, two
wells were completed in the second quarter of 1995. Combined initial tests
rates were 81 BOPD and 2.9 MMcf/d of gas. In the Antioch Field of Oklahoma,
one well was completed during the second quarter. Initial tests rates were 155
BOPD and 1.0 MMcf/d of gas. In the Lindsay Field of Oklahoma, two wells were
completed in the second quarter of 1995. Combined initial tests rates were 239
BOPD and 1.0 MMcf/d of gas. The Company owns an average 85.6 percent working
interest in these wells. Production for all of the wells is from the
Sycamore/Woodford/Hunton/Viola intervals.
14
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Southwest Kansas During the second quarter of 1995, the Santa Fe "E" #2
well was completed. Located in the Angman Field of Seward county, the initial
test rate was 2.4 MMcf/d from a 19/64" choke, with flowing tubing pressure of
900 psi. The Santa Fe "E" #3 is currently being completed.
There have been 27 completions in the first half of 1995 from the Hugoton Field
drilling program. Twenty-two infill wells were drilled with average production
per well of 322 thousand cubic feet per day (Mcf/d). Five Hugoton primary
wells were completed with average initial production of 330 Mcf/d. Combined
initial production from the 27 new wells is 8.7 MMcf/d. The Company's
working interest in these wells ranges between 34 and 100 percent. Anadarko
is the operator of 26 of these wells. Through June 1995, 336 infill wells
have been drilled and completed.
15
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Heritage Resources, Inc. Litigation Pursuant to an order of the 162nd
Judicial District Court for Dallas County, Texas, dated January 29, 1988,
requiring all owners of interests in certain properties in Winkler County,
Texas, to be joined as parties Plaintiff or parties Defendant, Anadarko has
entered, as a party Plaintiff, a suit filed against Heritage Resources, Inc.
(Heritage) by Tribal Drilling Company. The Plaintiffs, among other things,
seek to have Heritage removed as operator of a well in which Plaintiffs own
interests. The Defendants have asserted counterclaims against Anadarko and
the 19 other Plaintiffs alleging that, among other things, the assertions of
the Plaintiffs are frivolous and were made in bad faith and the Plaintiffs
breached the joint operating agreements. The trial is scheduled to begin on
May 6, 1996. While the outcome of the litigation cannot be predicted,
Anadarko's management believes that any recovery on the counterclaims in a
material amount is remote.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Description
4(a) Indenture for Senior Debt Securities,
dated as of March 1, 1995, between
Anadarko Petroleum Corporation and the
Chase Manhattan Bank, N.A., Trustee
4(b) Distribution Agreement, dated as of
March 9, 1995, for $300,000,000
Medium-Term Notes, Series A
27 Financial Data Schedule
(b) Reports on Form 8-K
There were no reports filed on Form 8-K for the three months ended
June 30, 1995.
16
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, 1995 [MICHAEL E. ROSE]
Michael E. Rose - Senior Vice President,
Finance and Chief Financial Officer