Exhibit 99.2
Anadarko Issues 2004 Production & Financial Guidance
HOUSTON--(BUSINESS WIRE)--Jan. 30, 2004--Anadarko Petroleum
Corporation (NYSE:APC) announced today that it will submit its 2004
financial and operating plans to its Board of Directors on Feb. 5.
Details of the budget, including allocations for specific exploration
and development operations, will be announced Feb. 6.
The company expects to implement 2004 capital spending in the
range of $2.6 billion to $2.9 billion, based on actual prices of oil
and natural gas and cash flow.
Based on these projections, oil and natural gas sales volumes are
expected to grow 1 to 4 percent in 2004 over 2003's volumes of 192
million barrels of oil equivalent. The company's previous guidance was
for 4 to 10 percent production growth in 2004. A delay in forecasted
production from the company's deepwater Marco Polo project, caused by
weather, reduced the range by two to three percentage points. The
remaining smaller reduction is attributable to prudent operational
risk adjustments and capital budget allocations.
"We feel we have properly accounted for risks that are inherent to
our producing properties, such as hurricanes and other weather delays,
as well as other operational issues. There has been no real change in
our decline rates or the performance of our existing assets. Rather,
we are forecasting a range of production growth that incorporates the
potential impact of myriad unexpected operational issues, giving us
confidence in our ability to meet expectations," said Jim Hackett,
Anadarko president and CEO.
Anadarko Petroleum Corporation is one of the world's largest
independent oil and gas exploration and production companies.
Houston-based Anadarko is active in the U.S., Canada, Algeria and
Qatar and is executing strategic exploration programs in several other
countries. More information is available at www.anadarko.com.
Attached to this document is supporting financial and operating
guidance and the company's 2004/2005 hedge position.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities and Exchange Act of 1934. Anadarko believes that its
expectations are based on reasonable assumptions. No assurance,
however, can be given that its goals will be achieved. A number of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in
this release. While Anadarko makes these forward-looking statements in
good faith, neither Anadarko nor its management can guarantee that the
anticipated future results will be achieved. Anadarko discloses proved
reserves that comply with the Securities and Exchange Commission's
(SEC) definitions. Additionally, Anadarko may disclose estimated
reserves, which the SEC guidelines do not allow us to include in
filings with the SEC. See Additional Factors Affecting Business in the
Management's Discussion and Analysis included in the company's 2002
Annual Report on Form 10-K.
Anadarko Petroleum Corporation Financial and Operating Guidance
1st Qtr Total Year
Forecast Forecast
--------------- ---------------
As of January 30, 2004 Units Units
--------------- ---------------
Total Sales (MM BOE) 47 - 49 193 - 199
Crude Oil (MBbl/d): 180 - 198 177 - 191
United States 79 - 85 83 - 89
Canada 14 - 16 14 - 16
Algeria 60 - 80 55 - 63
Other International 20 - 24 23 - 25
Natural Gas (MMcf/d): 1,740 - 1,780 1,815 - 1,865
United States 1,340 - 1,380 1,400 - 1,450
Canada 390 - 410 400 - 430
Natural Gas Liquids (MBbl/d): 41 - 45 41 - 45
United States 38 - 43 38 - 43
Canada 2 - 3 2 - 3
$/ Unit $/ Unit
--------------- ---------------
Price Differentials vs NYMEX
(w/o hedges)
Crude Oil ($/Bbl): (3.50) - (4.00) (3.25) - (3.75)
United States (4.00) - (4.75) (3.75) - (4.50)
Canada (3.00) - (3.75) (2.50) - (3.00)
Algeria (1.25) - (1.75) (1.25) - (1.75)
Other International (8.00) - (8.75) (7.00) - (7.75)
Natural Gas ($/Mcf): (0.55) - (0.75) (0.45) - (0.65)
United States (0.50) - (0.70) (0.40) - (0.60)
Canada (0.75) - (0.95) (0.55) - (0.85)
$MM $MM
--------------- ---------------
Other Revenues:
Marketing 11 - 13 55 - 60
Minerals and Other 13 - 15 50 - 55
$ / Boe $ / Boe
--------------- ---------------
Costs and Expenses:
Operating Costs 4.40 - 4.70 4.45 - 4.75
Depr., Depl. and Amort. 6.90 - 7.10 7.05 - 7.25
Production Taxes (% of Rev) 6.0% - 6.5% 6.0% - 6.5%
$MM $MM
--------------- ---------------
Administrative and General 80 - 85 310 - 340
Impairments of Oil and Gas Assets - - 40 - - 125
Interest Expense 60 - 65 245 - 265
Other (Income) Expense (10) - 10 (20) - 40
Units Units
--------------- ---------------
Federal Tax Rate 37% - 39% 38% - 40%
Deferred Taxes (% of Total Taxes) 65% - 70% 65% - 70%
Avg. Shares Outstanding (MM)
Basic 253 - 254 253 - 254
Diluted 254 - 255 254 - 255
$MM $MM
--------------- ---------------
Capital Investment 725 - 825 2,600 - 2,900
E&P (Cost Incurred) 650 - 725 2,300 - 2,500
Capitalized Direct Expenses 45 - 50 175 - 200
Capitalized Interest 20 - 25 85 - 100
Other 10 - 25 50 - 100
Anadarko Petroleum Corporation
Hedge Position for 2004 & 2005
As of December 31, 2003
Fixed and Physical 2- Way Collars
Contracts
NYMEX
Volume Price Volume Floor Ceiling
Crude Oil Bbl/day $/Bbl Bbl/day $/Bbl $/Bbl
United States
1st Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
2nd Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
3rd Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
4th Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
----------------------------------------------
Total Year 2004 26,000 $27.22 3,260 $22.00 $26.32
----------------------------------------------
Total Year 2005 - $- 1,986 $22.00 $26.32
----------------------------------------------
Algeria
1st Qtr 2004 - $- - $- $-
2nd Qtr 2004 - $- - $- $-
3rd Qtr 2004 - $- - $- $-
4th Qtr 2004 - $- - $- $-
----------------------------------------------
Total Year 2004 - $- - $- $-
----------------------------------------------
Total Crude Oil, All
Locations
1st Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
2nd Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
3rd Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
4th Qtr 2004 26,000 $27.22 3,260 $22.00 $26.32
----------------------------------------------
Total Year 2004 26,000 $27.22 3,260 $22.00 $26.32
----------------------------------------------
Total Year 2005 - $- 1,986 $22.00 $26.32
----------------------------------------------
NYMEX
Volume Price Volume Floor Ceiling
Natural Gas MMMBtu/d $/MMBtu MMMBtu/d $/MMBtu $/MMBtu
United States
1st Qtr 2004 200.0 $3.88 44.3 $4.29 $6.43
2nd Qtr 2004 200.0 $3.88 44.3 $4.29 $6.43
3rd Qtr 2004 200.0 $3.88 44.3 $4.29 $6.43
4th Qtr 2004 200.0 $3.88 44.3 $4.29 $6.43
----------------------------------------------
Total Year 2004 200.0 $3.88 44.3 $4.29 $6.43
----------------------------------------------
Total Year 2005 - $- 26.3 $3.76 $5.65
----------------------------------------------
Canada
1st Qtr 2004 63.5 $3.83 - $- $-
2nd Qtr 2004 63.5 $3.83 - $- $-
3rd Qtr 2004 63.5 $3.83 - $- $-
4th Qtr 2004 45.2 $3.63 - $- $-
----------------------------------------------
Total Year 2004 58.9 $3.79 - $- $-
----------------------------------------------
Total Year 2005 32.6 $3.46 - $- $-
----------------------------------------------
Total Natural Gas,
All Locations
1st Qtr 2004 263.5 $3.87 44.3 $4.29 $6.43
2nd Qtr 2004 263.5 $3.87 44.3 $4.29 $6.43
3rd Qtr 2004 263.5 $3.87 44.3 $4.29 $6.43
4th Qtr 2004 245.2 $3.83 44.3 $4.29 $6.43
----------------------------------------------
Total Year 2004 258.9 $3.86 44.3 $4.29 $6.43
----------------------------------------------
Total Year 2005 32.6 $3.46 26.3 $3.76 $5.65
----------------------------------------------
3- Way Collars
Sold Purchased
Volume Floor Floor Ceiling
Crude Oil Bbl/day $/Bbl $/Bbl $/Bbl
United States
1st Qtr 2004 18,000 $22.50 $27.50 $32.14
2nd Qtr 2004 18,000 $22.50 $27.50 $32.14
3rd Qtr 2004 18,000 $22.50 $27.50 $32.14
4th Qtr 2004 18,000 $22.50 $27.50 $32.14
----------------------------------------------
Total Year 2004 18,000 $22.50 $27.50 $32.14
----------------------------------------------
Total Year 2005 - $- $- $-
----------------------------------------------
Algeria
1st Qtr 2004 20,000 $18.00 $22.00 $28.07
2nd Qtr 2004 20,000 $18.00 $22.00 $28.07
3rd Qtr 2004 20,000 $18.00 $22.00 $28.07
4th Qtr 2004 20,000 $18.00 $22.00 $28.07
----------------------------------------------
Total Year 2004 20,000 $18.00 $22.00 $28.07
----------------------------------------------
Total Crude Oil,
All Locations
1st Qtr 2004 38,000 $20.13 $24.61 $30.00
2nd Qtr 2004 38,000 $20.13 $24.61 $30.00
3rd Qtr 2004 38,000 $20.13 $24.61 $30.00
4th Qtr 2004 38,000 $20.13 $24.61 $30.00
----------------------------------------------
Total Year 2004 38,000 $20.13 $24.61 $30.00
----------------------------------------------
Total Year 2005 - $- $- $-
----------------------------------------------
Sold Purchased
Volume Floor Floor Ceiling
Natural Gas MMMBtu/d $/MMBtu $/MMBtu $/MMBtu
United States
1st Qtr 2004 468.8 $3.23 $4.44 $5.90
2nd Qtr 2004 268.8 $2.67 $3.65 $5.30
3rd Qtr 2004 268.8 $2.67 $3.65 $5.30
4th Qtr 2004 268.8 $2.67 $3.65 $5.30
----------------------------------------------
Total Year 2004 318.5 $2.87 $3.94 $5.52
----------------------------------------------
Total Year 2005 18.8 $2.20 $3.00 $4.83
----------------------------------------------
Canada
1st Qtr 2004 - $- $- $-
2nd Qtr 2004 - $- $- $-
3rd Qtr 2004 - $- $- $-
4th Qtr 2004 - $- $- $-
----------------------------------------------
Total Year 2004 - $- $- $-
----------------------------------------------
Total Year 2005 - $- $- $-
----------------------------------------------
Total Natural Gas,
All Locations
1st Qtr 2004 468.8 $3.23 $4.44 $5.90
2nd Qtr 2004 268.8 $2.67 $3.65 $5.30
3rd Qtr 2004 268.8 $2.67 $3.65 $5.30
4th Qtr 2004 268.8 $2.67 $3.65 $5.30
----------------------------------------------
Total Year 2004 318.5 $2.87 $3.94 $5.52
----------------------------------------------
Total Year 2005 18.8 $2.20 $3.00 $4.83
----------------------------------------------
CONTACT: Anadarko Petroleum Corporation, Houston
Media Contacts:
Teresa Wong, 832-636-1203
teresa_wong@anadarko.com
or
Lee Warren, 832-636-3321
lee_warren@anadarko.com
or
Investor Contacts:
David Larson, 832-636-3265
david_larson@anadarko.com
or
Stewart Lawrence, 832-636-3326
stewart_lawrence@anadarko.com