Exhibit 99
Anadarko Announces Higher First Quarter 2005 Earnings
HOUSTON--(BUSINESS WIRE)--April 29, 2005--Anadarko Petroleum
Corporation (NYSE:APC) today announced first quarter 2005 net income
available to common shareholders of $490 million, or $2.05 per share
(diluted), on revenues of $1.53 billion.
Cash flow from operating activities totaled $936 million in the
first quarter and cash flow from operations before changes in assets
and liabilities totaled $895 million.(1)
"Anadarko is executing on its strategy to actively develop several
large discoveries, grow our unconventional resource plays in North
America and explore in high-potential basins around the world," said
Anadarko President and CEO Jim Hackett. "We've taken the tough steps
to reshape our portfolio, which today is structured for profitable and
sustainable growth.
"Anadarko is a different company than we were this time a year
ago," Hackett said. "Our asset sales and strategic realignment have us
operating from a smaller, more efficient base, which is reflected in
the results we achieved this quarter. While volumes were down from
last year due to the asset sales, they slightly exceeded the high end
of our guidance for the quarter and actually rose about 10 percent,
excluding the production from the properties we sold. Also, revenues
increased and expenses decreased, providing higher net income. The
improvement was further magnified by our stock repurchase program.
Altogether, Anadarko delivered a 32 percent increase in diluted
earnings per share on less than a 5 percent increase in revenues."
The company continued its share repurchase program during the
first quarter and bought 2.6 million shares of outstanding common
stock for approximately $200 million.
During the first quarter of 2005, sales volumes totaled 41 million
barrels of oil equivalent (BOE), or 455,000 BOE per day. Natural gas
sales volumes averaged 1,454 million cubic feet (MMcf) per day and
Anadarko's average realized natural gas price was $5.66 per thousand
cubic feet (Mcf). Oil sales volumes in the first quarter were 177,000
barrels per day. The company's average realized oil price was $42.18
per barrel.
First quarter 2004 net income was $392 million, or $1.55 per share
(diluted), on revenues of $1.46 billion. Cash flow from operating
activities for the same period was $885 million. Cash flow from
operations before changes in assets and liabilities for the first
quarter 2004 totaled $944 million.(1)
EARNINGS CONFERENCE CALL TODAY AT 9:00 A.M. CDT, 10:00 A.M. EDT
Anadarko will host an earnings conference call today at 9:00 a.m.
Central Daylight Time (10:00 a.m. Eastern Daylight Time) to discuss
first quarter 2005 results and the company's outlook for the remainder
of the year. The dial-in number is 913-981-4900, and the confirmation
number is 206120. For complete instructions on how to actively
participate in the conference call, or to listen to the live audio
webcast or a replay, please refer to www.anadarko.com.
ANADARKO OPERATIONS REPORT
For more details on Anadarko's operations, please refer to the
comprehensive report on first quarter drilling activity. The report
will be available at www.anadarko.com on the Investor Relations page.
FINANCIAL DATA
Seven pages of summary financial data follow, including current
hedge positions and guidance.
Anadarko Petroleum Corporation's mission is to deliver a
competitive and sustainable rate of return to shareholders by
developing, acquiring and exploring for oil and gas resources vital to
the world's health and welfare. As of year-end 2004, the company had
2.37 billion BOE of proved reserves, making it one of the world's
largest independent exploration and production companies. Anadarko's
operational focus extends from the deepwater Gulf of Mexico, up
through Texas, Louisiana, the Mid-Continent, western U.S. and Canadian
Rockies and onto the North Slope of Alaska. Anadarko also has
significant production in Algeria, Venezuela and Qatar, and
exploration or production positions in several other countries. For
more information about how Anadarko is bringing excellence to the
surface, please visit: www.anadarko.com.
(1) See accompanying table for a reconciliation of GAAP to
non-GAAP financial measures and statement indicating why management
believes the non-GAAP measures are useful information for investors.
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 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. See Regulatory Matters
and Additional Factors Affecting Business in the Management's
Discussion and Analysis included in the company's 2004 Annual Report
on Form 10-K.
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Below is a reconciliation of cash provided by operating activities
(GAAP) to cash flow from operations before changes in assets and
liabilities (non-GAAP) as required under Regulation G of the
Securities Exchange Act of 1934. The company uses cash flow from
operations before changes in assets and liabilities to demonstrate
the company's ability to internally fund capital expenditures and to
service or incur additional debt. It is useful in comparisons of oil
and gas exploration and production companies because it excludes
fluctuations in assets and liabilities.
Quarter Ended
March 31
----------------
millions 2005 2004
- ----------------------------------------------------------------------
Cash Flow
- ----------------------------------------------------------------------
Net cash provided by operating activities $936 $885
Add back:
Change in accounts receivable (140) 39
Change in accounts payable and accrued expenses 44 (20)
Change in other items - net 55 40
- ----------------------------------------------------------------------
Cash flow from operations before changes in assets and
liabilities $895 $944
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended
Summary Financial Information March 31
--------------------
$ and shares in millions 2005 2004
- ----------------------------------------------------------------------
Revenues
- ----------------------------------------------------------------------
Gas sales $741 $772
Oil and condensate sales 671 551
Natural gas liquids sales 106 103
Other sales 12 34
- ----------------------------------------------------------------------
Total 1,530 1,460
- ----------------------------------------------------------------------
Costs and Expenses
- ----------------------------------------------------------------------
Direct operating 130 158
Transportation and cost of product 70 57
General and administrative 102 79
Depreciation, depletion and amortization 324 348
Other taxes 85 81
Impairments related to oil and gas properties - 9
- ----------------------------------------------------------------------
Total 711 732
- ----------------------------------------------------------------------
Operating Income 819 728
- ----------------------------------------------------------------------
Interest Expense and Other (Income) Expense
- ----------------------------------------------------------------------
Interest expense 52 63
Other (income) expense - 60
- ----------------------------------------------------------------------
Total 52 123
- ----------------------------------------------------------------------
Income Before Income Taxes 767 605
- ----------------------------------------------------------------------
Income Tax Expense 276 212
- ----------------------------------------------------------------------
Net Income $491 $393
- ----------------------------------------------------------------------
Preferred Stock Dividends 1 1
- ----------------------------------------------------------------------
Net Income Available to Common Stockholders $490 $392
- ----------------------------------------------------------------------
Per Common Share
- ----------------------------------------------------------------------
Net income - basic $2.07 $1.56
Net income - diluted $2.05 $1.55
- ----------------------------------------------------------------------
Average Number of Common Shares Outstanding -
Basic 237 252
- ----------------------------------------------------------------------
Average Number of Common Shares Outstanding -
Diluted 239 254
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended
Summary Financial Information March 31
-------------------------
$ in millions 2005 2004
- ----------------------------------------------------------------------
Cash Flow from Operating Activities
- ----------------------------------------------------------------------
Net income $491 $393
Depreciation, depletion and amortization 324 348
Deferred income taxes 73 125
Impairments related to oil and gas
properties - 9
Other noncash items 7 69
- ----------------------------------------------------------------------
895 944
(Increase) decrease in accounts receivable 140 (39)
Increase (decrease) in accounts payable and
accrued expenses (44) 20
Other items - net (55) (40)
- ----------------------------------------------------------------------
Net Cash Provided by Operating Activities $936 $885
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Capital Expenditures
- ----------------------------------------------------------------------
Capital spending $733 $666
Capitalized interest 17 25
Capitalized overhead 45 41
- ----------------------------------------------------------------------
Total $795 $732
- ----------------------------------------------------------------------
March 31, December 31,
2005 2004
- ----------------------------------------------------------------------
Condensed Balance Sheet
- ----------------------------------------------------------------------
Cash and cash equivalents $997 $874
Other current assets 1,481 1,628
Net properties and equipment 16,232 15,913
Other assets 484 468
Goodwill 1,308 1,309
- ----------------------------------------------------------------------
Total Assets $20,502 $20,192
- ----------------------------------------------------------------------
Current liabilities $2,083 $1,993
Long-term debt 3,643 3,671
Other long-term liabilities 5,234 5,243
Stockholders' equity 9,542 9,285
- ----------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $20,502 $20,192
- ----------------------------------------------------------------------
Capitalization
- ----------------------------------------------------------------------
Total debt $3,843 $3,840
Stockholders' equity 9,542 9,285
- ----------------------------------------------------------------------
Total $13,385 $13,125
- ----------------------------------------------------------------------
Capitalization Ratios
- ----------------------------------------------------------------------
Total debt 29% 29%
Stockholders' equity 71% 71%
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended
Volumes and Prices March 31
-----------------
2005 2004
- ----------------------------------------------------------------------
Natural Gas
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, billion cubic feet 107 121
Average daily volumes, million cubic feet per day 1,183 1,328
Price per thousand cubic feet $5.66 $4.86
- ----------------------------------------------------------------------
Canada
- ----------------------------------------------------------------------
Volumes, billion cubic feet 24 36
Average daily volumes, million cubic feet per day 271 395
Price per thousand cubic feet $5.70 $5.12
- ----------------------------------------------------------------------
Total
- ----------------------------------------------------------------------
Volumes, billion cubic feet 131 157
Average daily volumes, million cubic feet per day 1,454 1,723
Price per thousand cubic feet $5.66 $4.92
- ----------------------------------------------------------------------
Crude Oil and Condensate
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, million barrels 6 9
Average daily volumes, thousand barrels per day 70 85
Price per barrel $38.65 $29.88
- ----------------------------------------------------------------------
Canada
- ----------------------------------------------------------------------
Volumes, million barrels 1 1
Average daily volumes, thousand barrels per day 7 15
Price per barrel $45.34 $32.14
- ----------------------------------------------------------------------
Algeria
- ----------------------------------------------------------------------
Volumes, million barrels 7 7
Average daily volumes, thousand barrels per day 77 79
Price per barrel $48.36 $31.37
- ----------------------------------------------------------------------
Other International
- ----------------------------------------------------------------------
Volumes, million barrels 2 2
Average daily volumes, thousand barrels per day 23 23
Price per barrel $31.30 $23.72
- ----------------------------------------------------------------------
Total
- ----------------------------------------------------------------------
Volumes, million barrels 16 19
Average daily volumes, thousand barrels per day 177 202
Price per barrel $42.18 $29.94
- ----------------------------------------------------------------------
Natural Gas Liquids
- ----------------------------------------------------------------------
Total
- ----------------------------------------------------------------------
Volumes, million barrels 3 4
Average daily volumes, thousand barrels per day 36 49
Price per barrel $32.44 $23.41
- ----------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
- ----------------------------------------------------------------------
Volumes, million BOE 41 49
Average daily volumes, thousand BOE per day 455 538
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Hedge Position for 2005 & 2006
As of March 31, 2005
2- Way Collars 3- Way Collars
------------------------ ---------------------------------
Natural Sold Purchased
Gas Volume Floor Ceiling Volume Floor Floor Ceiling
MMMBtu/d $/MMBtu $/MMBtu MMMBtu/d $/MMBtu $/MMBtu $/MMBtu
------------------------ ---------------------------------
United
States
2nd Qtr
2005 26.3 $3.76 $5.65 268.8 $4.01 $5.00 $9.37
3rd Qtr
2005 26.3 $3.76 $5.65 268.8 $4.01 $5.00 $9.37
4th Qtr
2005 26.3 $3.76 $5.65 268.8 $4.01 $5.00 $9.37
------------------------ ---------------------------------
Remainder
Year
2005 26.3 $3.76 $5.65 268.8 $4.01 $5.00 $9.37
------------------------ ---------------------------------
------------------------ ---------------------------------
Total
Year
2006 10.0 $4.00 $5.88 - $- $- $-
------------------------ ---------------------------------
------------------------ ---------------------------------
There are no Fixed Price hedges for the United States.
Fixed and Physical
Contracts
------------------------
Volume NYMEX Price
MMMBtu/d $/MMBtu
------------------------
Canada
2nd Qtr 2005 21.7 $2.98
3rd Qtr 2005 21.7 $2.98
4th Qtr 2005 18.0 $2.95
------------------------
Remainder Year
2005 20.5 $2.97
------------------------
------------------------
Total Year 2006 10.9 $2.87
------------------------
------------------------
There are no Collar hedges for Canada.
------------------------ ---------------------------------
Crude Oil 2- Way Collars 3- Way Collars
------------------------ ---------------------------------
Sold Purchased
Volume Floor Ceiling Volume Floor Floor Ceiling
Bbl/day $/Bbl $/Bbl Bbl/day $/Bbl $/Bbl $/Bbl
------------------------ ---------------------------------
United
States
2nd Qtr
2005 1,986 $22.00 $26.32 43,000 $27.28 $32.28 $46.89
3rd Qtr
2005 1,986 $22.00 $26.32 43,000 $27.28 $32.28 $46.89
4th Qtr
2005 1,986 $22.00 $26.32 43,000 $27.28 $32.28 $46.89
------------------------ ---------------------------------
Remainder
Year 2005 1,986 $22.00 $26.32 43,000 $27.28 $32.28 $46.89
------------------------ ---------------------------------
------------------------ ---------------------------------
Total Year
2006 822 $22.00 $26.32 - $- $- $-
------------------------ ---------------------------------
------------------------ ---------------------------------
There are no Crude Oil hedges for production outside of the United
States.
Anadarko Petroleum Corporation
Financial and Operating Guidance
As of April 29, 2005
2nd Quarter Total Year
2005 Forecast 2005 Forecast
-------------------- --------------------
Units Units
-------------------- --------------------
Total Sales (MM BOE) 37 - 39 159 - 164
Crude Oil (MBbl/d): 140 - 150 164 - 174
United States 64 - 66 76 - 79
Canada 6 - 7 5 - 6
Algeria 50 - 54 59 - 64
Other International 18 - 23 23 - 27
Natural Gas (MMcf/d): 1,440 - 1,480 1,450 - 1,490
United States 1,150 - 1,190 1,165 - 1,200
Canada 270 - 290 275 - 300
Natural Gas Liquids (MBbl/d): 30 - 32 30 - 33
United States 28 - 30 28 - 30
Canada 1 - 2 2 - 3
- ----------------------------------------------------------------------
$/ Unit $/ Unit
-------------------- --------------------
Price Differentials vs NYMEX
(w/o hedges)
Crude Oil ($/Bbl): (4.65) - (6.65) (5.20) - (7.00)
United States (4.25) - (5.50) (5.00) - (6.25)
Canada (9.00) - (11.00) (7.00) - (9.00)
Algeria (1.00) - (3.00) (1.50) - (3.50)
Other International (13.00) - (19.00) (13.00) - (19.00)
Natural Gas ($/Mcf): (0.40) - (0.70) (0.35) - (0.75)
United States (0.35) - (0.65) (0.35) - (0.70)
Canada (0.55) - (0.80) (0.50) - (0.75)
- ----------------------------------------------------------------------
$MM $MM
-------------------- --------------------
Other Revenues:
Marketing 10 - 14 50 - 70
Minerals and Other 13 - 17 20 - 30
- ----------------------------------------------------------------------
Costs and Expenses:
$ / Boe $ / Boe
-------------------- --------------------
Direct Operating 3.20 - 3.40 3.05 - 3.35
Transportation and Cost of
Product 1.45 - 1.60 1.40 - 1.55
Depreciation, Depletion and
Amortization 8.00 - 8.30 7.90 - 8.20
Production Taxes (% of
Revenue) 5.5% - 6.0% 5.6% - 5.8%
$MM $MM
-------------------- --------------------
General and Administrative 100 - 110 400 - 430
Impairments Related to Oil
and Gas Properties - - 20 - - 40
Interest Expense 50 - 52 190 - 210
Other (Income) Expense (5) - 5 - - 10
Federal Tax Rate 35% - 38% 35% - 36%
Deferred Taxes (% of Total
Taxes) 35% - 40% 30% - 40%
- ----------------------------------------------------------------------
Avg. Shares Outstanding (MM)
Basic 235 - 237 235 - 237
Diluted 237 - 239 237 - 239
$MM $MM
-------------------- --------------------
Capital Investment 775 - 825 2,800 - 3,000
Capital Projects 714 - 758 2,555 - 2,735
Capitalized Direct Expenses 45 - 49 180 - 190
Capitalized Interest 16 - 18 65 - 75
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
Margaret Cooper, 832-636-8355
margaret_cooper@anadarko.com
or
Investor Contacts:
David Larson, 832-636-3265
david_larson@anadarko.com
or
Stewart Lawrence, 832-636-3326
stewart_lawrence@anadarko.com