Anadarko Reports Record First Quarter Earnings; Production Volumes Up 236% Over First Quarter 2000

Apr 26, 2001, 01:00 ET from Anadarko Petroleum Corporation

    HOUSTON, April 26 /PRNewswire/ -- Continuing its trend of increasing
 shareholder value and delivering on promised production growth and
 profitability, Anadarko Petroleum Corporation (NYSE:   APC) announced record
 financial results for the first quarter 2001.
     Anadarko had net income available to common stockholders of $656 million,
 or $2.50 per share (diluted) for the first quarter of 2001.  By comparison,
 for the first quarter 2000, the company reported net income available to
 common stockholders of $31 million, or 24 cents per share (diluted).
     Cash flow from operations during the first quarter of 2001 totaled
 $1.117 billion ($4.47 per share), a 727 percent increase over the
 $135 million ($1.06 per share) in the first quarter of 2000.
     "Our first quarter shows great growth, and we intend to continue growing
 with the drill bit.  We've set some very ambitious targets for the full year
 2001, and we're well on our way to achieving those goals," said Robert J.
 Allison, Jr., Anadarko Chairman and Chief Executive Officer.  "Our first
 quarter earnings of $656 million come within striking distance of earning
 almost as much as we did for all of 2000, which was $796 million."
     Significantly increased production, coupled with strong natural gas
 prices, contributed to the company's earnings growth.
     During the first quarter of 2001, Anadarko's production of natural gas,
 crude oil and natural gas liquids was 47 million barrels of oil equivalent
 (BOE), or 522,000 barrels a day, compared to 14 million BOE for first quarter
 2000.  The 236 percent increase in production volumes is attributed primarily
 to last year's acquisition of UPR and increased production from the company's
 operations in Texas, the Gulf of Mexico and Alaska.
     "Anadarko was the most active driller in North America last year and this
 past quarter -- and we achieved significant production growth, because we had
 the people and the prospects to take advantage of the thriving natural gas
 market when the time came.  Because we didn't lay off people over the lean
 years and concentrated on technology, we have a big inventory of prospects to
 drill," Allison said.
     "Profitable growth remains our primary focus at Anadarko," he added, "and
 we're continuing to pursue our goal of reaching 200 million barrels of
 production for 2001."
 
     Highlights
     --  Anadarko has increased its 2001 capital spending plan to $3 billion
         and will drill approximately 2,000 wells this year.  The company
         expects to complete an average of more than five wells per day for
         each day this year.
     --  On March 16, Anadarko completed the $1 billion acquisition of Berkley
         Petroleum Corp.  In addition to being a good fit with existing
         strategy, the deal is expected to be accretive to earnings and cash
         flow and added exploration and development projects.  It will fast-
         track the growth of Anadarko's Canadian oil and gas business.
     --  In East Texas, development of Anadarko's Bossier play -- the company's
         most active drilling area -- continued at a healthy pace with
         significant completions in the first quarter.  Anadarko currently has
         26 drilling rigs active in the Bossier area and expects to drill about
         220 wells there this year.
     --  In the March Gulf of Mexico Lease Sale No. 178, Anadarko was the
         apparent high bidder on 23 tracts covering 120,000 acres.  The new
         acreage, which represents an investment of $32 million for Anadarko,
         includes 16 deepwater blocks.  The tracts bring the company's total
         holdings to 353 leases in the Gulf of Mexico.
     --  Production from Anadarko's Tanzanite and Hickory fields in the Gulf of
         Mexico also continues to increase.  The Tanzanite field is currently
         producing 20,200 barrels of oil per day and 107 million cubic feet
         (MMcf) of natural gas per day.  The Hickory field is producing about
         125 MMcf of gas per day and 10,300 barrels of condensate per day from
         three wells.  A fourth well is nearing completion.
     --  Anadarko signed an agreement with SONATRACH in March to resume
         exploration activities in Algeria on Blocks 404, 208 and 211.  In
         addition, 3-D seismic acquisition for the ongoing development programs
         in Blocks 404 and 208 is nearing completion.  The Anadarko/SONATRACH
         association has discovered nearly 2.8 billion barrels of oil on these
         blocks since 1989.
     --  The company was nationally recognized for its outstanding performance
         by a number of outside sources.  For example, Anadarko was named No. 2
         overall in the "BusinessWeek" 50 -- a ranking of the best-performing
         companies over the last one and three years of the Standard & Poor's
         500.
 
     Houston-based Anadarko Petroleum Corporation is the world's largest
 independent E&P company, with proved reserves of more than 2 billion barrels
 of oil equivalent.  Domestically, it has operations in Texas, Louisiana, the
 Mid-Continent and Rocky Mountain regions, Alaska and in the shallow and deep
 waters of the Gulf of Mexico.  For the full-year 2000, Anadarko was the most
 active driller in North America.  Internationally, it is active in Canada,
 Algeria, Tunisia, West Africa, Venezuela, Georgia and the North Atlantic.
 
     Financial Data
     Three pages of summary financial data follow.
 
     2001 Annual Meeting of Stockholders
     The 2001 Annual Meeting of Stockholders will be held April 26, 9:30 a.m.
 CDT in Houston and will be webcast live at www.anadarko.com.  The meeting will
 also be available for rebroadcast via the web for the next two weeks.
 
     Earnings Conference Call
     Earnings Conference Call set for April 27 at 9:30 a.m. CDT.  More details
 available at www.anadarko.com.
 
     Anadarko Operations Report
     For more details on Anadarko's operations, please refer to the
 comprehensive report on individual wells drilled throughout the company during
 the first quarter.  The report is available on the company's website at
 www.anadarko.comin the News Bureau.
 
     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.  See Additional Factors Affecting Business in the
 Management's Discussion and Analysis (MD&A) included in the company's 2000
 Annual Report on Form 10-K.
 www.anadarko.com
 
                         Anadarko Petroleum Corporation
 
                                                          Quarter Ended
     Summary Financial Information *                   March 31      March 31
     $ and shares in millions                            2001         2000
     Revenues
     Gas sales                                       $  1,114     $    109
     Oil and condensate sales                             361          118
     Natural gas liquids sales                             73           42
     Marketing sales                                    1,500          391
     Minerals and other                                     3            1
     Total                                              3,051          661
     Costs and Expenses
     Marketing purchases and transportation             1,475          380
     Operating expenses                                   157           61
     Administrative and general                            49           30
     Depreciation, depletion and amortization             274           59
     Other taxes                                           83           12
     Impairments related to international properties        7          ---
     Amortization of goodwill                              17          ---
     Total                                              2,062          542
     Operating Income                                     989          119
     Other (Income) Expense
     Merger expenses                                       10          ---
     Interest expense                                      22           21
     Other (income) expense                               (96)         ---
     Total                                                (64)          21
     Income before Income Taxes                         1,053           98
     Income Taxes                                         389           47
     Net Income Before Cumulative Effect
      of Change in Accounting Principle              $    664     $     51
     Preferred Stock Dividend                               3            3
     Net Income Available to Common
      Stockholders Before Cumulative Effect
      of Change in Accounting Principle              $    661     $     48
     Cumulative Effect of Change
      in Accounting Principle                               5           17
     Net Income Available to Common Stockholders     $    656     $     31
     Per Common Share
     Net income - before change in accounting
      principle - basic                              $   2.64     $   0.37
     Net income - before change in accounting
      principle - diluted                            $   2.52     $   0.37
     Change in accounting principle - basic          $  (0.02)    $  (0.13)
     Change in accounting principle - diluted        $  (0.02)    $  (0.13)
     Net income - basic                              $   2.62     $   0.24
     Net income - diluted                            $   2.50     $   0.24
     Dividends                                       $   0.05     $   0.05
     Average Number of Shares Outstanding - Basic         250          128
     Average Number of Shares Outstanding - Diluted       263          131
 
     * Revenues and costs and expenses for 2000 reflect a reclassification of
       certain amounts related to the SEC's staff bulletin on revenue
       recognition.  Net income for 2000 also reflects a change in accounting
       principle related to accounting for foreign crude oil inventories.  Net
       income for 2001 reflects a change in accounting principle related to
       accounting for derivative instruments and hedging activities.
 
     Cash Flow from Operations before Changes in Assets and Liabilities
     Net income before cumulative effect
      of change in accounting principle              $    664    $      51
     Depreciation, depletion and amortization             274           59
     Amortization of goodwill                              17          ---
     Non-cash merger expenses                               3          ---
     Interest expense - zero coupon debentures              3            1
     Deferred income taxes                                209           24
     Impairments related to international properties        7          ---
     Other non-cash items                                 (60)         ---
     Total                                           $  1,117    $     135
     Capital Expenditures
     Capital spending                                $    571    $     157
     Capitalized interest                                  51            5
     Capitalized overhead                                  36           22
     Total                                           $    658    $     184
     Capitalization
     Total debt                                      $  4,905    $   1,573
     Stockholders' equity                               7,443        1,578
     Total                                           $ 12,348    $   3,151
     Capitalization Ratios
     Total debt                                            40%          50%
     Stockholders' equity                                  60%          50%
 
     * Revenues and costs and expenses for 2000 reflect a reclassification of
       certain amounts related to the SEC's staff bulletin on revenue
       recognition.  Net income for 2000 also reflects a change in accounting
       principle related to accounting for foreign crude oil inventories.  Net
       income for 2001 reflects a change in accounting principle related to
       accounting for derivative instruments and hedging activities.
 
 
                          Anadarko Petroleum Corporation
 
                                                            Quarter Ended
     Volumes and Prices                                        March 31
                                                       2001              2000
     Natural Gas
     United States
     Volumes, billion cubic feet                        139                44
     Average daily volumes, million cubic
      feet per day                                    1,548               486
     Price per thousand cubic feet                    $6.86             $2.46
     Canada
     Volumes, billion cubic feet                         24               ---
     Average daily volumes, million cubic
      feet per day                                      269               ---
     Price per thousand cubic feet                    $6.50              $---
     Other International
     Volumes, billion cubic feet                          1               ---
     Average daily volumes, million cubic
      feet per day                                        5               ---
     Price per thousand cubic feet                    $1.03              $---
     Total
     Volumes, billion cubic feet                        164                44
     Average daily volumes, million cubic
      feet per day                                    1,822               486
     Price per thousand cubic feet                    $6.79             $2.46
 
     Crude Oil and Condensate
     United States
     Volumes, million barrels                             8                 2
     Average daily volumes,
      thousand barrels per day                           89                20
     Price per barrel                                $25.44            $24.83
     Canada
     Volumes, million barrels                             3               ---
     Average daily volumes,
      thousand barrels per day                           31               ---
     Price per barrel                                $16.56              $---
     Algeria
     Volumes, million barrels                             2                 2
     Average daily volumes,
      thousand barrels per day                           25                29
     Price per barrel                                $25.12            $27.30
     Other International
     Volumes, million barrels                             4               ---
     Average daily volumes,
      thousand barrels per day                           41               ---
     Price per barrel                                $14.87              $---
     Total
     Volumes, million barrels                            17                 4
     Average daily volumes,
      thousand barrels per day                          186                49
     Price per barrel                                $21.59            $26.28
 
     Natural Gas Liquids
     Total
     Volumes, million barrels                             3                 2
     Average daily volumes, thousand
      barrels per day                                    36                22
     Price per barrel                                $22.54            $20.73
     Total Barrels of Oil Equivalent (BOE)
     Volumes, million BOEs                               47                14
 
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SOURCE Anadarko Petroleum Corporation
    HOUSTON, April 26 /PRNewswire/ -- Continuing its trend of increasing
 shareholder value and delivering on promised production growth and
 profitability, Anadarko Petroleum Corporation (NYSE:   APC) announced record
 financial results for the first quarter 2001.
     Anadarko had net income available to common stockholders of $656 million,
 or $2.50 per share (diluted) for the first quarter of 2001.  By comparison,
 for the first quarter 2000, the company reported net income available to
 common stockholders of $31 million, or 24 cents per share (diluted).
     Cash flow from operations during the first quarter of 2001 totaled
 $1.117 billion ($4.47 per share), a 727 percent increase over the
 $135 million ($1.06 per share) in the first quarter of 2000.
     "Our first quarter shows great growth, and we intend to continue growing
 with the drill bit.  We've set some very ambitious targets for the full year
 2001, and we're well on our way to achieving those goals," said Robert J.
 Allison, Jr., Anadarko Chairman and Chief Executive Officer.  "Our first
 quarter earnings of $656 million come within striking distance of earning
 almost as much as we did for all of 2000, which was $796 million."
     Significantly increased production, coupled with strong natural gas
 prices, contributed to the company's earnings growth.
     During the first quarter of 2001, Anadarko's production of natural gas,
 crude oil and natural gas liquids was 47 million barrels of oil equivalent
 (BOE), or 522,000 barrels a day, compared to 14 million BOE for first quarter
 2000.  The 236 percent increase in production volumes is attributed primarily
 to last year's acquisition of UPR and increased production from the company's
 operations in Texas, the Gulf of Mexico and Alaska.
     "Anadarko was the most active driller in North America last year and this
 past quarter -- and we achieved significant production growth, because we had
 the people and the prospects to take advantage of the thriving natural gas
 market when the time came.  Because we didn't lay off people over the lean
 years and concentrated on technology, we have a big inventory of prospects to
 drill," Allison said.
     "Profitable growth remains our primary focus at Anadarko," he added, "and
 we're continuing to pursue our goal of reaching 200 million barrels of
 production for 2001."
 
     Highlights
     --  Anadarko has increased its 2001 capital spending plan to $3 billion
         and will drill approximately 2,000 wells this year.  The company
         expects to complete an average of more than five wells per day for
         each day this year.
     --  On March 16, Anadarko completed the $1 billion acquisition of Berkley
         Petroleum Corp.  In addition to being a good fit with existing
         strategy, the deal is expected to be accretive to earnings and cash
         flow and added exploration and development projects.  It will fast-
         track the growth of Anadarko's Canadian oil and gas business.
     --  In East Texas, development of Anadarko's Bossier play -- the company's
         most active drilling area -- continued at a healthy pace with
         significant completions in the first quarter.  Anadarko currently has
         26 drilling rigs active in the Bossier area and expects to drill about
         220 wells there this year.
     --  In the March Gulf of Mexico Lease Sale No. 178, Anadarko was the
         apparent high bidder on 23 tracts covering 120,000 acres.  The new
         acreage, which represents an investment of $32 million for Anadarko,
         includes 16 deepwater blocks.  The tracts bring the company's total
         holdings to 353 leases in the Gulf of Mexico.
     --  Production from Anadarko's Tanzanite and Hickory fields in the Gulf of
         Mexico also continues to increase.  The Tanzanite field is currently
         producing 20,200 barrels of oil per day and 107 million cubic feet
         (MMcf) of natural gas per day.  The Hickory field is producing about
         125 MMcf of gas per day and 10,300 barrels of condensate per day from
         three wells.  A fourth well is nearing completion.
     --  Anadarko signed an agreement with SONATRACH in March to resume
         exploration activities in Algeria on Blocks 404, 208 and 211.  In
         addition, 3-D seismic acquisition for the ongoing development programs
         in Blocks 404 and 208 is nearing completion.  The Anadarko/SONATRACH
         association has discovered nearly 2.8 billion barrels of oil on these
         blocks since 1989.
     --  The company was nationally recognized for its outstanding performance
         by a number of outside sources.  For example, Anadarko was named No. 2
         overall in the "BusinessWeek" 50 -- a ranking of the best-performing
         companies over the last one and three years of the Standard & Poor's
         500.
 
     Houston-based Anadarko Petroleum Corporation is the world's largest
 independent E&P company, with proved reserves of more than 2 billion barrels
 of oil equivalent.  Domestically, it has operations in Texas, Louisiana, the
 Mid-Continent and Rocky Mountain regions, Alaska and in the shallow and deep
 waters of the Gulf of Mexico.  For the full-year 2000, Anadarko was the most
 active driller in North America.  Internationally, it is active in Canada,
 Algeria, Tunisia, West Africa, Venezuela, Georgia and the North Atlantic.
 
     Financial Data
     Three pages of summary financial data follow.
 
     2001 Annual Meeting of Stockholders
     The 2001 Annual Meeting of Stockholders will be held April 26, 9:30 a.m.
 CDT in Houston and will be webcast live at www.anadarko.com.  The meeting will
 also be available for rebroadcast via the web for the next two weeks.
 
     Earnings Conference Call
     Earnings Conference Call set for April 27 at 9:30 a.m. CDT.  More details
 available at www.anadarko.com.
 
     Anadarko Operations Report
     For more details on Anadarko's operations, please refer to the
 comprehensive report on individual wells drilled throughout the company during
 the first quarter.  The report is available on the company's website at
 www.anadarko.comin the News Bureau.
 
     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.  See Additional Factors Affecting Business in the
 Management's Discussion and Analysis (MD&A) included in the company's 2000
 Annual Report on Form 10-K.
 www.anadarko.com
 
                         Anadarko Petroleum Corporation
 
                                                          Quarter Ended
     Summary Financial Information *                   March 31      March 31
     $ and shares in millions                            2001         2000
     Revenues
     Gas sales                                       $  1,114     $    109
     Oil and condensate sales                             361          118
     Natural gas liquids sales                             73           42
     Marketing sales                                    1,500          391
     Minerals and other                                     3            1
     Total                                              3,051          661
     Costs and Expenses
     Marketing purchases and transportation             1,475          380
     Operating expenses                                   157           61
     Administrative and general                            49           30
     Depreciation, depletion and amortization             274           59
     Other taxes                                           83           12
     Impairments related to international properties        7          ---
     Amortization of goodwill                              17          ---
     Total                                              2,062          542
     Operating Income                                     989          119
     Other (Income) Expense
     Merger expenses                                       10          ---
     Interest expense                                      22           21
     Other (income) expense                               (96)         ---
     Total                                                (64)          21
     Income before Income Taxes                         1,053           98
     Income Taxes                                         389           47
     Net Income Before Cumulative Effect
      of Change in Accounting Principle              $    664     $     51
     Preferred Stock Dividend                               3            3
     Net Income Available to Common
      Stockholders Before Cumulative Effect
      of Change in Accounting Principle              $    661     $     48
     Cumulative Effect of Change
      in Accounting Principle                               5           17
     Net Income Available to Common Stockholders     $    656     $     31
     Per Common Share
     Net income - before change in accounting
      principle - basic                              $   2.64     $   0.37
     Net income - before change in accounting
      principle - diluted                            $   2.52     $   0.37
     Change in accounting principle - basic          $  (0.02)    $  (0.13)
     Change in accounting principle - diluted        $  (0.02)    $  (0.13)
     Net income - basic                              $   2.62     $   0.24
     Net income - diluted                            $   2.50     $   0.24
     Dividends                                       $   0.05     $   0.05
     Average Number of Shares Outstanding - Basic         250          128
     Average Number of Shares Outstanding - Diluted       263          131
 
     * Revenues and costs and expenses for 2000 reflect a reclassification of
       certain amounts related to the SEC's staff bulletin on revenue
       recognition.  Net income for 2000 also reflects a change in accounting
       principle related to accounting for foreign crude oil inventories.  Net
       income for 2001 reflects a change in accounting principle related to
       accounting for derivative instruments and hedging activities.
 
     Cash Flow from Operations before Changes in Assets and Liabilities
     Net income before cumulative effect
      of change in accounting principle              $    664    $      51
     Depreciation, depletion and amortization             274           59
     Amortization of goodwill                              17          ---
     Non-cash merger expenses                               3          ---
     Interest expense - zero coupon debentures              3            1
     Deferred income taxes                                209           24
     Impairments related to international properties        7          ---
     Other non-cash items                                 (60)         ---
     Total                                           $  1,117    $     135
     Capital Expenditures
     Capital spending                                $    571    $     157
     Capitalized interest                                  51            5
     Capitalized overhead                                  36           22
     Total                                           $    658    $     184
     Capitalization
     Total debt                                      $  4,905    $   1,573
     Stockholders' equity                               7,443        1,578
     Total                                           $ 12,348    $   3,151
     Capitalization Ratios
     Total debt                                            40%          50%
     Stockholders' equity                                  60%          50%
 
     * Revenues and costs and expenses for 2000 reflect a reclassification of
       certain amounts related to the SEC's staff bulletin on revenue
       recognition.  Net income for 2000 also reflects a change in accounting
       principle related to accounting for foreign crude oil inventories.  Net
       income for 2001 reflects a change in accounting principle related to
       accounting for derivative instruments and hedging activities.
 
 
                          Anadarko Petroleum Corporation
 
                                                            Quarter Ended
     Volumes and Prices                                        March 31
                                                       2001              2000
     Natural Gas
     United States
     Volumes, billion cubic feet                        139                44
     Average daily volumes, million cubic
      feet per day                                    1,548               486
     Price per thousand cubic feet                    $6.86             $2.46
     Canada
     Volumes, billion cubic feet                         24               ---
     Average daily volumes, million cubic
      feet per day                                      269               ---
     Price per thousand cubic feet                    $6.50              $---
     Other International
     Volumes, billion cubic feet                          1               ---
     Average daily volumes, million cubic
      feet per day                                        5               ---
     Price per thousand cubic feet                    $1.03              $---
     Total
     Volumes, billion cubic feet                        164                44
     Average daily volumes, million cubic
      feet per day                                    1,822               486
     Price per thousand cubic feet                    $6.79             $2.46
 
     Crude Oil and Condensate
     United States
     Volumes, million barrels                             8                 2
     Average daily volumes,
      thousand barrels per day                           89                20
     Price per barrel                                $25.44            $24.83
     Canada
     Volumes, million barrels                             3               ---
     Average daily volumes,
      thousand barrels per day                           31               ---
     Price per barrel                                $16.56              $---
     Algeria
     Volumes, million barrels                             2                 2
     Average daily volumes,
      thousand barrels per day                           25                29
     Price per barrel                                $25.12            $27.30
     Other International
     Volumes, million barrels                             4               ---
     Average daily volumes,
      thousand barrels per day                           41               ---
     Price per barrel                                $14.87              $---
     Total
     Volumes, million barrels                            17                 4
     Average daily volumes,
      thousand barrels per day                          186                49
     Price per barrel                                $21.59            $26.28
 
     Natural Gas Liquids
     Total
     Volumes, million barrels                             3                 2
     Average daily volumes, thousand
      barrels per day                                    36                22
     Price per barrel                                $22.54            $20.73
     Total Barrels of Oil Equivalent (BOE)
     Volumes, million BOEs                               47                14
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38114378
 
 SOURCE  Anadarko Petroleum Corporation

RELATED LINKS

http://www.anadarko.com