Anadarko Announces Financial and Operating Results for 2002.Energy Editors/Business Editors HOUSTON--(BUSINESS WIRE)--Jan. 31, 2003 Anadarko Petroleum Corporation Anadarko Petroleum Corporation (NYSE: APC) is one of the world’s largest independent oil and gas exploration and production companies, with 2.37 billion barrels of oil equivalent (BOE) of proved reserves and a production of 190 million BOE in 2004. Ranked No. (NYSE NYSE See: New York Stock Exchange :APC (1) (American Power Conversion Corporation, West Kingston, RI, www.apcc.com) The leading manufacturer of UPS systems and surge suppressors, founded in 1981 by Rodger Dowdell, Neil Rasmussen and Emanual Landsman, three electronic power engineers who had worked at MIT. ) -- 4th quarter earnings above consensus due to higher-than-expected volumes -- Replaced reserves for the 21st consecutive year -- U.S. finding & development costs of $7.77 per BOE -- Exploration success in Texas, Louisiana, Canada, the Gulf of Mexico and Algeria INSIDE: Financial & Operating Results Conference Call Information Summary Financials Sales Volumes & Prices Oil & Gas Reserves Costs Incurred in Oil & Gas Producing Activities Anadarko Petroleum Corporation (NYSE:APC) today announced financial results for the fourth quarter and full year 2002 and operating results from worldwide exploration and development drilling activity. FOURTH QUARTER 2002 For the fourth quarter of 2002, the company reported net income available to common shareholders of $309 million, or $1.21 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared with earnings of $108 million, or 41 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. (diluted)(1) for the fourth quarter of 2001. The increase in earnings is primarily due to higher commodity prices and higher oil sales volumes, which were partly offset by lower natural gas sales volumes. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before changes in assets and liabilities for the fourth quarter of 2002 totaled $713 million, or $2.76 per share (diluted), compared with $528 million, or $1.99 per share (diluted), for the same period in 2001. Sales volumes during the fourth quarter of 2002 were flat compared to the same period in 2001 at about 49 million barrels of oil equivalent (BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ). Production increases in Algeria Algeria (ăljēr`ēə), Arab. Al Djazair, Fr. Algérie, officially People's Democratic Republic of Algeria, republic (2005 est. pop. , Wyoming Wyoming, city, United States Wyoming, city (1990 pop. 63,891), Kent co., W Mich., in the greater Grand Rapids metropolitan area, on the Grand River; settled 1832, inc. 1959. and Western Canada
Western Canada, commonly referred to as the West were offset by the effects of natural field declines and asset sales, along with two hurricanes in the Gulf. FULL YEAR 2002 For the full year 2002, Anadarko reported net income available to common shareholders of $825 million, or $3.21 per share (diluted), on revenues of $3.86 billion, compared with a net loss of $188 million, or 75 cents per share (diluted)(1), on revenues of $4.72 billion(2) for 2001. Results for 2001 included the effect of a $1.57 billion non-cash, after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of oil and gas properties. Excluding the effect of the impairment, 2001 earnings were $1.38 billion, or $5.21 per share (diluted). Earnings in 2002 were lower compared with 2001 excluding the impairment mainly because natural gas prices were 33 percent lower in 2002 compared with 2001. Cash flow from operations before changes in assets and liabilities for 2002 totaled $2.21 billion, or $8.52 per share (diluted), compared with $3.43 billion, or $12.89 per share (diluted) in 2001. Total natural gas, crude oil and natural gas liquids sales volumes for 2002 were 197 million BOE, compared with 199 million BOE in the prior year. Despite the modest decline in annual production, the company achieved growth in several areas of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , taking into account the effect of divestitures of producing properties in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Texas and Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. in 2002."We had a successful 2002, despite a challenging market environment in the first half of the year," said John Seitz Seitz may refer to:
"We had expected 2002 to be an 'opportunity building' year and it was. By executing our strategic plan, we more than replaced our production with new reserves, made several good discoveries and an important acquisition that will add to our production and reserves in 2003 and in the future, and built a strong inventory of drilling locations," Seitz said. "Despite production losses due to two hurricanes and the strikes in Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. , we beat our target of 196 million BOE. "With stronger commodity prices - and still reasonable drilling and service costs - we're we're Contraction of we are. we're we are ready to start growing production again, and we're well positioned to do that in 2003 and 2004," Seitz said. "Nearly two-thirds of our 2003 capital budget of $2.3 billion is devoted to development projects. This budget also enables us to test significant exploration potential, particularly in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east and in several international basins," he added. FOURTH QUARTER 2002 OPERATING HIGHLIGHTS -- Anadarko announced in January January: see month. 2003 its first Algerian discovery since the company signed a new exploration agreement in mid- mid- pref. Middle: midbrain. 2002. The Hassi Berkine North East No. 1 on Block 404 of the Berkine Basin BASIN Boulder Area Sustainability Information Network (Boulder, Colorado) BASIN Brothers And Sisters In Need was drilled to a total depth of 10,700 feet at a location three miles east of the Hassi Berkine field. The well encountered 53 feet of net pay in the TAGI reservoir reservoir (rĕz`əvôr, -vwär), storage tank or wholly or partly artificial lake for storing water. Building an embankment or dam to preserve a supply of water for irrigation is an ancient practice; India and Egypt have many old and and tested at a rate of 4,092 barrels of oil and 6.7 million cubic feet (MMcf) of gas per day. -- In the northern portion of the Vernon field Vernon Field is a fictional character in the Batman maxi-series . History Vernon appears to be meek and unassuming. In reality, however, he is cunning and extremely corrupt, a tool of Gotham City's gangsters. in North Louisiana, Anadarko completed its best-producing well to date in that field, the Nix 2-1, which had initial production of 24.7 MMcf of natural gas per day. -- In early December December: see month. 2002, Anadarko completed the acquisition of Howell How´ell n. 1. The upper stage of a porcelian furnace. Corporation for about $258 million in cash and debt assumed from Howell. The purchase gives Anadarko additional opportunities for reserve and production growth through enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2] and other exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. activities in the Salt Creek Salt Creek refers to:
-- During the fourth quarter, Anadarko agreed to sell 300 non-core properties in Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: Pecos (pā`kəs), city (1990 pop. 12,069), seat of Reeves co., W Tex., on the Pecos River; inc. 1903. Production Company for $41 million. The sale closed in January 2003. -- Anadarko and Warren Warren. 1 City (1990 pop. 144,864), Macomb co., SE Mich., a suburb of Detroit; est. 1837, inc. as a city 1957. It is an important metalworking center where steel is processed. Resources agreed to jointly explore for and develop coalbed methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. resources in the Atlantic Rim (Research In Motion Limited, Waterloo, Ontario, www.rim.com) The company that makes the popular BlackBerry device. It was established in 1984. See BlackBerry. See also RDRAM. area of the Washakie Washakie (?1804–1900) Shoshone chief; born in the Green River Valley of present-day eastern Utah and southern Wyoming. He assisted early trappers, traders, and settlers, and fought with the U.S.A. Basin in Southern Wyoming. The area of mutual interest covers approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 211,000 acres in Carbon County. During 2003, Anadarko expects to drill 30 wells in this area. RESERVE REPLACEMENT Anadarko's worldwide reserve replacement rate from all sources was 112 percent of annual production, with 219 million BOE of new reserves added. This figure includes the effect of reserve changes from all sources - drilling, producing property acquisitions and divestitures, and revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to earlier estimates. This is the 21st consecutive year that Anadarko has more than replaced annual production with new proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. . Excluding acquisitions and divestitures in 2002 and the effect of a downward revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. of Venezuelan reserves described below, the company replaced 106 percent of its 2002 production. Significant reserves were added in the Gulf of Mexico, Wyoming, Texas, Louisiana and Canada. In the U.S. alone, Anadarko achieved a 185 percent reserve replacement rate. Excluding acquisitions and divestitures - principally the Howell acquisition, partly offset by several small divestitures - the company replaced 137 percent of its U.S. production. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , the company recorded a downward revision of 36 million barrels - representing roughly 16 percent of total 2002 reserve additions - from the Oritupano-Leona oilfield in Venezuela due to current prices. Under the terms of Anadarko's risk service contract with the national oil company of Venezuela, Anadarko earns a fee that is translated into barrels of oil based on current prices. This means that higher oil prices actually reduce the company's reported oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally and production volumes from that project; however, reserve and production fluctuations caused by current prices and reported using the economic interest calculation have essentially no impact on cash flow or the value of the project. The company's worldwide replacement rate for the five-year period 1998-2002 was 368 percent of production, or 187 percent excluding the effect of acquisitions and divestitures. Anadarko's U.S. reserve replacement rate for the five-year period 1998-2002 was 325 percent, or 179 percent excluding acquisitions and divestitures, versus a five-year industry average of 111 percent for 1997-2001, which is the latest available data (source: U.S. Department of Energy). PROVED RESERVES Anadarko increased proved reserves worldwide by 1 percent to 2.33 billion BOE at year-end 2002, from 2.30 billion BOE at year-end 2001. In the U.S., proved reserves increased by 111 million BOE primarily from discoveries and the acquisition of Howell. On a worldwide basis, the U.S. increase was partly offset by the effect of asset sales, performance revisions and the significant downward revision in Venezuela. -- U.S. - Domestic proved reserves were 1.53 billion BOE at year-end, representing 66 percent of total worldwide reserves. U.S. reserves were up 8 percent from the 1.41 billion BOE at the end of 2001, or 61 percent of total reserves. -- Canada - The sale of heavy oil properties containing 28 million BOE of reserves in the fourth quarter of 2002 was responsible for reduced Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. proved reserves, which declined to 288 million BOE at year-end, from 315 million BOE at year-end 2001. -- Algeria - Oil reserves in Algeria were 372 million barrels at year-end 2002, down from 387 million barrels the prior year. The company added 8 million barrels of reserves during 2002, partly offsetting production of 23 million barrels. The company resumed exploration in Algeria last year after a five-year hiatus hiatus /hi·a·tus/ (hi-a´tus) [L.] an opening, gap, or cleft.hia´tal aortic hiatus the opening in the diaphragm through which the aorta and thoracic duct pass. . -- Worldwide - Anadarko's proved reserves were nearly balanced between crude oil, condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. and liquids (49 percent) and natural gas (51 percent). Proved reserves of oil and liquids totaled 1.13 billion barrels at year-end 2002, the same as a year earlier. Proved natural gas reserves at year-end 2002 totaled 7.18 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. cubic feet (Tcf), up from 7.03 Tcf in 2001. Of this amount, 98 percent is located in the U.S. and Canada. -- Acquisitions and Divestitures - Acquisitions of producing properties - principally the Howell properties in Wyoming and BP's interest in an Anadarko-operated oilfield in Qatar Qatar or Katar (both: kŭ`tər, gŭ–, kətär`), officially State of Qatar, independent emirate (2005 est. pop. 863,000), c. - added 87 million BOE of reserves in 2002. Divestitures - mainly heavy oil assets in Western Canada, non-core properties in South Texas and South Louisiana, and non-producing gas properties in the Cook Inlet Cook Inlet Inlet, Gulf of Alaska in the northern Pacific Ocean. Bounded by the Kenai Peninsula on the east, it extends northeast for 220 mi (350 km), narrowing from 80 to 9 mi (129 to 14 km). Anchorage is situated near its head. of Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States - totaled 39 million BOE of reserves. FINDING & DEVELOPMENT COSTS Anadarko's total worldwide finding costs for proved reserves averaged $10.52 per BOE in 2002, reflecting all costs of additions from drilling, property acquisitions and the effect of reserve revisions. "This one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants finding and development cost number doesn't does·n't Contraction of does not. accurately reflect the exploration successes we achieved in some key areas in 2002," Seitz said. "For example, in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , which is our single largest focus area, finding and development costs came in at $7.77 per BOE," Seitz said. "This reflects successful drilling in core areas such as Texas, Louisiana, Wyoming and the expansion of plays in the Gulf of Mexico. The purchase of new properties in Wyoming last year also added low-cost reserves with high potential for expanding future production and reserves," he noted. "Several factors contributed to the higher one-year worldwide finding costs, but two had the greatest impact, adding nearly $2 a barrel barrel: see English units of measurement. to overall finding costs," Seitz said. "The revision of Venezuelan reserves combined with large investments made in leases in the eastern Gulf of Mexico - which have not yet been drilled - raised our costs," Seitz said. "If you excluded these two factors, our finding and development costs would have been about $8.75 per BOE in 2002. "We expect 2003 finding costs to be lower - probably in the $7 per BOE range," he noted. Anadarko added reserves of 87 million BOE through property acquisitions during 2002 at an average price of $4.82 per BOE. The company sold 39 million BOE of non-core or low-margin reserves at an average price of $5.85 per BOE. 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. (1) In January 2002, Anadarko discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the amortization of goodwill in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." Stated without amortization of goodwill, net income for the fourth quarter of 2001 would have been $124 million (47 cents per share - diluted) and the net loss for 2001 would have been $115 million (46 cents per share - diluted). (2) In the third quarter of 2002, the Company adopted Emerging Issues Task Force (EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation ) Issue No. 02-3, "Recognition and Reporting of Gains and Losses on Energy Trading Contracts." In accordance with EITF 02-3, marketing sales and purchases for prior periods have been reclassified to show net marketing margins as revenues. The marketing margins related to the Company's equity production are included in Gas Sales, Oil Sales and Natural Gas Liquids Sales and are reflected in commodity prices. The marketing margin related to purchases of third-party commodities is shown as Purchased Commodity Sales, which is included in Other Sales Revenue. This reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. has no effect on reported net income or cash flow. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 recoverable reserves, which the SEC guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. do not allow us to include in filings with the SEC. See Additional Factors Affecting Business in the Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial included in the company's 2001 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . EARNINGS CONFERENCE CALL TODAY AT 11 A.M. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. , 12 P.M. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. Anadarko will host an earnings conference call today at 11 a.m. Central Standard Time (12 p.m. Eastern Standard Time) to discuss 2002 results and the company's outlook for 2003. The dial-in number is 913/981-4900, and the confirmation number is 717731. For complete instructions on how to participate in the conference call, visit our website at www.anadarko.com. A comprehensive report highlighting Anadarko's fourth quarter and full year of operations for 2002 will be available later this morning on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page.
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Summary Financial Information (a) December 31 December 31
--------------- ----------------
$ and shares in millions 2002 2001 2002 2001
----------------------------------------------------------------------
Revenues
----------------------------------------------------------------------
Gas sales $541 $451 $1,835 $2,952
Oil and condensate sales 484 268 1,690 1,397
Natural gas liquids sales 66 46 222 256
Other sales 26 33 113 113
----------------------------------------------------------------------
Total 1,117 798 3,860 4,718
----------------------------------------------------------------------
Costs and Expenses
----------------------------------------------------------------------
Operating expenses 192 197 747 769
Administrative and general 87 67 314 247
Depreciation, depletion and
amortization 292 255 1,121 1,154
Other taxes 46 44 214 247
Impairments related to oil and gas
properties 6 3 39 2,546
Amortization of goodwill - 16 - 73
----------------------------------------------------------------------
Total 623 582 2,435 5,036
----------------------------------------------------------------------
Operating Income (Loss) 494 216 1,425 (318)
----------------------------------------------------------------------
Other (Income) Expense
----------------------------------------------------------------------
Merger expenses - 9 - 45
Interest expense 57 27 203 92
Other (income) expense 4 26 15 (65)
----------------------------------------------------------------------
Total 61 62 218 72
----------------------------------------------------------------------
Income (Loss) before Income Taxes 433 154 1,207 (390)
----------------------------------------------------------------------
Income Taxes
----------------------------------------------------------------------
Income taxes 122 45 376 (183)
Effect of change in Canadian income
tax rate - - - (31)
----------------------------------------------------------------------
Total 122 45 376 (214)
----------------------------------------------------------------------
Net Income (Loss) Before Cumulative
Effect of Change in
Accounting Principle $311 $109 $831 $(176)
----------------------------------------------------------------------
Preferred Stock Dividends 2 1 6 7
----------------------------------------------------------------------
Net Income (Loss) Available to Common
Stockholders Before Cumulative Effect
of Change in Accounting Principle $309 $108 $825 $(183)
----------------------------------------------------------------------
Cumulative Effect of Change in
Accounting Principle - - - 5
----------------------------------------------------------------------
Net Income (Loss) Available to Common
Stockholders $309 $108 $825 $(188)
----------------------------------------------------------------------
Per Common Share
----------------------------------------------------------------------
Net income (loss) - before change in
accounting principle - basic $1.25 $0.43 $3.32 $(0.73)
Net income (loss) - before change in
accounting principle - diluted $1.21 $0.41 $3.21 $(0.73)
Change in accounting principle -
basic $- $- $- $(0.02)
Change in accounting principle -
diluted $- $- $- $(0.02)
Net income (loss) - basic $1.25 $0.43 $3.32 $(0.75)
Net income (loss) - diluted $1.21 $0.41 $3.21 $(0.75)
Dividends $0.10 $0.075 $0.325 $0.225
----------------------------------------------------------------------
Average Number of Common Shares
Outstanding - Basic 249 249 248 250
----------------------------------------------------------------------
Average Number of Common Shares
Outstanding - Diluted 258 266 260 250
----------------------------------------------------------------------
(a) Net loss for the year ended December 31, 2001 reflects a change in
accounting principle related to accounting for derivative
instruments and hedging activities.
In accordance with EITF 02-3 adopted in the third quarter 2002,
marketing revenues and purchases are presented net within
revenues. The marketing margin related to Anadarko's equity
production is included in gas sales, oil sales and natural gas
liquids sales. The marketing margin related to purchases of third
party commodities is included in other sales. Prior period results
have been reclassified to conform to the current presentation.
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Summary Financial Information December 31 December 31
------------- -----------------
$ in millions 2002 2001 2002 2001
----------------------------------------------------------------------
Cash Flow from Operations before
Changes in Assets and Liabilities
----------------------------------------------------------------------
Net income (loss) before cumulative
effect of change in accounting
principle $311 $109 $831 $(176)
Depreciation, depletion and
amortization 292 255 1,121 1,154
Amortization of goodwill - 16 - 73
Amortization of restricted stock 3 - 13 1
Non-cash merger expenses - 4 - 15
Interest expense - zero coupon
debentures 3 4 13 13
Deferred income taxes 98 93 214 (319)
Impairments related to oil and gas
properties 6 3 39 2,546
Other non-cash items - 44 (19) 122
----------------------------------------------------------------------
Total $713 $528 $2,212 $3,429
----------------------------------------------------------------------
----------------------------------------------------------------------
Capital Expenditures
----------------------------------------------------------------------
Capital spending $476 $958 $2,037 $2,929
Capitalized interest 34 53 155 209
Capitalized overhead 48 52 196 178
----------------------------------------------------------------------
Total $558 $1,063 $2,388 $3,316
----------------------------------------------------------------------
----------------------------------------------------------------------
Condensed Balance Sheet
----------------------------------------------------------------------
Current assets $1,280 $1,201
Net properties and equipment 15,098 13,637
Other assets 436 503
Goodwill 1,434 1,430
----------------------------------------------------------------------
Total Assets $18,248 $16,771
----------------------------------------------------------------------
Current liabilities $1,861 $1,801
Long-term debt 5,171 4,638
Other long-term liabilities 4,244 3,967
Stockholders' equity 6,972 6,365
Commitments and contingencies - -
----------------------------------------------------------------------
Total Liabilities and Stockholders'
Equity $18,248 $16,771
----------------------------------------------------------------------
Capitalization
----------------------------------------------------------------------
Total debt $5,471 $5,050
Stockholders' equity 6,972 6,365
----------------------------------------------------------------------
Total $12,443 $11,415
----------------------------------------------------------------------
Capitalization Ratios
----------------------------------------------------------------------
Total debt 44% 44%
Stockholders' equity 56% 56%
----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Volumes and Prices(a) December 31 December 31
--------------- ---------------
2002 2001 2002 2001
---------------------------------------------------------------------
Natural Gas
---------------------------------------------------------------------
United States
---------------------------------------------------------------------
Volumes, billion cubic feet 119 139 507 573
Average daily volumes, million cubic
feet per day 1,295 1,514 1,390 1,569
Price per thousand cubic feet $3.48 $2.52 $2.84 $4.23
---------------------------------------------------------------------
Canada
---------------------------------------------------------------------
Volumes, billion cubic feet 36 32 135 121
Average daily volumes, million cubic
feet per day 387 347 370 331
Price per thousand cubic feet $3.57 $3.09 $2.93 $4.38
---------------------------------------------------------------------
Other International
---------------------------------------------------------------------
Volumes, billion cubic feet - - - 1
Average daily volumes, million cubic
feet per day - 2 - 4
Price per thousand cubic feet $- $1.08 $- $1.22
---------------------------------------------------------------------
Total
---------------------------------------------------------------------
Volumes, billion cubic feet 155 171 642 695
Average daily volumes, million cubic
feet per day 1,682 1,863 1,760 1,904
Price per thousand cubic feet $3.50 $2.63 $2.86 $4.25
---------------------------------------------------------------------
Crude Oil and Condensate
---------------------------------------------------------------------
United States
---------------------------------------------------------------------
Volumes, million barrels 8 8 31 34
Average daily volumes, thousand
barrels per day 84 92 85 93
Price per barrel $25.03 $17.92 $23.07 $23.08
---------------------------------------------------------------------
Canada
---------------------------------------------------------------------
Volumes, million barrels 2 3 12 13
Average daily volumes, thousand
barrels per day 19 35 33 35
Price per barrel $20.86 $14.36 $19.31 $18.18
---------------------------------------------------------------------
Algeria
---------------------------------------------------------------------
Volumes, million barrels 8 2 24 8
Average daily volumes, thousand
barrels per day 87 19 65 22
Price per barrel $25.99 $20.35 $24.38 $23.97
---------------------------------------------------------------------
Other International
---------------------------------------------------------------------
Volumes, million barrels 2 3 8 13
Average daily volumes, thousand
barrels per day 24 29 22 36
Price per barrel $21.50 $13.01 $19.92 $14.35
---------------------------------------------------------------------
Total
---------------------------------------------------------------------
Volumes, million barrels 20 16 75 68
Average daily volumes, thousand
barrels per day 214 175 205 186
Price per barrel $24.67 $16.64 $22.55 $20.56
---------------------------------------------------------------------
Natural Gas Liquids
---------------------------------------------------------------------
Total
---------------------------------------------------------------------
Volumes, million barrels 4 4 15 15
Average daily volumes, thousand
barrels per day 41 44 41 42
Price per barrel $17.47 $11.50 $14.80 $16.55
---------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
---------------------------------------------------------------------
Volumes, million BOE 49 49 197 199
Average daily volumes, thousand BOE
per day 535 529 539 546
---------------------------------------------------------------------
(a) In accordance with EITF 02-3 adopted in the third quarter of 2002,
the marketing margin related to Anadarko's equity production is
included in gas sales, oil sales and natural gas liquids sales and
is reflected in the sales prices shown above. Prior period results
have been reclassified to conform to the current presentation.
Anadarko Petroleum Corporation
Oil and Gas Reserves
Total
(MMBOE)
------------------------------------
Other
U.S. Canada Algeria Int'l Total
---------------------------------------------------------------------
Proved Reserves
---------------------------------------------------------------------
December 31, 2001 1,415 315 387 188 2,305
---------------------------------------------------------------------
Revisions of prior estimates 46 (23) 5 (51) (23)
Extensions, discoveries and other
additions 124 59 3 - 186
Improved recovery 8 - - - 8
Purchases in place 74 - - 13 87
Sales in place (11) (28) - - (39)
Production (130) (35) (23) (8) (196)
---------------------------------------------------------------------
December 31, 2002 1,526 288 372 142 2,328
---------------------------------------------------------------------
---------------------------------------------------------------------
Proved Developed Reserves
---------------------------------------------------------------------
December 31, 2001 1,029 250 154 72 1,505
December 31, 2002 1,093 212 191 72 1,568
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Natural Gas
(Bcf)
------------------------------------
Other
U.S. Canada Algeria Int'l Total
---------------------------------------------------------------------
Proved Reserves
---------------------------------------------------------------------
December 31, 2001 5,648 1,241 - 146 7,035
---------------------------------------------------------------------
Revisions of prior estimates 78 (42) - (2) 34
Extensions, discoveries and other
additions 445 303 - - 748
Improved recovery (6) - - - (6)
Purchases in place 86 1 - - 87
Sales in place (53) (25) - - (78)
Production (505) (135) - - (640)
---------------------------------------------------------------------
December 31, 2002 5,693 1,343 - 144 7,180
---------------------------------------------------------------------
---------------------------------------------------------------------
Proved Developed Reserves
---------------------------------------------------------------------
December 31, 2001 4,247 1,028 - - 5,275
December 31, 2002 4,299 995 - - 5,294
---------------------------------------------------------------------
Oil, Condensate and NGLs
(MMBbls)
------------------------------------
Other
U.S. Canada Algeria Int'l Total
---------------------------------------------------------------------
Proved Reserves
---------------------------------------------------------------------
December 31, 2001 473 108 387 164 1,132
---------------------------------------------------------------------
Revisions of prior estimates 33 (15) 5 (52) (29)
Extensions, discoveries and other
additions 51 8 3 - 62
Improved recovery 8 - - - 8
Purchases in place 60 - - 13 73
Sales in place (2) (24) - - (26)
Production (45) (13) (23) (8) (89)
---------------------------------------------------------------------
December 31, 2002 578 64 372 117 1,131
---------------------------------------------------------------------
---------------------------------------------------------------------
Proved Developed Reserves
---------------------------------------------------------------------
December 31, 2001 321 79 154 72 626
December 31, 2002 377 46 191 72 686
---------------------------------------------------------------------
Anadarko Petroleum Corporation
Costs Incurred in Oil & Gas Producing Activities
millions 2002
----------------------------------------------------------------------
United States - Capitalized
Property acquisition
Exploration $341
Development 248
Exploration 654
Development 715
----------------------------------------------------------------------
Total United States 1,958
----------------------------------------------------------------------
Canada - Capitalized
Property acquisition
Exploration 25
Development 3
Exploration 138
Development 237
----------------------------------------------------------------------
Total Canada 403
----------------------------------------------------------------------
Algeria - Capitalized
Exploration 15
Development 140
----------------------------------------------------------------------
Total Algeria 155
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Other International - Capitalized
Property acquisition
Exploration 11
Development 26
Exploration 54
Development 108
----------------------------------------------------------------------
Total Other International 199
----------------------------------------------------------------------
Total - Capitalized
Property acquisition
Exploration 377
Development 277
Exploration 861
Development 1,200
----------------------------------------------------------------------
Total $2,715
----------------------------------------------------------------------
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