Anadarko Announces Second-Quarter 2007 Earnings.HOUSTON -- 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. ) today announced second-quarter 2007 net income available to common stockholders totaled $652 million, or $1.39 per share (diluted). Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the totaled $645 million, or $1.38 per share (diluted). These results include unrealized losses on derivatives of $35 million after tax, or $.08 per share (diluted); a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $27 million after tax, or $.06 per share (diluted); realized gains on derivatives of $82 million after tax, or $.17 per share (diluted); and a gain from the sale of certain midstream assets of $126 million after tax, or $.27 per share (diluted). Cash flow from continuing operations in the second quarter of 2007 was $229 million and discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. totaled $174 million(1). Income tax payments made in the second quarter of 2007 associated with the divestiture program reduced both cash flow from continuing operations and discretionary cash flow by approximately $1.1 billion. In the 2006 second quarter, net income available to common stockholders was $814 million, or $1.76 per share (diluted), while income from continuing operations totaled $663 million, or $1.43 per share (diluted). Adjustments to estimated future tax liabilities resulting from tax law changes contributed $148 million, or $.32 per share (diluted), to net income, while contributing $69 million, or $.15 per share (diluted), to income from continuing operations in the 2006 second quarter. "We are pleased with our second-quarter operating and financial results," Anadarko Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jim Hackett said. "Our retained properties are performing very well. Based on the demonstrated performance of the portfolio, combined with our expectations from Independence Hub, we are raising the production guidance for our continuing portfolio again, to between 189 million barrels and 193 million barrels of oil equivalent for the year - an increase of 3 million barrels from the previous midpoint mid·point n. 1. Mathematics The point of a line segment or curvilinear arc that divides it into two parts of the same length. 2. A position midway between two extremes. ." Second-quarter 2007 sales volumes of natural gas, crude oil and natural gas liquids totaled 52 million barrels of oil equivalent (BOE), or 574,000 BOE per day, compared with second-quarter 2006 sales volumes from continued operations of 36 million BOE, or 392,000 BOE per day. Second-quarter 2007 natural gas sales volumes averaged 1.80 billion cubic feet per day, at an average price of $7.10 per thousand cubic feet. Oil sales volumes in the second quarter averaged 227,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. , at an average price of $60.43 per barrel. Natural gas liquids sales volumes averaged 47,000 barrels per day, at an average price of $41.88 per barrel. CONFERENCE CALL TOMORROW AT 9 A.M. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT , 10 A.M. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT Anadarko will host a conference call on Tuesday, July 31, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss second-quarter results and the company's outlook for 2007. The dial-in number is 913.981.4910, and the confirmation number is 7477001. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will also be available on the website for approximately 30 days following the conference call. ANADARKO OPERATIONS REPORT For more details on Anadarko's operations, please refer to the comprehensive report on second-quarter activity. The report will be available at www.anadarko.com on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page. FINANCIAL DATA Nine pages of summary financial data follow, including current hedge positions, guidance and supplemental production guidance for the retained assets. Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2006, the company had 3.0 billion barrels-equivalent of 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. , making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com. (1)See the accompanying table for a reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to non-GAAP financial measures and a 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 such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to successfully meet its revised production guidance, complete its announced asset divestitures, successfully create and market an initial public offering of a midstream Master Limited Partnership, and achieve Anadarko's debt reduction goals. See "Risk Factors" in the company's 2006 Annual Report on Form 10-K and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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