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ANADARKO REPORTS FOURTH QUARTER AND ANNUAL 1991 RESULTS

 ANADARKO REPORTS FOURTH QUARTER AND ANNUAL 1991 RESULTS
 HOUSTON, Feb. 3 /PRNewswire/ -- Anadarko Petroleum Corporation


(NYSE: APC) announced today fourth quarter net income of $19.0 million (35 cents per share) on revenues of $110.6 million compared to $28.0 million (51 cents per share) on revenues of $126.9 million in the fourth quarter of 1990. Anadarko's financial results for the fourth quarter decreased because of lower oil and condensate prices and volumes.
 For 1991, Anadarko's net income was $32.4 million (59 cents per share), down 41 percent from 1990 net income of $55.2 million ($1.04 per share). Revenues for 1991 were $336.6 million, which is 13 percent lower than revenues of $388.5 million in 1990. Anadarko's financial results for annual 1991 were significantly affected by lower oil and natural gas prices and lower natural gas volumes.
 Anadarko's gas production in the 1991 fourth quarter was 42.3 billion cubic feet (Bcf or 460 million cubic feet per day (MMcf/d), which is flat compared to 1990 volumes. Anadarko's average U.S. natural gas price for the fourth quarter of 1991 was $1.76 per thousand cubic feet (Mcf), which is the same as the 1990 fourth quarter price. Anadarko's fourth quarter 1991 spot gas volumes were 31.1 Bcf (74 percent of total gas production) at an average U.S. price of $1.78 per Mcf. This compares to spot gas sales of 31.1 Bcf (74 percent of total gas production) at an average price of $1.76 per Mcf during the fourth quarter of 1990.
 Declines in the wellhead prices for natural gas during 1991 resulted in a significant decrease in Anadarko's natural gas sales revenues for the year. Anadarko's gas production for 1991 was 137.9 Bcf or 378 MMcf/d, which is 8 percent below 1990 gas volumes primarily because the company elected to sell less gas at low prices. For 1991, the company's average U.S. natural gas price was $1.51 per Mcf compared to $1.63 per Mcf in 1990. Anadarko's spot gas volumes for 1991 were 102.5 Bcf (74 percent of total gas production) at an average price of $1.49 per Mcf compared to 110.4 Bcf (73 percent of total gas production) at an average price of $1.61 per Mcf in 1990.
 Typically, natural gas sales are highly seasonal because of the increase in residential heating demand during the winter. Anadarko's financial results have traditionally been stronger in the first and fourth quarters due to the price and voluntary production swings from winter to summer months. However, continued weakness in natural gas prices is expected in 1992. As a result, lower prices and sales volumes in 1992 may adversely affect financial results in all quarters of 1992.
 Anadarko's crude oil production for the fourth quarter of 1991 was 1.1 million barrels, down 12 percent compared to crude oil production in the fourth quarter of 1990. The company's average U.S. crude oil price during the fourth quarter of 1991 was $19.99 per barrel, down 36 percent compared to the same period of 1990.
 Anadarko's crude oil production for 1991 was 4.6 million barrels, which is flat compared to 1990 production. The company's average U.S. crude oil price for 1991 fell to $19.69 per barrel, down 15 percent compared to 1990.
 Anadarko replaced 166 percent of total production with reserves of natural gas, crude oil, condensate, and natural gas liquids during 1991. Reserve additions came from exploratory and development drilling, revisions to prior estimates, enhanced recovery of existing fields and acquisition of producing properties. Anadarko's reserve replacement performance was 100 percent of total production in 1990. For the period 1986 to 1990, Anadarko's U.S. reserve replacement performance was 139 percent of production compared with an industry average of 78 percent. (Source: DOE) For the period 1987 to 1991, Anadarko's U.S. reserve replacement was 122 percent.
 During 1991, Anadarko's U.S. finding cost for proved reserves (including additions, revisions, acquisitions and improved recovery) fell 50 percent to $2.62 per energy equivalent barrel (EEB) compared with $5.29 per EEB in 1990. This decrease is due primarily to an increase in reserves in the Hugoton Field of Kansas where infill drilling operations have been underway since 1987. For the period 1986 to 1990, Anadarko's U.S. finding cost was $4.22 per EEB compared to an industry average of $5.08 per EEB. Anadarko's finding cost for 1987 through 1991 was $4.46 per EEB. Industry data for 1991 are not yet available.
 Anadarko's proved energy reserves at year-end 1991 totaled 336.5 million EEBs compared with 316.6 million EEBs at year-end 1990. Proved natural gas reserves at year-end 1991 were 1.74 trillion cubic feet (Tcf) compared with 1.70 Tcf at year-end 1990. Anadarko's proved crude oil and natural gas liquids reserves at year-end 1991 totaled 45.8 million barrels compared with 32.6 million barrels at year-end 1990.
 Anadarko's capital expenditures in 1991 totaled $166 million, which included $42 million of capitalized interest and overhead. This compares to 1990 capital spending of $211 million which included $38 million of capitalized interest and overhead. Anadarko believes operating cash flows and existing credit facilities will be sufficient to meet its capital spending for 1992, which has initially been set at about $150 million, including capitalized interest and overhead. The company's capital budget is adjusted periodically to reflect changes in market prices for oil and gas.
 According to Anadarko Chairman and Chief Executive Officer Robert J. Allison Jr., "The decline in natural gas prices during 1991 had a detrimental effect on the natural gas industry as a whole and resulted in a disappointing financial performance for 1991 for Anadarko. These results are frustrating, especially during a time when Anadarko's operating results were the best we've seen in years. We maintained a successful drilling program and did so within our cash flow limits."
 Allison added, "It now seems that 1992 could be a very difficult year for the energy industry and Anadarko. A continued decline in gas prices could have a significant negative impact on our earnings and cash flow for the year. February 1992 spot gas prices were at such low levels that the company elected to shut in about 25 percent of its total gas production. We may continue to do so during the first quarter of 1992 if prices do not improve. However, our conservative fiscal policies, as well as our strategies to replace reserves at competitive finding costs, should preserve the company's financial strength to weather the price weakness prevalent in today's energy markets. We still believe that energy markets will improve over the next several years and that the programs, policies and strategies we have put in place will build long-term value for our stockholders."
 ANADARKO PETROLEUM CORPORATION
 Volumes and U.S. Prices Quarter Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Natural gas, billion cubic feet 42.3 42.1 137.9 150.3
 Price per thousand cubic feet $1.76 $1.76 $1.51 $1.63
 Crude oil and condensate,
 thousand barrels 1,083 1,234 4,559 4,599
 Price per barrel $19.99 $31.26 $19.69 $23.27
 Plant and pipeline condensate,
 thousand barrels 136 127 409 274
 Price per barrel $18.60 $27.96 $18.86 $22.80
 Natural gas liquids, thousand
 barrels 698 405 1,957 1,504
 Price per gallon $ 0.32 $ 0.52 $ 0.33 $ 0.39
 Summary Financial Data Quarter Ended Year Ended
 millions Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Revenues
 Gas sales $77.3 $72.3 $212.3 $244.0
 Oil and condensate sales 22.7 42.1 93.1 111.3
 Natural gas liquids and other 10.6 12.5 31.2 33.2
 Total 110.6 126.9 336.6 388.5
 Costs and Expenses
 Operating expenses 20.8 19.0 76.2 68.0
 Administrative and general 10.4 11.0 38.5 42.9
 Depreciation, depletion and
 amortization 35.7 37.2 121.1 131.5
 Other taxes 9.1 7.9 27.8 27.4
 Total 76.0 75.1 263.6 269.8
 Operating income 34.6 51.8 73.0 118.7
 Other income 0.5 0.1 2.4 0.7
 Gross income 35.1 51.9 75.4 119.4
 Interest expense 7.2 9.8 27.2 35.2
 Income before income taxes 27.9 42.1 48.2 84.2
 Income taxes 8.9 14.1 15.8 29.0
 Net income $19.0 $28.0 $32.4 $55.2
 Per Common Share
 Net income $0.35 $0.51 $0.59 $1.04
 Dividends $0.075 $0.075 $0.30 $0.30
 Average number of shares
 outstanding 55.1 54.9 55.0 53.0
 Capital expenditures $52.0 $79.3 $165.5 $211.0
 -0- 2/3/92
 /CONTACT: A. Paul Taylor Jr. of Anadarko Petroleum, 713-875-1101/
 (APC) CO: Anadarko Petroleum Corp. ST: Texas IN: OIL SU: ERN


SH -- NY013 -- 5990 02/03/92 08:40 EST
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