Anadarko Reports Net Loss (USA)

Anadarko Reports Net Loss

Anadarko Petroleum announced 2011 fourth-quarter results, reporting a net loss attributable to common stockholders of $358 million, or $.72 per share.

These results include certain items typically excluded by the investment community in published estimates. In total, these items decreased net income by approximately $781 million, or $1.57 per share on an after-tax basis.Cash flow from operating activities in the fourth quarter of 2011 includes a $4 billion payment to settle the BP dispute. This resulted in negative cash flow from operating activities for the fourth quarter of $2.087 billion. Discretionary cash flow for the quarter totaled $1.752 billion.

For the year ended Dec. 31, 2011, Anadarko reported a net loss from continuing operations attributable to common stockholders of $2.649 billion, or $5.32 per share, and full-year 2011 cash flow from operating activities was $2.505 billion, both of which were impacted by the BP settlement and payment. Discretionary cash flow totaled $7.178 billion.

2011 Operational Highlights

--  Delivered record sales volumes of 248 million BOE (barrels of oil
    equivalent), driven by a 10-percent year-over-year increase in liquids
--  Added 392 million BOE of proved reserves, replacing 159 percent of
    production
--  Achieved 80-percent success rate in offshore exploration and appraisal
    drilling programs
--  Established net resource potential of 500 million to 1.5 billion BOE
    in the Horizontal Wattenberg
--  More than tripled the original recoverable resource estimate offshore
    Mozambique to 15 to 30-plus trillion cubic feet (Tcf)

 

During 2011, we continued to demonstrate the power of Anadarko’s capital-efficient portfolio by achieving sales volumes at the high end of guidance with capital spending at the low end of the guidance range. We also generated significant discretionary cash flow and delivered record sales volumes, strong reserve additions at very competitive costs, and a leading deepwater exploration and appraisal drilling success rate,” said Anadarko Chairman and CEO Jim Hackett.By continuing to focus capital investments on our liquids-rich opportunities, we achieved 10-percent year-over-year growth in liquids sales volumes, highlighted by production records in the Eagleford Shale, Wattenberg field, Greater Natural Buttes area, Bone Spring and certain other U.S. onshore resource plays. We successfully unitized and sanctioned the Lucius project in the Gulf of Mexico, with anticipated first oil in 2014. Also in the Gulf, we’ve continued to advance the Caesar/Tonga development toward first oil, which is expected by mid-year 2012. Internationally, the El Merk project in Algeria is about 88-percent complete, with significant oil volumes expected near year end, and we continue to de-risk and advance growth opportunities offshore Mozambique and Ghana. The depth and performance of our portfolio continues to keep us on the path toward meeting our strategic objectives.”

2011 Financial Highlights

--  Generated approximately $7.2 billion of discretionary cash flow,
    increasing cash flow per BOE by 26 percent over 2010 to approximately
    $29 per BOE
--  Removed significant uncertainty regarding future liabilities via the
    BP settlement
--  Received $419 million of contingent sales proceeds related to the 2008
    divestiture of the Peregrino field offshore Brazil

 

We generated strong discretionary cash flow of almost $7.2 billion in 2011, primarily driven by the growth of higher-margin liquids volumes,” said Hackett. “This growth resulted in the generation of $625 million in free cash flow during the year, even taking into account the $880 million associated with strategic acquisitions of two natural gas processing plants. We believe the depth and quality of Anadarko’s diverse portfolio will continue to provide for significant future cash generation, as well as the flexibility to prudently allocate capital during this period of low natural gas prices.

In addition, we reached a settlement with BP over the 2010 Deepwater Horizon event, removing significant uncertainties for our stakeholders and returning investor and management focus to the value-creation opportunities in our portfolio. We look forward to updating our stakeholders regarding our capital program for 2012 and plans for value-based growth at our upcoming Investor Conference scheduled for March 13 in The Woodlands,” added Hackett.

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LNG World News Staff, February 8, 2012