Anadarko Petroleum Corporation Reports Strong Second-Quarter Results

Strategic Insights -

Anadarko Petroleum Corporation, one of the world's largest independent exploration and production companies, announced a significant increase in net income and cash flow from operating activities in the second quarter of 2011. The company's profit attributable to common stockholders rose to $544 million, or $1.08 per share, with cash flow from operating activities reaching $1.837 billion. Anadarko's discretionary cash flow totaled $1.838 billion, exceeding capital expenditures by $117 million. The company's chairman and CEO, Jim Hackett, attributed the strong performance to record liquids sales volumes, which contributed to enhanced margins and excellent cash flows.

Key Takeaways:

  • Anadarko's second-quarter 2011 net income attributable to common stockholders was $544 million, or $1.08 per share.
  • Cash flow from operating activities reached $1.837 billion.
  • Discretionary cash flow totaled $1.838 billion, exceeding capital expenditures by $117 million.
  • Record liquids sales volumes, averaging 225,000 barrels of oil per day, contributed to enhanced margins and excellent cash flows.
  • Sales volumes reached 62 million barrels of oil equivalent (BOE), increasing 22% year-over-year.
  • The company achieved sales-volume records in several areas, including the Wattenberg, Greater Natural Buttes, Wamsutter, Bone Spring, and Marcellus Shale.
  • Anadarko closed a $1.6 billion joint-venture agreement with Korea National Oil Corporation in the Eagleford Shale, resulting in record gross sales volumes of approximately 45,000 BOE per day.
  • The company protected an additional 450,000 MMBtu per day of 2013 natural gas production through three-way collars.

Statistics:

  • Sales volumes totaled 62 million BOE in the second quarter of 2011.
  • Liquids volumes averaged 225,000 barrels per day.
  • Natural gas production averaged 2.3 billion cubic feet per day.
  • Oil production averaged 72,000 barrels per day.
  • Discretionary cash flow totaled $1.838 billion.
  • Capital expenditures were approximately $1.721 billion.
  • Anadarko has approximately 2.42 billion barrels-equivalent of proved reserves as of year-end 2010.

Sources:

  • Anadarko Petroleum Corporation's Second-Quarter 2011 Earnings Release.
  • MARKETWIRE via COMTEX news release, Jul 25, 2011.
  • Anadarko Petroleum Corporation's official website at www.anadarko.com.