Higher production and prices boost earnings for Anadarko, Apache

Anadarko Petroleum Corp. said higher prices and production drove its net income available to common stockholders to $401 million for the second quarter, vs. $64 million a year earlier. Apache Corp. reported second-quarter earnings before nonrecurring items of $241 million, up 73% from $139 million in the prior-year period.

July 26, 2001

2 min read

By the OGJ Online Staff

HOUSTON, July 26 -- Anadarko Petroleum Corp. said higher prices and production drove its net income available to common stockholders to $401 million for the second quarter, vs. $64 million a year earlier.

Cash flow from operations was $1.05 billion in the second quarter, compared with $167 million in the same period in 2000.

Robert J. Allison Jr., Anadarko chairman and CEO, said, "Total production volumes were up more than 10% over the first quarter of this year, and they increased 271% from the second quarter of 2000.

"We're still on target to meet our production growth goal for this year, although we're shifting part of our spending from some onshore natural gas projects in the Lower 48 to more profitable opportunities in the Gulf of Mexico and in Canada. Our capital budget is basically unchanged, and we have 93 company-operated rigs, with working interests in 22 others, making Anadarko the most active driller in North America."

In the second quarter, Anadarko's production of gas, crude, and gas liquids totaled 52 million boe/d, compared to 14 million boe/d for the second quarter of 2000.

Meanwhile, Apache Corp. reported second-quarter earnings before nonrecurring items of $241 million, up 73% from $139 million in the prior-year period.

Cash from operations rose 59% to $549 million, compared with $346 million in the prior period.

The improvement in financial performance during the second quarter of 2001 reflected a 53% increase in natural gas production, to 1.2 bcfd, and a 38% increase in liquid hydrocarbon production, to 163,449 b/d.

During the second quarter, Apache realized $25.24/bbl, down slightly from $25.88/bbl in the prior-year period, and $4.01/MMcfd, up from $3.07.

G. Steven Farris, president and CEO, said, "Fueled not only by acquisitions, but also by our highly successful first-half drilling program, Apache posted its largest quarter-over-quarter production gain in nearly a decade."