Anadarko, Apache, and Mitchell Energy report record earnings

Three independents Thursday reported record first-quarter net earnings and strong cash flow from operations, which the companies attributed to high natural gas prices. Anadarko Petroleum Corp., Apache Corp., and Mitchell Energy & Development Corp. expect a strong second quarter.


By the OGJ Online Staff

HOUSTON, Apr. 26 -- Three independents Thursday reported record first-quarter net earnings and strong cash flow from operations, which the companies attributed to high natural gas prices.

Anadarko Petroleum Corp. and Apache Corp., both of Houston, and Mitchell Energy & Development Corp. of The Woodlands, Tex., were optimistic that the second quarter also would prove financially strong.

Anadarko reported net income of $656 million, or $2.50/share, for the first quarter compared with $31 million, or 24¢/share, for the same period last year.

Cash flow from operations during the first quarter of 2001 was $1.117 billion, a 727% increase from $135 million in the first quarter of 2000.

Robert J. Allison, Anadarko chairman and CEO, said, "Our first quarter earnings of $656 million come within striking distance of earning almost as much as we did for all of 2000, which was $796 million."

Apache reported record net income of $277.3 million, $2.24/share, up from $104.2 million, or 92¢/share, in the prior-year period. Cash from operations rose to $557 million, compared with $300.8 million in the year-earlier period. Revenues increased 77% to $795.1 million.

Natural gas production increased 33% to a record 988 MMcfd. Apache expects to produce 1.15 bcf of gas and 165,000 b/d of liquids during the second quarter.

Raymond Plank, chairman and CEO, said Apache's exploration and development budget for 2001 is $1.2 billion, including aggressive exploration programs in Egypt, Australia, and Canada.

Mitchell reported first-quarter earnings of $122.9 million, or $2.41/share, compared with $43.3 million, or 87¢/share, for the same period last year.

Gas revenues increased $156 million because of higher volumes and prices. Gas sales volumes also increased sharply over last year's first quarter, rising 35% to 369 MMcfd.

Sales prices averaged $6.87/Mcf for the quarter, up $3.98 from the prior-year period.

George P. Mitchell, chairman and CEO said, "We are one of only a few exploration and production companies that are projecting double-digit gas production growth this year, and the only company with a 3-year compounded organic growth target of over 20%."

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