Anadarko Petroleum Corporation announced first-quarter 2008 net income available to common stockholders totaled $286 million, or $0.61 per share (diluted). Income from continuing operations totaled $237 million, or $0.50 per share (diluted). The net income results include certain items typically excluded by the investment community in published estimates. In total, these items reduced net income by approximately $440 million, or $0.94 per share (diluted) on an after-tax basis. Cash flow from continuing operations in the first quarter of 2008 was $2.01 billion, and discretionary cash flow totaled $1.87 billion.
FIRST-QUARTER 2008 OPERATIONAL HIGHLIGHTS
- 8% increase in production over first-quarter 2007 from retained properties
- Record production in the Greater Natural Buttes and the Powder River Basin
- Deepwater discovery offshore Ghana at the Odum-1 exploration well
- Announced sale of the Peregrino and Kaskida fields for $2.1 billion including $300 million of contingent consideration
"As evidenced throughout 2007 and by the first-quarter 2008 operational highlights (above), our balanced portfolio of properties continues to deliver significant organic growth and positive financial results," Anadarko Chairman, President and CEO Jim Hackett said. "I am pleased with our operating performance through the first three months of 2008, which again exceeded the high end of our production expectations. As a result of this performance, record production in several U.S. onshore fields and our confidence in our portfolio of assets, we are reaffirming our full-year production guidance of 207 million to 212 million BOE (barrels of oil equivalent). This reaffirmation takes into account the anticipated four to six weeks of shut-in production at Independence Hub, where we are working with our partners to repair the third-party-owned export pipeline.
"In addition, I would like to provide an update on several significant developments in our deepwater drilling program. The Mahogany-2 appraisal well, located in 3,540 feet of water on the West Cape Three Points Block offshore Ghana, encountered high-quality stacked reservoir sandstones with approximately 165 feet of net oil-bearing pay. Moreover, the Mahogany-2 well is located approximately seven miles to the northeast and up-dip from the successful Hyedua-1 well on the Deepwater Tano license, indicating a gross oil column of nearly 1,955 feet. We now plan to perform a drillstem test on the Mahogany-2 well to gain a better understanding of the fluid and flow characteristics, which we anticipate will lead us to update our estimated resource range for the area. Also in our deepwater international program, we have made arrangements to move the 'Deepwater Millennium' drillship to Brazil to enable us to execute upon our deepwater subsalt program in the Espirito Santo and Campos basins.
"At our K2 unit in the deepwater Gulf of Mexico's Green Canyon area, we have completed drilling the GC 561 #2 development well. This down-dip appraisal well helped define the extent of the oil-bearing reservoirs that are present in the unit's six producing wells and also encountered new off-structure, oil-bearing sands. The well is currently being side-tracked to further evaluate the extent of these sands," Hackett added.
First-quarter 2008 sales volumes of natural gas, crude oil and natural gas liquids totaled 53 million BOE, or 585,000 BOE per day. First-quarter 2008 natural gas sales volumes averaged 2.14 billion cubic feet per day at an average price of $6.17 per thousand cubic feet, including a loss on derivatives of $1.41 per thousand cubic feet. Oil sales volumes in the first quarter averaged 190,000 barrels per day, at an average price of $78.21 per barrel, including a loss on derivatives of $14.80 per barrel. Natural gas liquids sales volumes averaged 39,000 barrels per day, at an average price of $56.42 per barrel.
In the 2007 first quarter, net income available to common stockholders was $1.72 billion, or $3.70 per share (diluted). Income from continuing operations in the first quarter of 2007 totaled $1.7 billion, or $3.64 per share (diluted). The results for the first quarter of 2007 included gains on divestitures of approximately $1.66 billion after income taxes, or $3.56 per share (diluted).